Florida Senate - 2023 SB 396 By Senator Rodriguez 40-00678A-23 2023396__ 1 A bill to be entitled 2 An act relating to the sales tax on motor vehicle 3 leases and rentals; amending s. 212.05, F.S.; 4 providing that sales tax does not apply to certain 5 leases or rentals of motor vehicles used primarily in 6 the trade or established business of the lessee or 7 rentee; making a technical change; providing an 8 effective date. 9 10 Be It Enacted by the Legislature of the State of Florida: 11 12 Section 1. Paragraph (c) of subsection (1) of section 13 212.05, Florida Statutes, is amended to read: 14 212.05 Sales, storage, use tax.—It is hereby declared to be 15 the legislative intent that every person is exercising a taxable 16 privilege who engages in the business of selling tangible 17 personal property at retail in this state, including the 18 business of making or facilitating remote sales; who rents or 19 furnishes any of the things or services taxable under this 20 chapter; or who stores for use or consumption in this state any 21 item or article of tangible personal property as defined herein 22 and who leases or rents such property within the state. 23 (1) For the exercise of such privilege, a tax is levied on 24 each taxable transaction or incident, which tax is due and 25 payable as follows: 26 (c) At the rate of 6 percent of the gross proceeds derived 27 from the lease or rental of tangible personal property, as 28 defined herein; however, the following special provisions apply 29 to the lease or rental of motor vehicles and to peer-to-peer 30 car-sharing programs: 31 1. When a motor vehicle is leased or rented by a motor 32 vehicle rental company or through a peer-to-peer car-sharing 33 program as those terms are defined in s. 212.0606(1) for a 34 period of less than 12 months: 35 a. If the motor vehicle is rented in Florida, the entire 36 amount of such rental is taxable, even if the vehicle is dropped 37 off in another state. 38 b. If the motor vehicle is rented in another state and 39 dropped off in Florida, the rental is exempt from Florida tax. 40 c. If the motor vehicle is rented through a peer-to-peer 41 car-sharing program, the peer-to-peer car-sharing program shall 42 collect and remit the applicable tax due in connection with the 43 rental. 44 2. Except as provided in subparagraph 3., for the lease or 45 rental of a motor vehicle for a period of not less than 12 46 months, sales tax is due on the lease or rental payments if the 47 vehicle is registered in this state; provided, however, that no 48 tax shall be due if the taxpayer documents use of the motor 49 vehicle outside this state and tax is being paid on the lease or 50 rental payments in another state. 51 3. The tax imposed by this chapter does not apply to the 52 lease or rental of a commercial motor vehicle as defined in s. 53 316.003(14)(a) to one lessee or rentee, or of a motor vehicle as 54 defined in s. 316.003 which is to be used primarily in the trade 55 or established business of the lessee or rentee, for a period of 56 not less than 12 months when tax was paid on the sales
purchase57 price of such vehicle by the lessor. To the extent tax was paid 58 with respect to the purchase of such vehicle in another state, 59 territory of the United States, or the District of Columbia, the 60 Florida tax payable shall be reduced in accordance with s. 61 212.06(7). This subparagraph shall only be available when the 62 lease or rental of such property is an established business or 63 part of an established business or the same is incidental or 64 germane to such business. 65 Section 2. This act shall take effect July 1, 2023.