TAA 22-A 021R Impact-Resistance Doors, Garage Doors, and Windows

QUESTION 1: Does the tax exemption extend to other integrated window and door materials such as mullions, trim, headers, thresholds, jambs, trickle vents, closer mechanisms and inserts if purchased at the same time and intended for use with the corresponding impact-resistant windows and doors? 

ANSWER 1: The exemption applies to retail sales of impact-resistant windows, doors, or garage doors sold as a set or unit that includes integrated window and door materials intended for use with the corresponding impact-resistant windows and doors when sold for a single charge. Charges for separately stated window and door materials do not qualify for the exemption period. This question and answer are applicable to the other questions and answers presented herein. 

QUESTION 2: Does the term “retail sale” as defined in Section 212.02(14)(a), F.S., extend to the purchase and use of impact-resistant window and door materials by real property improvement contractors for use in supply and install contract jobs? 

ANSWER 2: Yes. Based on the facts provided, the Taxpayer “performs contracts for the improvement of real property.” The Taxpayer’s purchase of materials to complete the job is a retail sale. 

QUESTION 3: Does the exemption extend to orders made and accepted during the exemption period pursuant to a binding purchase contract, where title, possession, control, and delivery will occur after the exemption period where any delay in delivery is beyond the control of the purchaser? 

ANSWER 3: A sale takes place when the right of the purchaser to possession arises. Absent documentation to the contrary, the right to possession is assumed to arise at the time of payment. 

QUESTION 4: Does the exemption extend to orders made and accepted pursuant to a binding purchase contract prior to [the] effective date of the exemption period, but delivered during the exemption period where title, possession and control will occur within the exemption period? 

ANSWER 4: In order to qualify for the exemption, the retail sale of the product must occur during the exemption period. Absent documentation that supports that the right of the purchaser to possession occurred at the time of order, the right to possession is assumed to arise at the time of payment.

QUESTION 5: Does a Notice of Acceptance issued by_________  or Florida Product Approval issued by the Department of Business and Professional Regulation satisfy this requirement?

ANSWER 5: Yes, the Notice of Acceptance issued by _________ and the Florida Product Approval issued by the Department of Business and Professional Regulation both identify the _________  as “impact-resistant.”

QUESTION 6: Does the Department have suggested documentation the retailer should maintain to substantiate the sale was in-fact impact resistant windows or doors? 

ANSWER 6: Section 52, of Chapter 2022-97, Laws of Florida, does not require an affidavit or exemption certificate to be presented by the purchaser or maintained by the selling dealer. As a matter of documentation, the retailer may maintain available documentation that identifies that the door, garage door, or window is rated or classified as “impact resistant.” 

December 15, 2022

Technical Assistance Advisement – TAA #: 22A-021R

Sales and Use Tax –

FEI No. _________

BP #: _________

Section 52, of Chapter 2022-97, Laws of Florida

Emergency Rule 12AER22-7, Florida Administrative Code (F.A.C.)

Rule 12A-1.051, F.A.C.

Dear  _________, This is in response to your letter dated August 12, 2022, requesting this Department’s issuance of a TAA pursuant to Section 213.22, F.S., and Chapter 12-11, Florida Administrative Code, regarding the Sales Tax Exemption Period on Impact-Resistant Doors, Garage Doors, and Windows, during the period of July 1, 2022 through June 30, 2024. Your request has been carefully examined, and the Department finds it to be in compliance with the requisite criteria set forth in Chapter 12-11, F.A.C. This response to your request constitutes a TAA and is issued to you under the authority of s. 213.22, F.S.

Stated Facts Your letter dated, August 12, 2022, provides the following in part: We represent a taxpayer who performs contracts for the improvement of real property in the state of Florida. In general, those contracts are for a fixed fee to supply and install impact-resistant storm windows and doors. Such contracts and services are described in Rule 12A-1.051, Florida Administrative Code. The Taxpayer pays sales tax on materials purchased for use on those contracts. 

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In order to meet the requirements for impact-rating the product approval documents detail the required components of the window and door systems such as mullions, trim, headers, thresholds, jambs, trickle vents, closer mechanisms, locking mechanisms and fasteners. These items are integral to the window and door systems however they are separately called out in the engineering drawings as field conditions will dictate exact quantity and dimensions. Without these items, the windows and doors would not achieve the required impact-ratings.

The Taxpayer is aware of the recent legislation effecting the taxability of impact-resistant storm windows and doors enacted in Section 52, Chapter 2022-97, Laws of Florida, amending Section 212.08, Florida statutes. Specifically, that legislation exempts from tax under Chapter 212, F.S. the retail sale of impact-resistant windows, and impact-resistant doors sold during the period July 1, 2022, through June 30, 2024. 

