1. (1) As used in this rule:

   1. (a) “Consumer” means any person legally authorized to make financial arrangements for the purchase of a funeral or burial service or funeral or burial merchandise.
   2. (b) “Funeral service” or “burial service” means any observance, ceremony, or service in connection with the final disposition, memorialization, interment, entombment, or inurnment of human remains.
   3. (c) “Funeral merchandise” or “burial merchandise” means any tangible personal property commonly sold or used in connection with the final disposition, memorialization, interment, entombment, or inurnment of human remains. Examples of such items are caskets, burial containers, vaults, alternative containers, cremation containers, urns, monuments, private mausoleums, clothing, flowers, shrubs, benches, vases, memory folders, acknowledgment cards, prayer cards, and register books. This list is not intended to be an exhaustive list.

2. (2) (a)1. The following at-need sales to consumers by any person licensed under the provisions of Chapter 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 under the provisions of Chapter 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.

3. (b) Charges to a consumer for funeral or burial merchandise sold under the provisions of a preneed contract authorized by Chapter 497, F.S., are not subject to tax. When merchandise is purchased by any person licensed under 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.

4. (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.

5. (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.

6. (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.

7. (4) The sale of funeral or burial merchandise that does not meet the requirements of subsection (2) or (3) is subject to tax. Any person who makes such sales is required to register with the Department as a dealer and collect the tax from the consumer. (See Rule 12A-1.060, F.A.C.) Tax previously paid by the dealer on the purchase of merchandise may be taken as a credit against the sales tax collected at the time of sale. The dealer should remit to the Department the difference between the amount of tax collected and the amount of tax paid on the purchase of the merchandise.
8. (5) Any person who separately itemizes and collects sales tax on any contract for the sale of funeral or burial merchandise must remit the tax to the Department at the time of execution of the contract. (See Rule 12A-1.056, F.A.C.)

9. (6) An Annual Resale Certificate (Form DR-13) may be extended to the selling dealer to purchase funeral or burial merchandise tax exempt for the purposes of resale when:

   1. (a) The applicable tax is collected from the consumer at the time of sale;
   2. (b) The merchandise is not purchased for use by any person licensed under Chapter 497, F.S., to provide funeral or burial services to a consumer; and,
   3. (c) The merchandise is not installed at the consumer’s designated location.
10. (7) The purchase of tools, supplies, and other tangible personal property used in providing funeral or burial services, or in preparing funeral or burial merchandise for sale or for installation, is subject to tax.
11. (8) Any cemetery that holds a Consumer’s Certificate of Exemption (Form DR-14) issued by the Department may extend a copy of its certificate to the selling dealer to purchase funeral or burial merchandise, tools, supplies, and other tangible personal property for its own use tax exempt.

Rulemaking Authority 212.07(1)(b), 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(a), (c), 212.06(1), 212.08(2), (7)(v) FS. History‒New 10-7-68, Amended 6-16-72, Formerly 12A-1.35, Amended 6-19-01, 5-9-13.