Question
Florida allows a cap on the County sales tax (a.k.a. Surtax) at $5000. How does Cyrious address this?
Answer
Cyrious researched the question of the cap on the surtax (a.k.a County Tax) in the state of Florida. The best description of the tax comes from “Retailer and Wholesaler Standard Industry Guide” issued by the Florida Department of Revenue. (See retailer_wholesaler_external|http://dor.myflorida.com/dor/taxes/sigs/retailer_wholesaler_external|retailer_wholesaler_external.pdf release 08.01.2010.)
Page 11 provides a good description of the surtax exemption:
There are a couple of key terms that need clarification:
- Tangible Personal Property is contrasted with Real Property. Real property refers to property that is not movable and considered part of the facilities. According to page 20 of the same document), under the section entitled “Fabrication of Tangible Person Property”, if a piece of glass is cut to size for a specific property it is considered Real Property, not Personal Property. My reading is that this same concept would apply to signage.
- The Item-By-Item Basis requirements mean that separate items should be individually taxed for purposes of the tax cap. Purchases in quantity of the same item should be considered one transaction, which is consistent with Control's handling of all items in one line item.
Based on these, Cyrious implements the surtax cap on the line item level. Additional modifications to this system would have to be implemented manually (by creating a tax class with only Florida state tax and splitting part of the sales dollars onto this line).
We invite further informed commentary.