Effective March 17, 1993, per the State of Florida Department of Revenue, Sales or Use Tax Is collected on all motor vehicles titled in the State of Florida unless exempted by state tax law.
Sales tax applies to transfers of motor vehicles, except when the transfer is a gift, even trade, inheritance, or divorce. The sales tax exemption affidavit (Section 11 on the HSMV Form 82040, Application for Certificate of Title with/without Vehicle Registration) must be completed for exempt transfers.
Use tax applies to any motor vehicle brought into the State of Florida for use upon Florida roads, unless exempted by state law. Vehicles owned by (title in the name of) the applicant for over six months are exempt from use tax. All other vehicles are considered purchased for use in Florida and use tax applies. Use tax is calculated in the same manner as sales tax. Sales or Use Tax shall be computed as follows:
Purchase Price $____________________ Accessories, Documentation Fees, Preparation Fees
Total Purchase Price less gross trade-in (dealers sales only)
$____________________ Total Taxable Sales Price $_____________________ Multiply by: Florida sales tax rate of 6% $_____________________ Florida Sales Tax $_____________________ Subtract: State, county, or city sales taxes
collected by state where vehicle was purchased
$_____________________ Total State Sales Tax Due $_____________________
Enclose the Bill of Sale, if applicable. All Casual sales (between individuals, not involving a dealer) should be documented with a notarized Bill of Sale, signed by both the seller and purchaser. Without this documentation, if the sales price is 80% or less than the average loan value of the vehicle, you will receive a Letter of inquiry from the Florida Department of Revenue.
Section 212.06(7), F.S., allows a credit to be given on tangible personal property brought into Florida where a like tax has been lawfully imposed and paid in another state. If the amount paid is equal to or greater than the amount imposed by Florida, no additional tax is due. If the amount is less than the amount imposed in Florida, only the difference between the two is due. However, it is presumed that tangible personal property used in another state, territory of the U.S., or District of Columbia, for six months or longer before being brought into Florida, was not purchased for use in Florida.
NOTE: An exception may apply, if a member of the United States military, who is a permanent Florida resident, is stationed outside Florida, purchases a vehicle outside of Florida and titles and registers the vehicle in Florida. The transfer of title and registration of the vehicle is not subject to Florida sales and use tax if the military member provides documentation that the vehicle will not be brought into Florida within six months. Acceptable documentation would be a copy of the military member's military orders and an affidavit stating the vehicle will not be brought into Florida within six months.
Another exception may also apply to individuals who are temporarily living in another state for six months or more, such as a student going to school in another state. An affidavit would also be required from the individual explaining the circumstances and stating they will not bring the motor vehicle into Florida for at least 6 months.
CREDIT IS NOT ALLOWED BY FLORIDA FOR TAX PAID TO THE FOLLOWING STATES:
ALASKA, DELAWARE, DISTRICT OF COLUMBIA, KENTUCKY (used vehicles), HAWAII, MARYLAND, MONTANA, NEW HAMPSHIRE, OREGON, WEST VIRGINIA (used vehicles).