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With the approach of the holiday season, the Florida Department of Revenue is getting into the spirit with its issuance of Tax Information Publication TIP No. 24A01-14, which addresses the taxability of holiday decorations. According to the Publication, the sale and rental of decorations and lighting (not permanent) are subject to Florida sales tax. In addition, any services that are part of the sale or rental, such as design, installation, removal, or storage are subject to sales tax.
Charges to install or remove customer-owned decorations or lighting are not subject to tax if the service provider does not supply any tangible personal property. Tangible personal property may include light clips, adhesives, extension cords, or similar items. If tangible personal property is provided with the installation or removal service, the total amount charged for the service is subject to sales tax.
The Publication addresses several examples of installation, removal, and storage services related to decorations and lighting. Service providers should review the Publication to determine the proper sales tax treatment of their transactions.
The full Publication can be accessed on the Florida Department of Revenue webpage.
If you have questions about any of Florida’s sales tax rules or guidance, please contact the HBK SALT advisory group at hbksalt@hbkcpa.com.
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