Exhibit_J_-_Sales_Tax_Exemption_Procedures_26-B-77IF.pdf
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- Solicitation number
- 26-B-77IF
- Issued by
- Volusia County, Florida
About this file
This is a Sales Tax Exemption Procedure document issued by the County of Volusia, Florida for the Daytona Beach International Airport Taxiway P3 and P4 Improvements project. The procedure establishes the process for the Prime Contractor to obtain sales tax exemptions on materials and services purchased for the construction project located at 700 Catalina Drive, Daytona Beach, Florida. The County has been issued a Consumer's Certificate of Exemption by the State of Florida Department of Revenue that exempts it from paying Florida sales and use tax on real property, tangible personal property, and services. The document outlines a five-step workflow for requisitions and purchase orders: the Prime Contractor submits completed requisition forms within 15 calendar days of Notice to Proceed, the County processes the requisitions and issues deductive change orders reducing the contract price by the sales tax savings, purchase orders are issued to vendors with the County Tax Exemption Certificate, vendors invoice the County upon material delivery, and the County Accounting department pays vendors directly. The Prime Contractor must provide authorized representatives' information, submit complete requisitions with vendor details and pricing, maintain records of all purchases, and ensure vendors are registered with the County and provide their Taxpayer Identification Numbers.
The County assumes responsibility for issuing timely purchase orders, providing requisition and change order forms, assigning and processing all documents, and designating a contact person for status inquiries. The Prime Contractor is responsible for submitting accurate and complete requisitions within required timeframes, receiving and inspecting materials, verifying invoices against delivered goods, approving conforming materials within five business days, maintaining builder's risk insurance listing the County as loss payee, and making all prompt payment discounts available to the County. The procedure complies with Florida Administrative Code Rule 12A-1.094 and operates under Florida's Prompt Payment Act (ss. 218.70-218.80, Florida Statutes), ensuring that the County receives the full benefit of sales tax savings through deductive change orders to the Prime Contractor's contract price.
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Sales Tax Exemption Procedure Page 1 of 4
SALES TAX EXEMPTION PROCEDURE
FOR CONSTRUCTION MANAGEMENT PROJECTS
Background
The State of Florida Department of Revenue has issued the County of Volusia (hereinafter “County”) a Consumer’s Certificate of Exemption. This Certificate exempts the County from the payment of Florida sales and use tax on real property rented, transient rental property rented, tangible personal property purchased or rented, or services purchased.
The following is a sample sales tax savings computation:
Description Value Roofing materials from vendor (paid by County): $100,000.00 6.5% Sales tax savings (on the first $5,000.00): $325.00 6.0% Sales tax savings (on remaining price): $5,700.00 Total: $106,025.00
Deductive change order to Prime Contractor's awarded contract price for the project : $106,025.00
Total sales tax savings: $6,025.00
Code Compliance
This Procedure complies with the Rule 12A-1.094 of Florida Administrative Code.
Definitions
1. CONSTRUCTION CHANGE ORDER (“CO”). A document issued to the Prime Contractor by County’s Purchasing and Contracts Division modifying the contract price or time.
2. FRIEGHT ON BOARD. F.O.B. Destination. Title shall pass to the County of Volusia on delivery of the conforming goods to the designated location. The risk of loss or damage in transit shall be upon the vendor/seller, delivery shall not be complete until the goods and/or services have been received, inspected, and accepted by the County of Volusia.
3. PROJECT. Daytona Beach International Airport Taxiway P3 an P4 Improvements located at 700 Catalina Drive, Daytona Beach, Florida 32114.
Sales Tax Exemption Procedure Page 2 of 4
4. PURCHASE ORDER (“PO”). A document issued to the Vendor by the County Purchasing and Contracts Division, after receipt of a properly completed and executed
REQUISITION.
5. REQUISITION. A document issued by the County and submitted by the Prime Contractor to the County Construction Manager for material qualified for sales tax exemption.
6. RQS. Electronic request through the County’s accounting system for goods and/or services with information necessary to create a PURCHASE ORDER.
