February 27, 1989
COMPTROLLER'S MEMORANDUM NO. 14 (1988-89)
SUBJECT: SALES TAX ON PURCHASES BY PERSONS IN TRAVEL STATUS
State agencies have entered into agreements
with various companies such as Citicorp Diners Club, Inc., for
the issuance of corporate travel cards to State officers, employees
and independent contractors. The agreements specify that the
cards are to be used only to charge purchases of goods and services
which are necessary for or incidental to travel for State business
purposes. These charge cards are authorized by state agencies,
but the payment of charges on the cards is the responsibility
of the individual card holder.
Section 212.08(6), Florida Statutes,
provides in part that sales made to a state agency are exempt
from sales tax when payment for the sale is made directly by the
state agency. However, the law further provides that this exemption
does not inure to any transaction otherwise taxable when payment
is made by a state employee by any means even though that employee
is subsequently reimbursed by the state agency.
Based on this law and the Department
of Revenue's interpretation, all purchases made by holders of corporate travel
cards authorized by state agencies are not exempt from sales tax
by virtue of the fact that the amount of the purchases are subsequently
reimbursed by a state agency. Proper claims for such payments
of sales tax made, will be honored by this office and reimbursed
to the traveler.
If you have any questions regarding
the applicability of sales tax to such purchases, please call
the Bureau of Auditing at 410-9194, Suncom 210-9194.
