February 27, 1989

COMPTROLLER'S MEMORANDUM NO. 14 (1988-89)

SUBJECT: SALES TAX ON PURCHASES BY PERSONS IN TRAVEL STATUS

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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.