Sales and Use Tax TAA 13A-020 Cemetery Monuments
QUESTION: Is the sale and installation of a cemetery monument subject to
sales and use tax?
ANSWER: No sales tax is due on the sale of a monument or a headstone to
be installed at the purchaser’s designated location. When a provider
of burial services or monuments, such as funeral homes or sellers of monuments,
purchases items used in providing burial services or installing monuments,
the provider is required to pay tax on the cost of those items used or
installed.
August 29, 2013
Re: Technical Assistance Advisement – TAA 13A-020 Sales and Use
Tax – Cemetery Monuments
Subsection: 212.08(2)(7), Florida Statutes (F.S.) Rules: 12A-1.035, Florida Administrative Code (F.A.C.) Petitioner: XXX [hereinafter “Taxpayer”] XXX
[hereinafter “Monument Company”]
Dear XXX:
This letter is a response to your undated petition received in this office
on XXX, for the Department's issuance of a Technical Assistance Advisement
("TAA") concerning the above referenced party and matter. Your
petition has been carefully examined and the Department finds it to be
in compliance with the requisite criteria set forth in Chapter 1211, Florida
Administrative Code. This response to your request constitutes a TAA and
is issued to you under the authority of section 213.22, F.S.
Issue
Whether the sale and installation of a cemetery monument is subject to
sales and use tax.
Presented Facts
Taxpayer purchased a monument from XXX on XXX. The contract lists the
price of the monument as $XXX, and XXX percent Florida sales tax of $XXX.
The terms of the contract call for the monument to be delivered or installed
no later than XXX in the specified cemetery.
Law and Discussion
Section 212.05, F.S., generally imposes tax on the sale of tangible personal
property. Section 212.08(2)(a), F.S., provides an exemption for funerals.
Rule 12A-1.035, F.A.C., provides guidance on the funeral exemption, and
it states in pertinent part as follows:
(2)(a)1. The following at-need sales to consumers by any person licensed
or registered under the provisions of Chapter 470 or 497, F.S., are not
subject to tax:
a. The sale of funeral or burial services;
b. The sale of funeral or burial merchandise sold in conjunction with
the sale of a funeral or burial service; and
c. The sale of funeral or burial merchandise that is installed at the
consumer’s designated location.
2. The sale of funeral or burial merchandise is presumed to be made in
conjunction with the sale of funeral or burial services when the seller
of the merchandise is required to deliver the merchandise to any person
licensed to provide funeral or burial services.
3. The purchase of funeral or burial merchandise by any person licensed
or registered under the provisions of Chapter 470 or 497, F.S., for use
in providing funeral or burial services or for installation at the consumer’s
designated location is subject to tax at the time of purchase.
(b) Charges to a consumer for funeral or burial merchandise sold under
the provisions of a pre-need contract authorized by Chapter 497, F.S.,
are not subject to tax. When merchandise is purchased by any person licensed
under Chapter 470, F.S., or by a holder of a Certificate of Authority
issued pursuant to Chapter 497, F.S., to be provided at the time of death
of the individual for whom the contract was purchased, tax is due at the
time of purchase.
(3)(a) Monuments, monument services, and related monument products for
the purposes of memorializing human remains are not subject to tax when:
1. The merchandise is sold in conjunction with the sale of a funeral or
burial service; or
2. The merchandise is installed at the consumer’s designated location.
(b) The following sales of monuments, monument services, and related monument
products sold for the memorialization of animal remains are not subject to tax:
1. The sale of services for the final disposition of animal remains;
2. The sale of merchandise sold in conjunction with services for the final
disposition of animal remains; and
3. The sale of monuments, monument services, and related monument products
sold for the memorialization of animal remains that are installed at the
purchaser’s designated location.
(c) The following are examples of sales of monuments, monument services,
and related monument products to consumers for the memorialization of
human remains, or for the memorialization of animal remains, that are
not subject to sales tax. This list is not intended to be an exhaustive list.
1. The sale of monuments, copings, or bases that are installed with or
without a foundation or base;
2. The sale of a marker installed at the grave site or affixed to real
property improvements, such as niches, crypts, benches, mausoleums, and
other cemetery improvements;
3. The building of a mausoleum, columbarium, or below ground crypt;
4. The construction of foundations for monuments;
5. The sale of lettering installed or affixed to real property improvements,
such as niches, crypts, benches, mausoleums, and other cemetery improvements;
6. Charges for the inscription of a monument, marker, crypt, or niche;
7. Charges for the repair of monuments when the repair is made at the
site of installation;
8. Charges for cleaning monuments.
As provided above, no sales tax is due on the sale of a monument or a
headstone to be installed at the purchaser’s designated location.
When a provider of burial services or monuments, such as funeral homes
or sellers of monuments, purchases items used in providing burial services
or installing monuments, the provider is required to pay tax on the cost
of those items used or installed.
XXX should not have charged tax on the sale and installation of the monument
as a separate line item in the contract.
Conclusion
This response constitutes a Technical Assistance Advisement under Section
213.22, F.S., which is binding on the Department only under the facts
and circumstances described in the request for this advice, as specified
in Section 213.22, F.S. Our response is predicated upon those facts and
the specific situation summarized above. You are advised that subsequent
statutory or administrative rule changes or judicial interpretations of
the statutes or rules upon which this advice is based may subject similar
future transactions to a different treatment from that which is expressed
in this response.
You are further advised that this response, your request, and related
backup documents are public records under Chapter 119, F.S., and are subject
to disclosure to the public under the conditions of Section 213.22, F.S.
Confidential information must be deleted before public disclosure. In
an effort to protect confidentiality, we request you provide the undersigned
with an edited copy of your request for Technical Assistance Advisement,
the backup material and this response, deleting names, addresses, and
any other details which might lead to identification of the taxpayer.
Your response should be received by the Department within 10 days of the
date of this letter.
Sincerely,
Sara D. Faulkenberry
Senior Tax Specialist
Technical Assistance and Dispute Resolution
Control # 143006