FLOW OF DOCUMENTS
Step 1. REQUISITION ORIGINATION. Within 15 calendar days of the Notice to Proceed, the Prime Contractor shall submit to the Consultant (if applicable) and County Construction Manager the completed REQUISITION form(s) for approval. The REQUISITION shall be completed and signed by the designated authorized representative of the Prime Contractor. If the vendor(s) listed on the REQUISITION form(s) is/are not registered with the County, the Prime Contractor shall instruct them to register and request copies of the Vendor’s Taxpayer Identification Number (TIN) and Certification to attach to the REQUISITION form (s). Note: REQUISITION forms may be submitted prior to the Notice to Proceed, but will not be processed until after the Notice to Proceed is issued.
Step 2. RECEIPT OF REQUISITION BY COUNTY. The REQUISITION shall be date stamped, reviewed and delivered for processing into a PO along with a deductive CHANGE ORDER to Prime Contractor’s contract price for the material plus applicable sales tax.
Step 3. PROCESSING THE REQUISITION. The deductive CHANGE ORDER will be processed prior to the creation of the PO to the Vendor. Upon receipt of an executed deductive CHANGE ORDER, the County Construction Manager shall initiate an RQS in the County’s accounting system, which will be processed into a PO to the Vendor.
Purchasing and Contracts will E-mail the PO to the Vendor and the CO to the Prime Contractor. A copy of any special instructions and County Tax Exemption Certificate will be E-mailed with the PO.
Step 4. INVOICE PROCESSING. The Vendor shall issue an invoice to the County after the material is delivered to the site. The Prime Contractor shall receive the invoice, verify it against the delivered material via physical inspection, approve it by signature, and then forward it, within five (5) business days of the date receipt of the invoice, to the County Construction Manager. The County Construction Manager shall then verify, approve by signature, and submit it for payment by the County.
Step 5. DIRECT PAYMENT. County Accounting shall pay Vendor directly.
Sales Tax Exemption Procedure Page 3 of 4
County Responsibilities
1. County shall issue POs in a timely fashion.
2. County shall provide the proper REQUISITION and CO forms to the Prime
Contractor, if needed; however, the Prime Contractor’s forms are acceptable provided it contains all the information required in paragraph 2 of Prime Contractor’s Responsibilities.
3. County shall assign, process, and issue POs and COs as required.
4. County shall return to the Prime Contractor all documents that are incomplete or incorrect.
5. County shall provide a designated contact person with whom direct inquiries may be made regarding the status of REQUISITIONS, POs, and COs.
Prime Contractor Responsibilities
1. Prior to the Notice to Proceed, the pre-construction meeting will be conducted. At the meeting the Contractor shall provide a list of typed names, signatures and contact information of those representatives duly authorized to act on behalf of the Prime Contractor to process requisition and change order requests for purchases made for this project.
2. Contractor shall submit a complete and correct requisition for processing. The
REQUISITION shall include, but not be limited to:
a. Firm name, contact, address, telephone, fax and email
b. Shipping address
c. Item no., Quantity, Unit, and Unit Price of each item to be ordered
d. Description (Brand, model & specification number)
e. Extended and total price of order
f. Authorized signatures
g. Any special instructions
h. Completed TIN and Certification form, required
4. Contractor shall submit PO changes to the County construction manager for approval as required using approved format.
5. Contractor shall receive, inspect, test (if appropriate), store, and secure material ordered. Approve invoices after verifying receipt of conforming material.
6. Contractor shall advise County of any discrepancies in a timely manner prior to payment by County Finance. All prompt payment discounts will accrue solely to the County’s benefit. All payments by the County are subject to Florida’s Prompt Payment Act (ss. 218.70-218.80, Florida Statutes).
Sales Tax Exemption Procedure Page 4 of 4
7. Contractor shall add to the Builder’s Risk insurance, the “County of Volusia is a loss payee for the Project.” Such insurance shall cover the full value of items received and accepted.
8. Contractor shall maintain records of all items purchased under this Procedure.
These records shall be available for inspection upon County’s request.
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