The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 830
INTRODUCER: Senator Hooper
SUBJECT: Sales Tax
DATE: November 29, 2021
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Harmsen McKay CM Pre-meeting
2. FT
3. AP
I. Summary:
SB 830 decreases the applicable sales tax on the occasional or isolated sale of a mobile home by
calculating the sales tax on 50 percent of the sales price, instead of 100 percent. Additionally, the
bill exempts from any sales tax those mobile homes that are purchased in an occasional or
isolated sale by an individual who affirms that he or she will obtain an RP (real property) decal,
evincing the purchaser’s intent to permanently affix the mobile home to land and to pay annual
county tax collector assessments on the mobile home.
The Revenue Estimating Conference has not yet reviewed the economic impact of this bill.
The bill takes effect upon becoming law.
II. Present Situation:
Florida Sales and Use Tax
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal
property,
1
admissions,
2
transient rentals,
3
and a limited number of services. Chapter 212, F.S.,
contains provisions authorizing the levy and collection of Florida’s sales and use tax, as well as
the exemptions and credits applicable to certain items or uses under specified circumstances.
Sales tax is added to the price of the taxable good or service and collected from the purchaser at
the time of sale.
4
1
Section 212.05(1)(a)1.a., F.S.
2
Section 212.04(1)(b), F.S.
3
Section 212.03(1)(a), F.S.
4
Section 212.07(2), F.S.
REVISED: BILL: SB 830 Page 2
Counties are authorized to impose local discretionary sales surtaxes in addition to the state sales
tax.
5
A surtax applies to “all transactions occurring in the county which transactions are subject
to the state tax imposed on sales, use, services, rentals, admissions, and other transactions by
[ch. 212, F.S.], and communications services as defined in ch. 202.”
6
The discretionary sales
surtax is based on the tax rate imposed by the county where the taxable goods or services are
sold or delivered. Discretionary sales surtax rates currently levied vary by county in a range of
0.5 to 2.5 percent.
7
Generally, tangible personal property that is sold in an isolated or occasional sale is exempt from
the state sales tax.
8
A seller makes an isolated or occasional sale if the sale or series of sales
occurs no more than twice during any 12-month period.
9
A seller is required to register as a
dealer if he or she completes more than three sales of the same type of item during a 12-month
period. The sale of mobile homes, aircrafts, boats, and motor vehicles are expressly excluded
from the isolated or occasional state sales and use tax exemption.
10
Florida Taxation of Mobile Homes
Mobile homes, aircrafts, boats, and certain motor vehicles are classified as tangible personal
property
11
and are subject to a 6 percent sales tax at each sale, including an occasional or isolated
sale.
12
In addition, a Florida mobile home is taxed annually in one of the following three ways:
13
Assessed and taxed as real property by the county property appraiser;
Subjected to an annual license tax by the county tax collector’s office; or
Assessed and taxed as tangible personal property by the county property appraiser.
If the mobile home’s owner permanently affixes the mobile home to land that he or she owns,
then the mobile home may be considered real property.
14
The local property appraiser assesses
and then lists the mobile home as real property based on his or her findings. If the mobile home
is real property, the owner must make a one-time purchase of a $3 RP decal from his or her local
county tax collector’s office.
15
The RP decal subjects the mobile home to annual assessment and
taxation by the county property appraiser. If the mobile home continues to be affixed to the land,
5
Section 212.055, F.S.
6
Section 212.054(2)(a), F.S.
7
Office of Economic and Demographic Research, Florida Tax Handbook, 227-228 (2021), available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2021.pdf (last visited Nov. 29, 2021).
8
Fla. Admin. Code R. 12A01.037(1). See also, s. 212.02(2), defining “business” as activity engaged in by a person with the
object of private or public gain, benefit, or advantage.
9
Fla. Admin. Code R. 12A-1.037(3)(b).
10
See, s. 212.05(1)(a)1.b., and Fla. Admin. Code R. 12A-1.037(2)(a)1.
11
Section 212.02(19), F.S.
12
Section 212.05(1)(a)1.b., F.S.
13
See generally, Florida Department of Revenue, Form 800047, Taxation of Mobile Homes in Florida (rev. Dec. 2017),
available at https://floridarevenue.com/Forms_library/current/gt800047.pdf (last visited Nov. 29, 2021).
14
Section 320.015, F.S.
