Florida Independent Automobile

Dealers Association

Dealer
OnLine
PreLicense
Manual

08/12
 FIADA

This Training Manual Was Produced By The

Florida Independent Automobile Dealers Association, Inc.
Education Department
1840 Fiddler Court
Tallahassee, Florida 32308
Phone: (850) 385-1805
FAX: (850) 385-3251

Copyright © 2012 by Florida Independent Automobile Dealers Association, Inc

08/2012.
 FIADA

Table of Contents

Section 1: Dealer License Laws ............................................................................. 1

Section 2: Title and Registration Requirements..................................................... 86

Section 3: Tax Information For Motor Vehicle Dealers…....…………………... 113

Section 4: Motor Vehicle Sales Finance .............................................................. 171

Section 5: Attorney General Enforcement .......................................................... 192

Section 6: Federal Regulations............................................................................. 208

Section 7: Emissions and Environmental Issues ................................................. 226

Section 8: Dealer Financial Operations................................................................ 234

Section 9: Dealer Resources ................................................................................ 246

EACH SECTION WILL BE FOLLOWED WITH A SERIES OF QUESTIONS TO HELP

YOU GRASP VARIOUS ELEMENTS FROM THAT SECTION.

AN EXAM WILL BE ADMINISTERED SEPRATELY AT THE CONCLUSION.

YOU MAY PRINT YOUR 'CERTIFICATE OF COMPLETION' UPON PASSING.

 FIADA

Section 1

Dealer
License
Laws

1
 Dealer License Laws

What Is A Dealer?

Florida law defines a motor vehicle dealer as "any person engaged in the business of buying,
selling, or dealing in motor vehicles or offering or displaying motor vehicles for sale at
wholesale or retail, or who may service and repair motor vehicles pursuant to an agreement as
defined in s. 320.60(1)" (s.320.27(1)(c), F.S.).

Currently, there are five categories of motor vehicle dealers:

1. "Franchised motor vehicle dealer" means any person who engages in the business of
repairing, servicing, buying, selling, or dealing in motor vehicles pursuant to an agreement as
defined in s. 320.60(1).
2. "Independent motor vehicle dealer" means any person other than a franchised or wholesale
motor vehicle dealer who engages in the business of buying, selling, or dealing in motor
vehicles, and who may service and repair motor vehicles. Typically, this is known as a "used car
dealer". However, an Independent Motor Vehicle Dealer also includes someone who sells used
motorcycles, trucks, heavy equipment that is titled, and certain types of trailers that weigh more
than 2,000 pounds.
3. "Wholesale motor vehicle dealer" means any person who engages exclusively in the
business of buying, selling, or dealing in motor vehicles at wholesale or with motor vehicle
auctions.
4. "Motor vehicle auction" means any person offering motor vehicles or recreational vehicles
for sale to the highest bidder where buyers are licensed motor vehicle dealers. Such person shall
not sell a vehicle to anyone other than a licensed motor vehicle dealer.
5. "Salvage motor vehicle dealer" means any person who engages in the business of acquiring
salvaged or wrecked motor vehicles for the purpose of reselling them and their parts.

All of the above is contained in ss. 320.27(1-5), Florida Statutes.

Salvage Dealers – expanded

The salvage dealer deals in ‘parts’ only.

To offer road worthy vehicles requires an Independent Dealer license. It is legal to have a Salvage
dealer’s (SD) and an Independent dealer’s (VI) license at the same location as long as the owner-operator
is the same of each.

Dealer must confirm with the city and county code enforcement departments to see if they allow the
Salvage Dealer license at this location.

This is the youngest approved license and is still evolving. The Division of Motorist Services,
Department of Revenue, Environmental Protection Agency, Law Enforcement, to name a few, have

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some level of authority over this industry. Communicate with each one early on to determine
requirements and how to provide them what they want, when they want it, in the manner they want it.

Good record keeping is essential to providing an overseeing agency what they want and for the dealer to
make good informed decisions to maximize the profits available in what can be a very lucrative business.

