Florida DOR Explains Sales/Use Tax Treatment of Security Services Provided by Off-Duty Law Enforcement Officers

On August 23, 2012, the Florida Department of Revenue issued TIP # 12A01-13, which addressed the sales and use tax treatment of security services provided by off-duty law enforcement officers.  The general rule under Section 212.05(1)(i)1.a., Florida Statutes,  is that Florida imposes sales tax on detective, burglar protection, and other protection services.  Nevertheless, Section 212.05(1)(i)1.a. provides that no tax is imposed when a law enforcement officer provides law enforcement and public safety services instead of performing taxable detective, burglar protection, or other protection services.TIP # 12A01-13 effectively restates Section 212.05(1)(i)1.a. by providing the conditions under which the officer is not performing taxable detective, burglar protection, or other protection services but instead is providing law enforcement and public safety services.  It also points out that when the law enforcement officer performs these law enforcement and public safety services, the law enforcement officer's use of agency-issued equipment, including a patrol car, gun, or uniform, will not be considered a taxable rental under Florida's sales and use tax laws as no transfer of control or possession to the hiring party for the duty detail exists. Please contact me at 954-944-3929 or nrumbak@rumbaklaw.com if you want to further discuss these issues.