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Sale/Installation of Cemetery Monument or Headstone Exempt from FL Sales Tax

On August 29, 2013, The Florida Department of Revenue (the “DOR”), in a Technical Assistance Advisement (Document Locator Number TAA-117872 / #13A-020), provided that no sales tax is due on the sale of a monument or headstone to be installed at the purchaser’s designated location.  Nevertheless, providers of burial services or monuments, including funeral homes or sellers of monuments, are required to pay tax on the costs of items they purchase to be used in providing burial services or installing monuments.

1) Facts: Taxpayer purchased a monument.  The contract provided the price of the monument, charged Florida sales tax, and directed that the monument be delivered and then installed in a certain cemetery.

2) Law on PointFla. Stat. § 212.05 generally imposes a tax on the sale of tangible personal property.  Fla. Stat. § 212.08(2)(a) exempts funerals from sales tax.  It nevertheless notes that funeral directors must pay tax on all tangible property used by them in their business.  Rule 12A-1.035, F.A.C. provides further guidance on this exemption by providing specific transactions on which sales tax should not be charged.

3) Conclusion: The provider should not have charged tax on the sale and installation of the monument as a separate line item in the contract.

 

Note that a Technical Assistance Advisement (“TAA”) is binding on the DOR only under the facts and circumstances described in that TAA.  In addition, a TAA has presidential value only to the taxpayer who requests it.   Thus, the DOR may reach a different conclusion under other facts and circumstances. See Fla. Stat. § 213.22.

 

Want to further discuss these issues?  Contact me at 954-944-3929 or nrumbak@rumbaklaw.com.

*This document contains legal information, but does not contain legal advice.

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