What follows is a small insight to various relevant statutes.

f.s. 320.07 A salvage motor vehicle dealer is exempt from the requirements for garage liability
insurance and personal injury protection insurance on those vehicles that cannot be legally operated on
road, highways, or streets in this state.

f.s. 320.30(10) The department may adopt rules to implement an electronic system for issuing salvage
certificates of title and certificates of destruction.

f.s.319.30 Definitions; dismantling , destruction, change of identity of motor vehicle or mobile

home; salvage.
s.713.785(7)(e) “Derelict motor vehicle” means:
1. Any motor vehicle as defined in s. 320.01(1) or mobile home as defined in s. 320.01(2), with or
without all parts, major parts, or major component parts, which is valued under $1,000, is at least 10
model years old, beginning with the model year of the vehicle as year one, and is in such condition
that its highest or primary value is for sale, transport, or delivery to a licensed salvage motor vehicle
dealer or registered secondary metals recycler for dismantling its component parts or conversion to
scrap metal; or
2. Any trailer as defined in s. 320.01(1), with or without all parts, major parts, or major component
parts, which is valued under $5,000, is at least 10 model years old, beginning with the model year of
the vehicle as year one, and is in such condition that its highest or primary value is for sale, transport,
or delivery to a licensed salvage motor vehicle dealer or registered secondary metals recycler for
conversion to scrap metal.

(f) “Derelict motor vehicle certificate” means a certificate issued by the department which serves as
evidence that a derelict motor vehicle will be dismantled or converted to scrap metal. This certificate
may be obtained by completing a derelict motor vehicle certificate application authorized by the
department. A derelict motor vehicle certificate may be reassigned only one time if the derelict
motor vehicle certificate was completed by a licensed salvage motor vehicle dealer and the derelict
motor vehicle was sold to another licensed salvage motor vehicle dealer or a secondary metals
recycler.

(i) “Major component parts” means:

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 1. For motor vehicles other than motorcycles, any fender, hood, bumper, cowl assembly, rear
quarter panel, trunk lid, door, deck lid, floor pan, engine, frame, transmission, catalytic converter, or
airbag.
2. For trucks, in addition to those parts listed in subparagraph 1., any truck bed, including dump,
wrecker, crane, mixer, cargo box, or any bed which mounts to a truck frame.
3. For motorcycles, the body assembly, frame, fenders, gas tanks, engine, cylinder block, heads,
engine case, crank case, transmission, drive train, front fork assembly, and wheels.
4. For mobile homes, the frame.

If a valid certificate of title, salvage certificate of title, or certificate of destruction is not available, a
derelict motor vehicle certificate application shall be completed by the seller or owner of the
motor vehicle or mobile home, the seller’s or owner’s authorized transporter, and the licensed salvage
motor vehicle dealer at the time of sale, transport, or delivery to the licensed salvage motor vehicle
dealer. The derelict motor vehicle certificate application shall be used by the seller or owner, the
seller’s or owner’s authorized transporter, and the licensed salvage motor vehicle dealer to obtain a
derelict motor vehicle certificate from the department. The derelict motor vehicle certificate
application must be accompanied by a legible copy of the seller’s or owner’s valid Florida driver’s
license or Florida identification card, or a valid driver’s license or identification card issued by
another state. If the seller is not the owner of record of the vehicle being sold, the dealer shall, at the
time of sale, ensure that a smudge-free right thumbprint, or other digit if the seller has no right
thumb, of the seller is imprinted upon the derelict motor vehicle certificate application and that a
legible copy of the seller’s driver’s license or identification card is affixed to the application and
transmitted to the department. The licensed salvage motor vehicle dealer shall secure the derelict
motor vehicle for 3 full business days, excluding weekends and holidays, if there is no active lien or a
lien of 3 years or more on the department’s records before destroying or dismantling the derelict
motor vehicle and shall follow all reporting procedures established by the department, including
electronic notification to the department or delivery of the original derelict motor vehicle certificate
application to an agent of the department within 24 hours after receiving the derelict motor vehicle.
If there is an active lien of less than 3 years on the derelict motor vehicle, the licensed salvage motor
vehicle dealer shall secure the derelict motor vehicle for 10 days. The department shall notify the
lienholder that a derelict motor vehicle certificate has been issued and shall notify the lienholder of
its intention to remove the lien. Ten days after receipt of the motor vehicle derelict certificate
application, the department may remove the lien from its records if a written statement protesting
removal of the lien is not received by the department from the lienholder within the 10-day period.