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Your letter dated August 12, 2022, included the following for review:

• Florida Product Approval issued by the Department of Business and Professional Regulation for products manufactured by  _________ (  _________). The approval includes Model “  _________.”
• Quotation _________; Project Name: _________; dated _________; prepared for the Taxpayer by _________.
• Quotation _________; Project Name: _________; dated _________; prepared for the Taxpayer by _________. 
• Notice of Acceptance issued by _________; Prepared for _________ for “_________ ; dated _________.”

On September 8, 2022, you provided the following for review: 

• Invoice # _________; dated _________; Issued by _________; billing the Taxpayer for purchases of “_________ .” 
• Invoice # _________; dated _________; Issued by _________; billing the Taxpayer for purchases of “_________ .” 
• Page 1 of 2 of invoice # _________; dated Issued by I _________; billing the Taxpayer for purchases including “_________ .” 
• Invoice # _________; Issued by _________; billing the Taxpayer for purchases.

* * * 

Your email dated September 8, 2022, provides that the invoice from  _________ is an example of “the sale of integrated components on the same invoice as the base window.” The invoice includes sales of “ _________ .” The invoice also lists separate items, such as “  _________,” _________ “  _________,”  _________“  _________,” _________ “  _________,” and “ _________ .” 

* * *

Quotations _________ and _________ provide the following items are included with the : “_________ .” The quotes also provide that the following glass description: “_________ ”_________ (_________ ).” The Florida Product Approval issued by the Department of Business and Professional Regulation and Notice of Acceptance issued by _________, confirm that the _________ are impact-resistant windows. 

Requested Advisement

Your request for technical assistance included several questions regarding the Florida Sales Tax Exemption Period on Impact-Resistant Doors, Garage Doors, and Windows. In response to your request, I will provide a general discussion of sales tax as it relates to the scenarios provided. I will then address your questions in the "conclusion" section of this letter.

Taxpayer Position 

The Department has previously ruled that windows, doors and integrated materials comprise a “single working unit” for the application of the local option discretionary sales tax. Applying this ruling consistently, all integrated window and door parts, components and accessory items should be exempted as they comprise a single working unit. Those integrated materials are called out in the product approval documents as being required to achieve the impact ratings. 

* * * 

In general, a retail sale is any sales transaction where the purchaser does not supply a resale certificate or claims a sale for resale exemption. 

* * * 

We believe these purchases controlled by a binding contractual agreement should be exempted based upon the date of the sale. Section 212.02(15)(a), F.S., defines a sale as any transfer of title or possession, or both, exchange, barter, license, lease, or rental, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration.

* * * 

Both governing agencies provide clear guidance of the required performance, specifications, design and installation of impact-ratings for windows and doors. Florida law recognizes and authorizes those agencies to issue ratings and mandate the use of those products. 

Law and Discussion 

The Sales Tax Exemption Period on Impact-Resistant Doors, Garage Doors, and Windows is established through the lawmaking authority of the Florida Legislature. The exemption period for the retail sale of impact-resistant doors, garage doors and windows is provided in section 52, of Chapter 2022-97, Laws of Florida, as follows:

The tax levied under chapter 212, Florida Statutes, may not be collected during the period from July 1, 2022, through June 30, 2024, on the retail sale of impact resistant windows, impact-resistant doors, and impact-resistant garage doors. 

The exemption from sales tax for the sale of impact doors, garage doors, and windows applies, so long as the door, garage door, or window is rated or classified as “impact resistant” and the retail sale of such a product is exempt from sales tax during the exemption period. 

* * *

Emergency Rule 12AER22-7, F.A.C., provides guidance regarding the administration of the holiday. The rule provides the following in part:

(1)(c) “Remote sale” means a retail sale of tangible personal property ordered by mail, telephone, the Internet, or other means of communication from a person who receives the order outside of this state and transports the property or causes the property to be transported from any jurisdiction, including this state, to a location in this state. For purposes of this emergency rule, tangible personal property delivered to a location within this state is presumed to be used, consumed, distributed, or stored to be used or consumed in this state. 

* * * 

Section 212.02(15) defines the term “sale” to include “[a]ny transfer of title or possession, or both, exchange, barter, license, lease, or rental, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration.” 

