SALT Report 1367 – The Florida Department of Revenue released tax information regarding motor vehicles sold in Florida to residents of another state. Florida Statute section 212.08(10) allows “a partial exemption for a motor vehicle purchased by a resident of another state. The tax imposed is the amount of sales tax that would be imposed by the purchaser’s home state if the vehicle were purchased in that state; however, it cannot exceed the Florida 6% tax rate.”
The partial exemption does not apply to a nonresident corporation or partnership when:
- An officer of the corporation is a Florida resident
- A stockholder who owns at least 10 percent of the corporation is a Florida resident, or
- A partner who has at least a 10 percent ownership in the partnership is a Florida resident
However, the partial exemption may be allowed for corporations or partnerships if the vehicle is removed from Florida within 45 days of purchase and remains outside the state for a minimum of 180 days, regardless of the residency of the owners or stockholders of the purchasing entity.
Nonresident purchasers must complete Form DR-123
, Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in Another State, at the time of sale, declaring the intent to license the vehicle in another state within 45 days of the date of sale. If the nonresident purchaser licenses the motor vehicle in their home state within 45 days from the date of purchase, there is no requirement that the motor vehicle be removed from Florida.
According to the publication, the states of Arkansas, Mississippi, and West Virginia impose sales tax on motor vehicles and no credit is allowed for taxes paid to Florida. Residents of these states are required to pay sales tax to Florida at the rate imposed by their home state when they purchase a vehicle in Florida and must pay an additional tax when the vehicle is licensed in their home state.
The rate of Florida tax to be imposed by each state is included in the publication.
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