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However, if the lienholder files with the department and the licensed salvage motor vehicle dealer
within the 10-day period a written statement that the lien is still outstanding, the department shall
not remove the lien and shall place an administrative hold on the record for 30 days to allow the
lienholder to apply for title to the vehicle or a repossession certificate under s. 319.28. The licensed
salvage motor vehicle dealer must secure the derelict motor vehicle until the department’s
administrative stop is removed, the lienholder submits a lien satisfaction, or the lienholder takes
possession of the vehicle.

Mobile Home Dealer (Separate training class required for this license.)

There are also two other categories of licensed dealers: Mobile Home Dealer and Recreational
Vehicle Dealer.

A "Mobile Home Dealer" means any person engaged in the business of buying, selling, or
dealing in mobile homes or offering or displaying mobile homes for sale. The term "dealer"
includes a mobile home broker. A "Mobile home broker" means any person who is engaged in
the business of offering to procure or procuring used mobile homes for the general public; who
holds himself or herself out through solicitation, advertisement, or otherwise as one who offers
to procure or procures used mobile homes for the general public; or who acts as the agent or
intermediary on behalf of the owner or seller of a used mobile home which is for sale or who
assists or represents the seller in finding a buyer for the mobile home (ss. 320.77(1)(a) and
320.77(1)(b), F.S.).

Recreational Vehicle Dealer (Separate training class required for this license.)

A "Recreational Vehicle Dealer" means any person engaged in the business of buying, selling,
or dealing in recreational vehicles or offering or displaying recreational vehicles for sale. The
term "dealer" includes a recreational vehicle broker. A "Recreational vehicle broker" means any
person who is engaged in the business of offering to procure or procuring used recreational
vehicles for the general public; who holds himself or herself out through solicitation,
advertisement, or otherwise as one who offers to procure or procures used recreational vehicles
for the general public; or who acts as the agent or intermediary on behalf of the owner or seller
of a used recreational vehicle which is for sale or who assists or represents the seller in finding a
buyer for the recreational vehicle (ss. 320.771(1)(a) and 320.771(1)(b), F.S.).

Who Needs A Dealer License?

Florida law states that anyone who is engaged in the business of buying, selling, or dealing in
motor vehicles or offering or displaying motor vehicles for sale at wholesale or retail is
required to become a dealer. It doesn't matter how many vehicles a person buys or sells once
they "engage in business" to deal in motor vehicles; they then need a license. It is a myth that

5
you can sell up to three vehicles without a license. The law "presumes" a person is engaged to
be in business if he deals in three or more vehicles in a 12 month period. In the case of mobile
homes and recreational vehicles, the law "presumes" a person to be a dealer if she sells one or
more within a 12-month period. The term "sale" and "selling" include lease-purchase
transactions. This means that leasing companies that offer a vehicle through a lease-purchase
plan must be licensed as an independent or franchised dealer.

Which License Is Required To Only Wholesale Vehicles?

Many people who go into the motor vehicle business often plan to "wholesale" only. That is,
they only intend to buy and sell at auctions or buy and sell cars directly from and to dealers.
There is a separate "Wholesale" license issued to those persons. The requirements for the license
are the same for an Independent dealer license with the exception that a wholesale dealer does
not need to have a display or storage area at its licensed location. Wholesale dealers can never
retail vehicles nor are they allowed to purchase and use dealer plates. A dealer with an
Independent or Franchised Dealer License can both retail and wholesale motor vehicles.

Who Is Exempt From Having A License?

Any persons or businesses not engaged in the purchase or sale of motor vehicles as a business
who dispose of their own vehicles are not required to be licensed. The law also exempts persons
who sell vehicles they acquire through foreclosure or by operation of law. (Vehicles sold after
being repossessed or for unpaid towing, storage or repair bills are examples.) Public officials
who sell government owned vehicles as part of their official duties are exempt from having a
dealer license. Rental car and leasing companies who sell their inventory to licensed dealers are
also exempt. Finally, persons engaged in the business of manufacturing, selling, or offering or
displaying for sale at wholesale or retail no more than 25 trailers in a 12-month period are
exempt.

What About A Motor Vehicle Broker?

The law does not require a motor vehicle broker to have a dealer license because a broker never
takes possession of vehicles, owns inventory or takes trade-ins. A broker simply brings a buyer
and a seller together who negotiate their own transaction. An agent or wholesaler representing a
licensed dealer is not considered a broker. Mobile home brokers and Recreational vehicle brokers
ARE required to obtain a license.

What's The Penalty For Not Having A License?

