Bill of Lading

[puppetjr]

My question involves business law in the state of: Florida
I am selling a vehicle to someone in Puerto Rico. I was told, that if their agent picks it up from me in FL to take to the port, they have to pay FL state sales tax. However, if I have a carrier take the vehicle to the port where the buyer has arranged the oversea shipping, they will not be required to pay the FL sales tax. (they will pay tax in Puerto Rico) Does the carrier provide the "Bill of Lading" or do I provide that paperwork. Is their anything else I would need? thanks

[Mr. Knowitall]

The Department of Revenue explains:

Section 212.08(10), Florida Statutes (F.S.), allows a partial exemption for a motor vehicle purchased by a resident of another state. The tax imposed is the amount of sales tax that would be imposed by the purchaser’s home state if the vehicle were purchased in that state; however, it cannot exceed the Florida 6% tax rate. The tax collected is Florida tax and must be paid to the Florida Department of Revenue. The nonresident purchaser must complete, at the time of sale, Form DR-123, Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in Another State, declaring his or her intent to license the vehicle in his or her home state within 45 days of the date of sale. If the nonresident purchaser licenses the motor vehicle in his or her home state within 45 days from the date of purchase, there is no requirement that the motor vehicle has to be removed from this state. The rate of Florida tax to be imposed under this provision is indicated for each state below.

The partial exemption for a motor vehicle sold in Florida to a nonresident purchaser does not apply to a nonresident corporation or partnership when:

• An officer of the corporation is a Florida resident; or
• A stockholder who owns at least 10 percent of the corporation is a Florida resident; or
• A partner who has at least a 10 percent ownership in the partnership is a Florida resident.

However, the partial exemption may be allowed for corporations or partnerships if the vehicle is removed from Florida within 45 days after purchase and remains outside this state for a minimum of 180 days, regardless of the residency of the owners or stockholders of the purchasing entity.


Currently, the states of Arkansas, Mississippi, and West Virginia impose a sales tax on motor vehicles, but they DO NOT allow a credit for taxes paid to Florida. Residents of these states should be informed that they must pay sales tax to Florida at the rate imposed by their home state when they purchase a vehicle in Florida and also must pay tax to their home state when the vehicle is licensed in their home state.

The buyer appears to be trying to implicate the exception in Florida Statutes, Sec. 212.06(5), relating to goods irrevocably committed to the exportation process. See also Rule 12A-1.0015(2)(b).

(b) When a dealer sells tangible personal property, commits the property to the exportation process at the time of sale, and the exportation process remains continuous and unbroken until the property is exported from Florida, the dealer is not required to collect tax. The intent of the seller and the purchaser to export the property is not sufficient to establish that the property is not subject to tax in Florida. The delivery of the property to a location in Florida for subsequent export from Florida is insufficient to establish documentary evidence that the property sold was irrevocably committed to the exportation process. The following are examples of methods to commit the property to the exportation process at the time of sale:

1. The dealer is required by the terms of the sale contract to deliver the property outside Florida using the dealer’s own mode of transportation;

2. The dealer is required by the terms of the sale contract to mail the property by United States mail to a destination located outside Florida; or

3. The dealer is required by the terms of the sale contract to deliver the property to a carrier, licensed customs broker, or forwarding agent for final and certain movement of the property to a destination located outside Florida.

a. The term “carrier” means a person regularly engaged in the business of transporting tangible personal property owned by other persons for compensation. The term “carrier” includes common carriers and contract carriers.

b. The term “licensed customs broker” means a person licensed by the United States customs service to act as a custom house broker.

c. The term “forwarding agent” means a person regularly engaged in the business of preparing property for shipment or arranging for its shipment for compensation.

d. Any person not engaged in the business of receiving tangible personal property owned by other persons and shipping or arranging for shipping for compensation does not become a carrier or forwarding agent by being designated by the purchaser to receive and ship goods to a point outside Florida.

I take no position on whether the buyer's proposal will satisfy the governing statutes and administrative rules.

[Browne]

My question involves business law in the state of: Florida
I am selling a vehicle to someone in Puerto Rico. I was told, that if their agent picks it up from me in FL to take to the port, they have to pay FL state sales tax. However, if I have a carrier take the vehicle to the port where the buyer has arranged the oversea shipping, they will not be required to pay the FL sales tax. (they will pay tax in Puerto Rico) Does the carrier provide the "Bill of Lading" or do I provide that paperwork. Is their anything else I would need? thanks

I don't see how it makes a difference. Sales tax has to get paid regardless of any third party involvement. And shipping companies are the ones who typically print out a Bill of Lading in this case.