As a property owner or developer in Florida, did you know that you have a unique opportunity to save on construction costs for your condo building or real estate development? A sales tax exemption period on impact-resistant doors, garage doors, and windows is in effect through June 30, 2024. This means that during this course, you won’t have to pay sales tax on the retail sales of these impact-resistant building components, whether they are intended for commercial or noncommercial use. Get all the details below and take advantage of this useful tax exemption.
Understanding the Florida Impact-Resistant Windows and Doors Sales Tax Exemption
Firstly, it’s important to clarify what qualifies for this exemption. “Impact-resistant doors,” “impact-resistant garage doors,” and “impact-resistant windows” are those that are explicitly labeled as impact-resistant or possess an impact-resistant rating. These are the key elements that provide protection against severe weather conditions, such as hurricanes.
How to Get the Exemption
To take advantage of this sales tax exemption, you need to understand the following guidelines:
1. Reporting Sales
If you are a Florida dealer selling impact-resistant doors, garage doors, or windows during the exemption period, you must report these sales as exempt on your sales tax returns.
2. Gift Cards
The exemption extends to purchases made with gift cards during the exemption period, regardless of when the gift card was initially purchased. However, if you use a gift card after the exemption period, the purchase becomes taxable even if the gift card was bought during the sales tax exemption period.
3. Remote Sales
If you buy eligible items from a marketplace provider or a remote seller, they are exempt from Florida sales tax if the order is accepted during the exemption period, even if delivery occurs after the period ends.
When customers return eligible items purchased during the exemption period, they can request a refund or tax credit if they have a receipt or invoice showing tax was initially paid. Retailers should also maintain documentation to demonstrate tax payments on the item’s original purchase.
Exchanging an eligible item for the same item after the exemption period does not incur tax even if the exchange is made after the sales tax immunity period. However, if an eligible item is purchased during the sales tax exemption period and then returned, and the customer receives credit toward that purchase that did not qualify for the exemption, sales tax will apply.
6. Rain Checks
If you receive a rain check for a qualifying item during the exemption period, it can be used after the period to purchase the item tax-exempt. Nevertheless, issuance of a rain check during the sales tax exemption period will not qualify for the item to be exempt if it was purchased after the sales tax exemption period.
7. Service Warranties
The taxation of service warranty contracts depends on the taxability of the item being sold. If the item is exempt from tax, the service warranty charge is also exempt.
8. Shipping and Handling
Shipping charges must be proportionately allocated to the taxable and exempt items on a sales invoice or receipt. If the item is exempt, the associated shipping charge is also exempt.
9. Panama City and Panama City Beach Dealers
These areas impose a 1% merchant’s license fee or tax on retailers, which is included in the sales price. If separately stated, the fee must be allocated to each item on the invoice.
Act Now and Save!
The two-year tax exemption period began on July 1, 2022, and ends on June 30, 2024. Impact-resistant windows, doors, and garage doors are vital not only for safety and security but also for insurance savings and peace of mind during extreme weather events. This sales tax exemption period is a valuable opportunity for property owners and developers to reduce construction costs significantly. Keep in mind that the sales tax exemption period also applies to items purchased online, mail order, or catalog.
If you’re considering impact-resistant doors, garage doors, or windows for your condo building or real estate development, act now. It’s essential not to wait until the last minute to request an estimate for these components. Planning ahead ensures you can take full advantage of the tax savings. It’s a win-win situation: you improve the resilience of your property and keep more money in your pocket! Don’t miss this golden opportunity, request an estimate on our high-performance impact door and window systems today and secure your property against the elements while benefiting from the Florida Impact-Resistant Windows and Doors Sales Tax Exemption.