Not having a license when required to do so violates two Florida Statutes. First, it is a second
degree misdemeanor. Second, someone dealing in motor vehicles without a license is also
deemed to be guilty of an unfair and deceptive trade practice. An injunction may be obtained by

6
the Division of Motorist Services to stop individuals who continue to deal in vehicles without a
license after proper notice. This is an offense that could result in an arrest and fines.

What Is Curbstoning?

Curbstoning occurs when individuals buy, sell and deal in motor vehicles and do not have a
dealer license. Often these individuals will be dealing in vehicles with "open titles" to avoid
being in the chain of ownership. Sometimes these individuals will use a licensed dealer to
acquire vehicles and sell them from private residences or parking lots as if they were private
sales. In this instance the curbstoner is "renting" the use of a dealer's license, which is illegal. A
dealer may allow only a "bona fide employee" to buy and sell vehicles under the dealer's license.
The Division of Motorist Services, local code enforcement and law enforcement agencies may
have vehicles that are illegally displayed "for sale" immediately towed at the owner's expense.

To recover the towed vehicle the owner must report to the enforcement agency that authorized
the tow, produce proof of ownership and pay a fine of $100.00. They must then take an
Authorization To Release Vehicle After Curbstoning Citation form, HSMV 84060 to the towing
and storage yard and pay for towing and storage to get their vehicle back.

Dealer vehicles may only be displayed as authorized by the Division of Motorist Services.

Licenses Issued By the Division of Motorist Services

The Division of Motorist Services issues dealer licenses to dealers, manufacturers and
distributors for motor vehicles, mobile homes and recreational vehicles. The common types of
licenses you will most often see have the following prefix as part of the license number:

VI Issued to independent motor vehicle dealers who buy, sell and deal in used cars, trucks
and motorcycles;
VF Issued to franchise dealers who sell new cars, trucks and motorcycles;
SF Issued to service facilities associated with VF license;
VA Issued to motor vehicle dealer auctions;
VW Issued to dealers who only wholesale motor vehicles;
DH Issued to mobile home dealers;
BH Issued to mobile home brokers;
RV Issued to new recreational vehicle dealers
RU Issued to used RV dealers; and
SD Issued to salvage dealers.

The License Certificate

A license certificate is issued by the Division of Motorist Services upon initial licensure,
name changes and address changes. The certificate will have your dealer number printed

7
on the upper right hand corner. That number is a permanent number. (See "Exhibit DL- 1"
for a sample of the dealer license.) You will also receive another document with your
dealer license that contains your four digit "PIN." The PIN is a security feature that allows
the holder to transfer titles and to purchase dealer plates and temporary tags. The PIN is
used in conjunction with the dealer license number at the tax collector's office to complete
those transactions. Therefore, you will only give the PIN to trusted employees. If the PIN
is compromised, you will need to notify DIVISION OF MOTORIST SERVICES
immediately in order to get a new PIN issued. Each year upon renewing your license, you
will carry forward the same PIN; it will only change upon request.

"Exhibit DL-2" is a sample of the form you will receive from the Division of Motorist Services.
Safeguard this document.

License Periods

Independent, Auction, Wholesale and Salvage: May 1 through April 30

Franchised and Service Facility: January 1 through December 31
Mobile Home and Recreational Vehicles: October 1 through September 30

It is important to know that you must file a renewal application with the Division of Motorist
Services at least 30 days prior to the license expiration date to ensure that your license is valid on
the first day of your licensing period. You cannot transact business without a current license.

The Application Process

For a few, the application process may appear ominous, but for most, the process flows quickly.
It is important throughout this process to keep in touch with your local Division of Motorist
Services representative. The Compliance Examiner/Officer can be your best ally and help guide
you through the process and be a valuable source of information
throughout your career as a dealer. Before you begin the application process you must first
consider a few things:

1. What kind of business do you intend to operate, wholesale or retail? How many vehicles do
you intend to have in inventory? This helps to determine what kind of location you will need.
2. You will need to decide on what type of business entity you will be operating your business
with. Will it be a sole proprietorship, partnership, corporation, LLC, or LLP? You are strongly
urged to get professional advice from an accountant or a business attorney to help with these
decisions.

