In the State of Florida, one thing’s for sure: the tax code is complicated. I should know – I used to work for the Department of Revenue. In fact, many businesses are unaware of overpayments they’ve made!
Here are a few places where many businesses find they’ve overpaid sales tax, and have gotten refunds. These are most applicable in fixed asset intensive industries. Construction, banking and law are just a few of the industries where these credits could apply.
- Did you have a major software purchase/implementation in the past three years? Software vendors or consultants often incorrectly apply sales tax. If they charged you tax in error, it’s subject to refund or credit.
- Did you make building mprovements or repairs, like HVAC work, electrical work, plumbing or landscaping? Contractors often incorrectly apply sales tax to this type work. Amounts charged in error are subject to refund or credit.
- Your vendors are not supposed to charge the county sales tax on amounts above $5,000 of certain transactions, but we often see people overcharged. If you paid more, you’re eligible for a refund or credit.
- Do you own property in an enterprise zone? You should make sure – there are benefits that can apply such as job credits, sales tax refunds on building materials, and sales tax refunds on FF&E.
In some cases, refunds can be claimed up to three years back. And even if you can’t change what you missed out on in the past, at least you can ask your tax professional about credits you can claim in future tax years!