1. (1) (a) A gross receipts tax is levied at a rate of 2 percent on the total receipts received by dry-cleaning facilities, as defined in Section 376.301(14), F.S., and received by dry drop-off facilities, as defined in Section 376.301(16), F.S., for the privilege of engaging in the business of dry-cleaning or laundering of clothing or other fabrics in Florida.

2. (b) The gross receipts tax does not apply to receipts from:

   1. Coin-operated laundry machines;

   2. Coin-operated dry-cleaning machines, unless operated at an establishment primarily engaged in the business of dry-cleaning clothing and other fabrics;

   3. Laundering done on a wash, dry, and fold basis;

   4. Uniform rental companies; or

   5. Linen supply companies.

3. (2) Gross receipts arising from the charges for services subject to the gross receipts tax to any person who imposes charges to others for the same services are exempt. Dry-cleaning and dry drop-off facilities must document exempt sales made for the purposes of resale by obtaining a resale certificate from each dry-cleaning or dry drop-off facility that purchases services for purposes of resale of the same service. The selling facility is only required to obtain one resale certificate from each customer making purchases for the purposes of resale. The following is a suggested format of a resale certificate:

   RESALE CERTIFICATE FOR GROSS RECEIPTS TAX

   ON LAUNDERING AND DRYCLEANING SERVICES

   This is to certify that the services purchased on or after ________ (date) from _______________ (name) are being purchased for the purposes of resale pursuant to Section 376.70(6), F.S.

   NAME OF PURCHASING FACILITY:__________________________________________________________________________

   PURCHASING FACILITY’S ADDRESS:________________________________________________________________________

   CERTIFICATE OF REGISTRATION NUMBER: _________________________________________________________________

   EFFECTIVE DATE OF CERTIFICATE: ________________________________________________________________________

   I understand that if I fraudulently issue this certificate to evade the payment of gross receipts tax on dry-cleaning services I will be liable for payment of the tax directly to the Department plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

   _____________________________________________________

   SIGNATURE OF PURCHASER OR PURCHASER’S AGENT

   _____________________________________________________

   TITLE

   _____________________________________________________

   DATE

4. (3) Dry-cleaning facilities and dry drop-off facilities that include in the total retail charge to a customer the cost of the tax shall separately state the tax on the customer’s bill. However, the total charged to the customer will be considered a part of the gross receipts upon which the tax is calculated. The dry-cleaning facility or dry drop-off facility remains fully and completely liable for the tax, even if the tax is separately stated as a line item or component of the total bill. When the tax is separately stated as a line item or component of the customer’s bill, the customer’s bill is required to contain a statement that the imposition of the tax was requested by the Florida Dry Cleaners Coalition.

5. (4) (a)1. Example: ABC dry-cleaning facility’s total receipts from a customer are $100 for dry-cleaning services. The bill received by the customer indicates that the total charge is $100. The tax rate is 2 percent. ABC dry-cleaning would remit a tax of $2.00 to the Department, 2 percent of the $100 charge to the customer.

   2. Example: ABC dry-cleaning facility’s total receipts from a customer are $102.00 for dry-cleaning services. The tax rate is 2 percent. The bill received by the customer indicates a charge of $100 for dry-cleaning services and a separate line item charge of $2.00 for the gross receipts tax on dry-cleaning. The total charge to the customer is $102.00. ABC dry-cleaning would remit a tax of $2.04 to the Department, 2 percent of the $102.00 charge to the customer. The customer’s bill is required to contain a statement that the imposition of the tax was requested by the Florida Dry Cleaners Coalition.

6. (b) Example: ABC Cleaners operates a dry-cleaning facility that receives items for dry-cleaning and laundering at the main wet location. It also owns and operates three dry drop-off facilities (satellite locations) which also take in items for dry-cleaning and laundering at the dry-cleaning facility. ABC Cleaners must remit the tax on all the receipts received from its customers, including the receipts from the dry-cleaning facility and the three dry drop-off facilities. The three dry drop-off facilities are not required to issue a resale certificate to the dry-cleaning facility.

1. (c) Example: XYZ Cleaners operates a dry-cleaning facility that receives items for dry-cleaning and laundering at the main wet location. It also owns and operates one dry drop-off facility (satellite location) that also takes in items for dry-cleaning and laundering at the dry-cleaning facility. XYZ Cleaners also dry-cleans and launders items for two independent dry drop-off facilities. XYZ Cleaners must remit the tax on all the receipts received from its customers, including the receipts from the dry-cleaning facility and the one dry drop-off facility that it owns. The two independent dry drop-off facilities are required to be registered with the Department for the gross receipts tax and to issue a resale certificate to XYZ Cleaners. XYZ Cleaners must obtain resale certificates from the two independent dry drop-off facilities to exempt the receipts from the two independent dry drop-off facilities.

1. (d) Example: DEF, a dry drop-off facility pays for XYZ, a dry-cleaning facility, to dry-clean and launder clothing for its customers. DEF is required to be registered for the gross receipts tax on dry-cleaning and to issue a resale certificate to XYZ. The tax due on the transaction is on the receipts received by DEF from its customers.

Rulemaking Authority 213.06(1), 376.70(6)(b) FS. Law Implemented 376.301(14), (15), (16), (23), 376.70, 376.71 FS. History–New 6-19-96, Amended 6-28-05.