8
3. You must consider where you intend to conduct your business, keeping in mind that you will
become licensed to deal in motor vehicles at a specific location. Do not commit yourself to a lease or
purchase property if you are not sure the location will satisfy DIVISION OF MOTORIST SERVICES
rules and meet local zoning approval. Zoning requirements throughout the state have become stricter
with regard to licensing motor vehicle dealerships.

Once these decisions have been made, you need to contact the DIVISION OF MOTORIST
SERVICES to obtain a dealer license application, approved electronic fingerprint vendors and a
blank surety bond form. The DIVISION OF MOTORIST SERVICES will refer you to a dealer
training school and request that you set up an appointment with a Compliance Examiner/Officer
to have your proposed location inspected. Remember: do not mail your application to
Tallahassee! You must process the application package and fees through your local Compliance
Examiner/Officer and the DIVISION OF MOTORIST SERVICES Regional Office. See Exhibit
DL-3 for a list of Regional Offices.

The Application Package

1. Complete the application form HSMV 86056 for dealer license in full, making sure to
follow the instructions provided. All questions must be properly answered. If you have
been charged and convicted of a felony, you must provide an official disposition of the
case (e.g., conviction, adjudication withheld, civil rights restored, etc.). Also, if you have
been convicted of a misdemeanor or any violation of motor vehicle statutes or
DIVISION OF MOTORIST SERVICES rules, you will also need to provide
documentation. The attorney that handled your case should be able to assist you, or you
may contact the Clerk of the Court in the county where the charges were filed to obtain
copies of court records. If you have had your bond cancelled or denied you need to write
a statement concerning the facts of the cancellation or denial.

2. An electronic fingerprint card must be submitted for each person listed on the application.
That means one for a sole owner, one for each member of a partnership, one for each
principal officer and director of a corporation, and one for each member/partner and
managing member/partner of an LLC/LLP, as listed on the dealer application. NEW April
1, 2012 all fingerprinting may only be obtained from an approved vendor. The list may be
obtained from the following site:
http://www.flhsmv.gov/dmv/FDLEApprovedServiceProviderListForElectronicFingerprint
s.pdf Turn in the receipt with the application.

3. All business names and fictitious name(s) must be registered with the Division of
Corporations. If you intend to operate your business with a fictitious trade name, that
name must be registered with the Secretary of State. Proof that you filed your
fictitious trade namemust be supplied with the application. The Secretary of State's
Office can be contacted at (850) 488-9000 or documentation can be obtained and
applications can be made through the Internet at www.sunbiz.org.

4. If your business is incorporated, you will have to provide a copy of your corporate
charter and a copy of the latest corporate minutes reflecting the current officers. All
businesses that are incorporated must submit a copy of the Articles of Incorporation.
Likewise, if your business is a LLC or LLP, you must provide a copy of the Articles of
Organization and a copy of the Operating Agreement. If you do not have an Operating
9
 Agreement, you must submit an affidavit stating the same.
All persons' names that appear on your corporate or company papers must appear on the
application; you will need an electronic fingerprint completed at a FDLE approved
service provider for each of these persons. A list of these providers can be accessed at
the Department’s website at
http://flhsmv.gov/dmv/FDLEApprovedServiceProviderListForElectronicFingerprints.pdf
.
5. If the property is leased, you will need to provide a copy of the lease. The lease must be in
the name of the entity that is applying for a dealer license. If the property is owned by the
applicant, then proof of ownership must be provided with the application. A copy of a
deed or tax record will suffice.

6. Obtain and record your Federal Employer Identification Number on your application.
This number is your federal taxpayer I.D. number and is obtained from the Internal
Revenue Service. If you are a sole owner/proprietor and have no employees and do not
have an FEIN, then you will record your social security number and provide an affidavit
stating that you have no employees and will perform all the duties of the business
yourself.

7. Obtain and record your State of Florida sales tax registration number. Contact the Florida
Department of Revenue to obtain this number.

