- Florida Department of Revenue introduced a sales and use tax exclusion for certain motor vehicle leases
- Exclusion applies to leases or rentals of motor vehicles used in trade or established business for 12 months or more
- Lessors must have paid sales or use tax on the vehicle’s purchase price
- Exclusion also applies to renewals of such leases or rentals
- Definition of “motor vehicle” excludes certain types of vehicles
- Lessors purchasing qualifying motor vehicles outside Florida can receive a credit against Florida use tax
- Credit applies if a similar tax was lawfully imposed and paid in the other state or territory
- Aim of the tax exclusion is to reduce sales tax burden on long-term vehicle leases and rentals for businesses
- Businesses encouraged to review the complete Tax Information Publication or contact the Florida Department of Revenue for further details.
Source: salestaxinstitute.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