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Rule 12A-1.051, F.A.C., governs the taxability of the purchase, sale, or use of tangible personal property by contractors and subcontractors who purchase, acquire, or manufacture materials and supplies for use in the performance of real property contracts. Rule 12A-1.051(4), F.A.C., provides that real property contractors are generally considered to be the ultimate consumers or users of the tangible personal property they purchase to perform a real property contract (i.e., they are not reselling the tangible personal property). The stated general rule for real property contractors is that they should not charge tax to their customers, regardless of whether or not they itemize charges for materials or labor, because they are not engaged in the activity of selling tangible personal property. Real property contractors are considered the ultimate consumers of the materials and supplies they use to perform real property contracts; therefore, they must pay tax on the costs of those materials and supplies. 

You have provided that the Taxpayer “performs contracts for the improvement of real property . . . for a fixed fee to supply and install impact-resistant storm windows and doors.”

Invoice #s _________ and _________, provide that _________ received the orders from a location within Florida and are not considered to be remote sales, as defined by Emergency Rule 12AER22- 7(1)(c), F.A.C.

Conclusion 

It is important to note that the invoices submitted for review all predate the exemption period and therefore do not qualify as exempt products purchased at retail during the exemption period. The subject transactions serve as examples for purposes of determining the type of products and sales that qualify for exemption when purchased during the exemption period. Additionally, it is important to note that invoice # _________, issued by _________ustries, does not provide whether _________is rated or classified as “impact-resistant.” 

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Question 1: Does the tax exemption extend to other integrated window and door materials such as mullions, trim, headers, thresholds, jambs, trickle vents, closer mechanisms and inserts if purchased at the same time and intended for use with the corresponding impact-resistant windows and doors? 

Response 1: The exemption applies to retail sales of impact-resistant windows, doors, or garage doors sold as a set or unit that includes integrated window and door materials intended for use with the corresponding impact-resistant windows and doors when sold for a single charge. Charges for separately stated window and door materials do not qualify for the exemption period. This question and answer are applicable to the other questions and answers presented herein.

In this case, quotations _________ and _________ provide that 2 locks and a sweep latch are included with the _________. These items would be considered to be part of the retail sale of the window and would be exempt when purchased by the Taxpayer during the exemption period.

As noted above, invoice # _________, issued by _________, does not provide whether _________ is rated or classified as “impact-resistant.” As a result, the Department is unable to determine whether the sliding glass door qualifies as an exempt product during the exemption period.

Question 2: Does the term “retail sale” as defined in Section 212.02(14)(a), F.S., extend to the purchase and use of impact-resistant window and door materials by real property improvement contractors for use in supply and install contract jobs?

Response 2: Yes. Based on the facts provided, the Taxpayer “performs contracts for the improvement of real property.” The Taxpayer’s purchase of materials to complete the job is a retail sale. 

Question 3: Does the exemption extend to orders made and accepted during the exemption period pursuant to a binding purchase contract, where title, possession, control, and delivery will occur after the exemption period where any delay in delivery is beyond the control of the purchaser?

Response 3: Section 212.02(15), F.S., provides that a sale takes place when the right of the purchaser to possession arises. The Department will look to documentation between the buyer and seller to establish when a sale took place. Absent documentation to the contrary, the right to possession is assumed to arise at the time of payment. 

Question 4: Does the exemption extend to orders made and accepted pursuant to a binding purchase contract prior to [the] effective date of the exemption period, but delivered during the exemption period where title, possession and control will occur within the exemption period?

Response 4: In order to qualify for the exemption, the retail sale of the product must occur during the exemption period. Absent documentation that supports that the right of the purchaser to possession occurred at the time of order, the right to possession is assumed to arise at the time of payment. As noted, the invoices submitted for review all predate the exemption period and therefore do not qualify as exempt products purchased at retail during the exemption period.

Question 5: Emergency Rule 12AER22-7 defines “impact-resistant” as used in Chapter 212, F.S., to mean windows, doors, and garage doors “labeled as impact resistant or has an impact resistance rating”. Does a Notice of Acceptance issued by _________ or Florida Product Approval issued by the Department of Business and Professional Regulation satisfy this requirement?

Response 5: Yes, the Notice of Acceptance issued by and the Florida Product Approval issued by the Department of Business and Professional Regulation both identify the as “impact-resistant.” As noted, invoice # , issued by , does not provide whether is rated or classified as “impact-resistant.”

Question 6: Does the Department have suggested documentation the retailer should maintain to substantiate the sale was in-fact impact resistant windows or doors? 

Response 6: Section 52, of Chapter 2022-97, Laws of Florida, does not require an affidavit or exemption certificate to be presented by the purchaser or maintained by the selling dealer. As a matter of documentation, the retailer may maintain available documentation that identifies that the door, garage door, or window is rated or classified as “impact resistant.”

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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 on 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 than 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 ten (10) days of the date of this letter.

Brinton Hevey 

Technical Assistance & Dispute Resolution