15
While the RP decal is issued by local county property appraisers, it is provided by the Department of Highway Safety and
Motor Vehicles to the county tax collectors. The $3 fee is distributed as follows: $2.50 to the tax collector, .25 cents to the
property appraiser, and 25 cents to the DHSMV. Section 320.0815(2), F.S. See, e.g., Florida Department of Revenue,
Declaration of Mobile Home as Real Property: Form DR-402 (Aug. 1995),
https://floridarevenue.com/property/Documents/dr402.pdf (last visited Nov. 29, 2021). BILL: SB 830 Page 3
it is considered real property, and therefore taxed as such (exempt from subsequent sales and use
tax) at subsequent sales.
16
A mobile home that is affixed to land that is owned by someone other than the mobile home’s
owner is subject to an annual license tax, which is levied by the Department of Highway Safety
and Motor Vehicles, and can be purchased at the local county tax collector’s office.
17
This
license tax varies from $20 to $80, based on the mobile home’s length.
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Any mobile home that qualifies for, but fails to pay, the license tax, is assessed and taxed as
tangible personal property by the county property appraiser.
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The mobile home is then placed on
the tangible personal property assessment roll and is taxed as such for the year. If the owner
purchases an annual license tax for the mobile home before January 1 of the next year, then the
mobile home will be removed from the tangible personal property assessment roll, and would not
be subject to further tangible personal property taxation.
III. Effect of Proposed Changes:
The bill revises the method in which tax is calculated and levied for the occasional or isolated
sale of mobile homes. First, it reduces from 100 percent to 50 percent the total bases cost on
which the 6 percent state sales and use tax is calculated in an occasional or isolated sale. Second,
the bill exempts the occasional or isolated sale of a mobile home from any state sales and use tax
if the purchaser signs an affidavit which states that he or she intends to seek an “RP” series
sticker from their county tax collector pursuant to s. 320.0815(2), F.S. The “RP” sticker re-
classifies the mobile home as real property instead of tangible personal property, and subjects the
mobile home to an annual real property assessment by the county property appraiser in the same
manner as a permanent home that was built on-site.
A mobile home dealer will not likely qualify for this sales and use tax reduction, assuming that
he or she makes more than two mobile home sales in a 12-month period. The sales and use tax
reduction and exemption will likely apply to sales between two individuals who are not engaged
in the usual business of selling a mobile home.
The bill takes effect upon becoming law.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, s. 18 of the Florida Constitution governs laws that require counties and
municipalities to spend funds, limit the ability of counties and municipalities to raise
revenue, or reduce the percentage of state tax shared with counties and municipalities.
16
Florida Department of Revenue, SB 830 Agency Analysis (Nov. 16, 2021) (on file with the Senate Committee on
Commerce and Tourism).
17
Sections 320.015 and 320.0815(2), F.S. See also, Florida Department of Revenue, supra note 13.
18
Section 320.08(11), F.S.
19
Florida Department of Revenue, supra note 13. BILL: SB 830 Page 4
Subsection (b) of s. 18, Art. VII of the Florida Constitution provides that except upon
approval of each house of the Legislature by two-thirds vote of the membership, the
legislature may not enact, amend, or repeal any general law if the anticipated effect of
doing so would be to reduce the authority that municipalities or counties have to raise
revenue in the aggregate, as such authority existed on February 1, 1989. However, the
mandates requirements do not apply to laws that have an insignificant impact, which is
$2.2 million or less for Fiscal Year 2022-2023.
The mandates provision of Art. VII, Section 18, of the Florida Constitution may apply,
however, the Revenue Estimating Conference has not yet determined a fiscal impact of
the bill.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
Not applicable.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
The purchaser of a mobile home from a non-dealer individual would pay reduced state
sales and use tax, which would be calculated on 50 percent of the sales price instead of
the full sales price.
C. Government Sector Impact:
The Revenue Estimating Conference has not yet determined a fiscal impact of the bill,
however the state will likely realize a loss in sales and use tax dollars on the sale of
mobile homes.
The Department of Revenue may be required to undergo rulemaking to update Rule 12A-
1.007 of the Florida Administrative Code.
BILL: SB 830 Page 5
The Department of Revenue may incur expenses related to creating and issuing a
Taxpayer Information Publication (TIP) to alert eligible taxpayers about the tax reduction
and exemption.
VI. Technical Deficiencies:
None.
VII. Related Issues:
The bill exempts the purchase of a mobile home in an occasional or isolated sale from any state
sales and use tax if the purchaser signs an affidavit stating that he or she intends to seek an “RP”
sticker that would subject the mobile home to an annual assessment by the county tax collector.
There is no verification process included in the bill, which may allow certain mobile home
purchasers to evade paying either the state sales and use tax or the county’s property tax.
This bill takes effect upon becoming law. The Department of Revenue may require additional
time to generate notices about the change in taxes applicable to mobile home sales.
VIII. Statutes Affected:
This bill substantially amends s. 212.05 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.