DOR Update

By Renee Watters, Florida Department of Revenue

Although registered dealers have been able to verify the validity of resale and exemption certificates via telephone IVR (Interactive Voice Response) and bulk file submission since 2001, an online method recently has been added to these options on the DOR Web site at https://suntax.state.fl.us/irj/portal/anonymous, as allowed by Section 212.186, F.S., and Rule 12A-1.039, F.A.C. 

This system allows an individual to verify the validity of a purchaser’s Sales Tax Annual Resale Certificate or Consumer’s Certificate of Exemption. The individual can choose to manually enter up to five certificate numbers to be verified at once or upload a batch file (up to 50,000 accounts) for Purchaser Certificate Verification and retrieve that file 24 hours later. For assistance, individuals may call (877) 357-3725 or (877) FL-RESALE, Monday through Friday, 8 a.m. to 7 p.m., ET.

How It Works

Selling dealers, who visit the Department's Web site and enter their own certificate number for validation, can verify five resale or exemption certificates at a time.  Instantly, they will receive a response that indicates whether or not the certificates submitted are valid along with single transaction authorization numbers for each valid account. For dealers wishing to submit a file (of up to 50,000 accounts) to verify their customers' resale or exemption certificates, the prescribed file format is available online.  The submitting dealer can return to the site after 24 hours to download the file of authorizations.

This system is the first public-use application of the Department's new enterprise portal functionality that is being rolled out over the next few years. A future enhancement to this resale and exemption certificate verification system will be Web service functionality, which will make it possible for retailers to connect via their cash register systems and receive certificate verification at the point of sale.

Sales Tax Exemptions on Purchases of Machinery and Equipment

The 2006 legislative session resulted in a change in law concerning several tax exemptions related to purchases or leases of machinery and equipment. The tax exemptions that were affected include:

• machinery and equipment purchased by expanding manufacturers
• machinery and equipment purchased for use in mining operations
• machinery and equipment purchased under federal procurement
• machinery and equipment purchased for research and development

For further details, review the Tax Information Publication (06A01-06) in the Tax Law Library at http://www.myflorida.com/dor/law/

Sales Tax Refund on Equipment, Machinery, and Other Materials for Renewable Energy Technologies

According to recent legislation (SB 888) and Ch. 2006-230, L.O.F.s.212.08(7)(ccc), F.S., effective July 1, 2006, and ending July, 2010, a refund is available on purchases of equipment, machinery and other materials for renewable energy technologies. The refund is applicable to the following items:

• hydrogen-powered vehicles, materials incorporated into hydrogen-powered vehicles, and hydrogen-fueling stations
• commercial stationary hydrogen fuel cells
• materials used in the distribution of biodiesel (B10-B100) and ethanol (E10-E100), including fueling infrastructure, transportation, and storage for these fuels.

The conditions and limitations for a refund may be found in the Taxpayer Information Publication (06A01-10) in the Tax Law Library on the DOR Web site, as well as a list of statutory limitations.

DOR’s Homepage Makeover

On July 1, DOR launched a new Web site at www.myflorida.com/dor with individual Web pages for General Tax Administration, Child Support Enforcement and Property Tax Administration. All of the same information is still available, but in a more user-friendly format with added features and functionality, such as the verification of resale and exemption certificates feature mentioned above.