8. For Independent, Franchised, Auction, Wholesale and Salvage dealers, purchase a

ƒ $25,000 surety bond, issued by an insurance company licensed in Florida, and provide
documentation for the bond on a form supplied by the DIVISION OF MOTORIST
SERVICES. For Mobile Home dealers, purchase a $25,000 surety bond if the dealer is
operating with four or fewer supplemental licenses, or purchase a $50,000 surety bond if
the dealer has more than four supplemental licenses. For Recreational Vehicle dealers,
purchase a $10,000 surety bond if the dealer has four or fewer supplemental locations, or
purchase a $20,000 surety bond if the dealer has more than four supplemental locations.
Motor Vehicle Dealers may opt to obtain an irrevocable letter of credit instead of the
surety bond. The irrevocable letter of credit must be issued on the Division of Motorist
Services form by a bank qualified to do business in Florida. See Exhibits DL-4 Form
HSMV 86020: Surety Bond, for Motor Vehicle Dealer and DL-5 Form HSMV 86057:
Florida Motor Vehicle Dealer Irrevocable Letter of Credit. Mobile home dealers must use
Form HSMV 86018: Surety Bond, for Mobile Home Dealers and 86058: Florida Mobile
Home Dealer Irrevocable Letter of Credit. Recreational vehicle dealers must use Form
86019: Surety Bond, Recreational Vehicle Dealer. The irrevocable letter of credit does
not apply to RV dealers.

9. Independent dealers (VI), Auction dealers (VA), Wholesale dealers (VW), and Salvage
dealers (SD) have the option to submit a copy of:
A garage liability insurance certificate which shall include, at a minimum, $25,000
combined single-limit liability coverage including bodily injury and property damage
protection and $10,000 personal injury protection;
OR
A general liability insurance policy coupled with a business automobile policy, which shall
included, at a minimum, $25,000 combined single-limit liability coverage including bodily
injury and property damage protection and $10,000 personal injury.
10
 Franchise dealers (VF), Recreational dealers (RV & RU), and Mobile Home
dealers/brokers (DH/BH) selling recreational vehicles must submit a garage liability
insurance certificate which shall include, at a minimum, $25,000 combined single-limit
liability coverage including bodily injury and property damage protection and $10,000
personal injury protection.

10. A copy of the original certificate you receive from the dealer training school must be
part of the package.

11. All fees in the form of a check or money order are to be made payable to the DIVISION
OF MOTORIST SERVICES and must accompany the application. As of the date of this
printing, the fee for a resident dealer in all categories of licenses covered is $300.00.
Non-resident dealers must pay a fee of $2,000 per county in which they intend to
operate. The fee for processing electronic fingerprinting is paid to the approved vendor.
These fees are nonrefundable.

12. On rare occasions, certain circumstances may require additional supporting

documentation. Your Compliance Examiner/Officer will advise you about any other
necessary documentation that you must provide.

What Happens If My Application Is Denied?

Applications are typically denied because the application is incomplete, one of the applicants
cannot qualify for a license due to a criminal record, or the dealer location does not qualify.
Before your application is accepted, DIVISION OF MOTORIST SERVICES will most likely
advise you up front if it appears that it will be denied. You will be given an opportunity to make
any changes needed to qualify for the license. However, if the license application is accepted
and subsequently denied, the applicant has a legal right to appeal the decision. This is usually
done through an administrative hearing. An applicant who has been denied a license will be
notified of the DIVISION OF MOTORIST SERVICES's decision to deny the license in
writing. If you suspect there will be a problem with your application, you may want to contact
the DIVISION OF MOTORIST SERVICES Regional Administrator and request an informal
conference to discuss these issues, prior to submitting it.

Location Requirements

Florida Law requires each dealer to have a permanent location where the business of a motor
vehicle dealer can be conducted lawfully and in good faith.

- The location must not be a residence or part of any other business.

- The location must have sufficient unoccupied space to adequately store or display vehicles
offered "for sale."
- Each location must be physically inspected before an application for license is processed.
Because the primary reason for not qualifying for a license is attributed to an unqualified
location, the DIVISION OF MOTORIST SERVICES insists on the location inspection early
on in the application process.
- The DIVISION OF MOTORIST SERVICES location rule is summarized below.
- Remember, if the DIVISION OF MOTORIST SERVICES approves your location, you still
need to check with your local zoning authority to ensure you can operate your business at your
11
intended location. You also need to check with the city and county concerning occupational
licenses and certificates of occupancy.
NOTE: If a dealer is still operating at your proposed location, that dealer's license must be
processed for cancellation (that is, cancelled for that location) before your application will be
accepted by DIVISION OF MOTORIST SERVICES. This takes time; it is suggested that
you check with your Compliance Officer.

