You can save money on sales tax for handicap vans. It is legal!
Rule 12A-1.020(8), F.A.C., specifically provides that "parts, special attachments, special lettering, and other like items that are added to or attached to tangible personal property to assist a person with special needs are exempt from tax when purchased pursuant to an individual prescription. When purchased without an individual prescription, these items are subject to tax. For example, items installed on motor vehicles to make them adaptable for use by persons with special needs, such as special controls, purchased pursuant to a written prescription are exempt. However, the motor vehicle and the standard equipment available on the motor vehicle are subject to tax. If tangible personal property is sold with special controls, lettering, or devices, and the additional charge for the added features is separately stated on the sales invoice for the tangible personal property, that charge for the added features is exempt when purchased pursuant to an individual prescription." This rule also concerns ramps and lifts.
If a van being sold has been converted or modified for use by an individual with disability, an approved method to determine the portion of the total cost subject to tax and the portion exempt from tax would be determined by how much of the cost of the van is attributable to conversions or modifications versus the fair market value of a plain van based on the common industry standards and factors.
Example:
Conversion van for use by an individual with a disability - sales price $25,000
Non-conversion van (similiar make, model, year, mileage, etc) <$14,000>
The amount attributed to modifications $11,000
The $11,000 attributed to prescribed modifications to the van is exempt from tax under s.212.08(2)(a), F.S., and Rule 12A-1.020(8), F.A.C. The $14,000 attributable to the cost of the van is subject to tax.
Call us 615-674-3404 to get more info and help to reduce your sales tax while purchasing handicap vans.
Rule 12A-1.020(8), F.A.C., specifically provides that "parts, special attachments, special lettering, and other like items that are added to or attached to tangible personal property to assist a person with special needs are exempt from tax when purchased pursuant to an individual prescription. When purchased without an individual prescription, these items are subject to tax. For example, items installed on motor vehicles to make them adaptable for use by persons with special needs, such as special controls, purchased pursuant to a written prescription are exempt. However, the motor vehicle and the standard equipment available on the motor vehicle are subject to tax. If tangible personal property is sold with special controls, lettering, or devices, and the additional charge for the added features is separately stated on the sales invoice for the tangible personal property, that charge for the added features is exempt when purchased pursuant to an individual prescription." This rule also concerns ramps and lifts.
If a van being sold has been converted or modified for use by an individual with disability, an approved method to determine the portion of the total cost subject to tax and the portion exempt from tax would be determined by how much of the cost of the van is attributable to conversions or modifications versus the fair market value of a plain van based on the common industry standards and factors.
Example:
Conversion van for use by an individual with a disability - sales price $25,000
Non-conversion van (similiar make, model, year, mileage, etc) <$14,000>
The amount attributed to modifications $11,000
The $11,000 attributed to prescribed modifications to the van is exempt from tax under s.212.08(2)(a), F.S., and Rule 12A-1.020(8), F.A.C. The $14,000 attributable to the cost of the van is subject to tax.
Call us 615-674-3404 to get more info and help to reduce your sales tax while purchasing handicap vans.