According to the Tax Foundation, the state of Florida has been cited for decades as having one of the lowest tax burdens in the United States due to not having a state income tax.Knowing where an item was purchased is required for calculating the sales tax in Florida.To make the task easier, learn which taxes apply to purchases and use reliable resources.
Step 1: There is a difference between use tax and sales tax in Florida.
Sales tax and use tax are not the same.Sales tax is paid on purchases and rentals within the state's borders.This tax is typically collected at the time of purchase by the seller, who in turn must report and pay it to the Florida Department of Revenue.Use tax is usually paid on purchases made out of state and brought or delivered into the state, even if the tax was not charged at the time of purchase.The items that are tax-exempt with the intent to resell are also assessed use tax.The purchaser is responsible for reporting and paying use tax.
Step 2: Determine if there are taxes on the sale.
Florida residents don't have to pay sales taxes on intangible purchases.Purchases of tangible products or services are not subject to sales tax.Groceries, seeds, and prescription medicines are exempt from Florida sales tax.Products that are created or repaired are taxed, but other services are not.accountancy services and event planning are not taxed, but the sale of clothing is.The shipping charge is taxed if you are shipping an item.Another tax is charged for rentals of property for less than six months.The tax is charged at 13 percent.The prepared food is taxed at a higher rate.Here you can find a complete account of taxes charged in Florida.
Step 3: Understand how tax is calculated.
TheBracket method is used to calculate sales tax in Florida.It's not possible to simply calculate 6% of the sale amount.According to the brackets published by the Florida Department of Revenue, you must round up the sales tax.This can result in a higher tax collection.You can back-calculate sales tax if you don't use the brackets.You could be fined if you undercalculate the amount of tax due by dividing the sale total by 1.05%.There is a list of sales tax brackets at thedor.myflorida.com.The brackets are for the various discretionary county surtax amounts.
Step 4: Understand the discretionary surtax.
55 of Florida's 67 counties charge discretionary sales and use a surtax on items purchased within or delivered inside their borders.The surtax is added to the state sales tax rate.Discretionary taxes are usually used to pay for public improvements.
Step 5: Do discretionary taxes apply to the sale?
The first $5,000 of the sales amount for sale or use of any item of tangible personal property is subject to the discretionary sales and use surtax."Tangible personal property" means anything that can be seen, touched, or measured.The $5,000 cap does not apply to property rentals or services.
Step 6: Pick the purchaser's county and surtax amount.
The amount of surtax charged depends on the county.To find out how much of a surtax is added to the sales tax percentage, locate the purchaser and research their county.There is a list of which Florida counties charge discretionary surtaxes and which don't.The amount of discretionary tax is included in the list.Every November the form is updated.If any counties have changed their surtax amounts, be sure to check the Department of Revenue's website regularly.
Step 7: Determine the surtax amount for an item sold in Florida.
If the purchaser's county charges a discretionary surtax, items sold by Florida dealers can be subject to it.If a Florida dealer in a county with a discretionary surtax sells to a purchaser in the same county, the sur tax for that county is assessed on the purchase and added to the state sales tax rate.The surtax for the purchaser's county is added to the state sales tax rate if a Florida dealer sells a product to them.The surtax for the purchaser's county is added to the state sales tax rate if a Florida dealer sells a product in that county.If a Florida dealer sells to a purchaser in a county that does not have a discretionary surtax, only the base state sales tax is charged on the purchase.
Step 8: There is a surtax amount for an out-of-state dealer.
The discretionary surtax of the buyer's county is paid by out-of-state dealers.If a Florida purchaser buys a car from an out-of-state dealer, that dealer's surtax is assessed.No surtax is assessed on the purchase of a car from an out-of-state dealer.
Step 9: The sales tax rate in Florida is basic.
The current Florida state sales tax rate is 6 percent.
Step 10: The basic rate should be adjusted by the surtax amount.
To find the final sales tax rate, you have to add the surtax amount to the basic rate.There would be a total of 7.5 percent sales tax charged in one of the eight counties with a 1.5 percent surtax.The average sales tax amount in the state is 6.69 percent.
Step 11: The tax rate is adjusted by the purchase amount.
The amount of tax is determined by this.The tax between the whole dollar amounts can be calculated using the brackets system.You can find the sales tax brackets on the website.You can calculate Florida sales tax with an online calculator.There is a calculator at http://www.calculator.net that can be used to calculate sales tax rates for Florida and 9 other states.
Step 12: The sales tax should be reported.
You have to pay the sales tax on the products you sell if you are a seller.You can do this online at the Florida Department of Revenue's website.You can purchase vendor software from a licensed vendor that will file your taxes and help you to pay them more easily.There are software vendors at http://floridarevenue.com/taxes/Documents/Fl_eFileVendor.Businesses that collect less than $20,000 per year in sales and use taxes can use a paper version of From DR-15: Sales and Use Tax Return to report and pay their taxes.The state encourages taxpayers to report and pay online.Before you can collect and report sales tax, you have to have a permit.You can get this permit online with the Florida Department of Revenue.You will get your permit in about three days with a $5 fee.Florida sales taxes are due between the 1st and 20th of the month and are late after that time.