Summary of Location Requirements

1. Each location shall have a permanent office that is not part of a residence. The office shall
have at least 100 square feet of space, excluding hallways, closets or restrooms. The ceilings
shall be at least 7 feet high.
2. The office must be clearly separated from any other business being operated in the structure
that houses the dealership.
3. Each dealer must maintain display spaces as part of the place of business. The spaces must:
a. Be of sufficient size to display or store all vehicles offered "for sale." The spaces may be
inside or outside.
b. Be under the exclusive control of the dealer and not be part of an area set aside for customer,
employee or general public parking. Nor shall it include public right-of-way.
c. Be contiguous to the dealership office or allow for easy access by dealership customers.
d. Have immediate and direct access to a public street or highway or be situated on property to
which public access has been granted.
e. Be physically divided from any other dealer's display space by a permanent barrier no less
than three feet high and must distinguish one dealer's display space from another dealer's display
space.
4. The business of a motor vehicle dealer must be the principal business conducted at the
licensed location.
5. The dealer or designee shall be available to customers and DIVISION OF MOTORIST
SERVICES during regular business hours. Therefore, the dealer must post hours of operation in
a clear manner at or near the main entrance to the dealership office on a placard, sign or by other
durable means.
6. The dealer shall have a permanent sign identifying the dealership at its place of business and
be of sufficient size so as to be read and visible from a distance of 50 yards from the public
right-of-way serving the dealership. (NOTE: Be certain to check local zoning requirements for
signage.)

If DIVISION OF MOTORIST SERVICES does not approve your location, ask the
representative to cite the specific rule violation. A copy of Rule 15C-7.003 is included in its
entirety in Exhibit DL-7. You can also contact the Chief of Field Operations for further
clarification and review.

Changes After Licensing

It is not uncommon for a dealer to make business changes after initial licensing. Often a sole
owner/proprietor may take on a partner or decide to incorporate. Dealers may add a location,
move their location or change the name of their business. Some of these changes can be handled
as simple license modifications; others require a new license application. Here are some of the
most common changes after initial licensing.

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All corporate officer changes must be submitted for form HSMV 86056. This form can be
accessed at http://flhsmv.gov/dmv/forms/BFO/86056.pdf.

All other modifications to an existing license must be submitted on for HSMV 86072. This can
be accessed at http://www.flhsmv.gov/dmv/forms/BFO/86072.pdf. A check list of required
documents is attached with this form for all type of modifications to an existing license.

1. Adding a location under the same name and ownership. This requires an application
(form HSMV 86072) from DIVISION OF MOTORIST SERVICES for a "supplemental
location." Your location must be inspected and approved by your local DIVISION OF
MOTORIST SERVICES Compliance Examiner/Officer. If the location is leased, you will need
a copy of the lease or if owned, you will need a copy of the deed or tax record. All location
requirements apply (see Rule 15C-7.003, F.A.C.) The fee is $50.00. The license is valid from
the date of issue until the expiration of your license period. The cost to renew the license is
$50.00. Note that when you first become licensed, your initial location is considered by
DIVISION OF MOTORIST SERVICES as your "main location." If you choose to change your
main location to a supplemental location, you must advise your Compliance Examiner/ Officer
so he/she may update the dealer license records. The license issued to supplemental locations
will have the same dealer number but shall include a letter as a suffix. The first additional
location will have the suffix "2", the second "3" and so on. Opening up another location under
a
different ownership entity is not considered a supplemental location, but rather a separate license
requiring the submission of a complete application package.

2. Name changes where there is no change in business entity. In this case, a dealer is not
making any changes in its business entity, but only the name of the business. If the business is a
sole proprietorship or partnership, the dealer must file a new fictitious trade name. If the business
is incorporated (or LLC/LLP) and the dealer changes the corporate name only and does not form
a new corporation, then the dealer must submit proof from the Secretary of State's office that the
corporate name was changed. Forming a new corporation requires the submission of a complete
application package. In all name change cases, the dealer must submit an application (form
HSMV 86072) for the name change. The fee is $25.00, along with the fictitious trade name filing
or corporate name update. The dealer must have a bond rider from the insurance company that
issued the dealer's bond showing that the dealership has changed its name. If the dealer has an
irrevocable letter of credit from the bank, then the bank must provide an endorsement for the
irrevocable letter of credit filed with DIVISION OF MOTORIST SERVICES. You will also
want to notify the company that issued your garage liability insurance, the auctions you do
business with, the tax collector's office, and other agencies that you have licenses and permits
with. You will also have to change your sign, forms, and any other documents that show your
business name. You will not be able to do business under your new name until you have filed
an application with the DIVISION OF MOTORIST SERVICES and it has been approved.

Motor vehicle dealers who are submitting form HSMV 86072 for name change must also submit
an affidavit stating that there has been no change in the majority ownership. Franchise motor
vehicle dealers must submit a second affidavit indicating there has been no change in the dealer-
operator whose name appears on the Sales and Service Agreement. An original bond rider must
be submitted amending the bond to the new name. If a fictitious name has been changed or
added, it must also be recorded with the Secretary of State’s Division of Corporations Office
and a copy of the certification stating the fictitious name must be submitted
13
 along with the application.

Please note: The name change for franchise dealers must be approved by their manufacturers.
The manufacturer(s) must advise the Department in writing of their approval of the name change
for their franchise dealer.

3. Moving a location. There may be occasions when you want or need to change your business
location, whether it is your main location or any of your supplemental locations. To do so, you
will need to complete DIVISION OF MOTORIST SERVICES form HSMV 86072 and submit a
copy of the lease, if the location is leased or a copy of the deed or tax record if the location is
owned. The location must be inspected and approved by the local DIVISION OF MOTORIST
SERVICES Compliance Examiner/Officer. The fee for changing a location is $50.00. You will
need to check with local zoning authorities and other agencies that you have licenses or permits
with to determine what other requirements you must meet to change a location. Remember —
never change your location without notifying the DIVISION OF MOTORIST SERVICES first. If
you don't, your license may be revoked because DIVISION OF MOTORIST SERVICES can't
find you! Franchised dealers must also meet other relocation requirements as provided for in
s.320.60, Florida Statutes.

4. Postal updates. Even though you may not have physically moved your location the
postal authorities may have changed your address. It is important that DIVISION OF
MOTORIST SERVICES can locate you. New employees may not know where you are
located or your mail may be misdirected. You may file an abbreviated application on form
HSMV 86072 with DIVISION OF MOTORIST SERVICES anytime during the year. There
is no fee for postal updates. Be sure to include a copy of the USPS notice advising you of an
update.

5. Corporate updates. When a corporation holding a license has a change in corporate officers
that does not involve a majority change of ownership, the business must report the change of
corporate officers by completing DIVISION OF MOTORIST SERVICES form HSMV 86056
and answering the appropriate questions about officers. If applicable, supporting documentation
may be required concerning criminal records and bond cancellations. An electronic fingerprint
from a FDLE approved service provider is required for all new officers. A copy of the corporate
minutes reflecting the election of new officers must be attached to the application. There is no fee
to update a license for corporate officers. The application form HSMV 86056, Application for a
License as a Motor Vehicle, Mobile Home, or Recreational Vehicle Dealer, must be completed
and signed by an existing officer and page 5 must be signed by each new officer and must be
notarized.

6. Change in bonding companies. If you change bonding companies for any reason, you must
submit the new original surety bond to the DIVISION OF MOTORIST SERVICES. The bond
coverage must be continuous; therefore, the new bond must be issued so there is no lapse in
coverage. If your existing bond is canceled by your insurance company and you do not secure a
replacement bond before the cancellation date, then you must cease to do business. Your dealer
license will automatically be revoked. Insurance companies will give you 30 days notice if they
intend to cancel your bond. They will also notify the DIVISION OF MOTORIST SERVICES.
Once notified, the DIVISION OF MOTORIST SERVICES will expect the dealer to submit a
new bond. If a new bond or a reinstatement from your current bonding company is not
14
submitted, DIVISION OF MOTORIST SERVICES will revoke your license. Bonding
companies will generally cancel a dealer because of excessive claims, bad checks or a change in
carriers who may have more stringent financial requirements for issuing bonds that you may not
meet. You may contact the Department of Financial Services concerning unfair bond
cancellations. A dealer may submit an Irrevocable Letter of Credit in lieu of a new bond.

7. Abandoned locations. If you close your location for a period of time and don't notify the
DIVISION OF MOTORIST SERVICES that you are out of business, it might be assumed that
you have abandoned your location. If that happens, your license will be revoked. If you intend
to go out of business voluntarily it is recommended that you surrender your license, write on
the back of the license that you are voluntarily surrendering your license as of a specific date,
and sign your name. Be sure to notify the auctions you do business with and the tax collector's
office. You will also want to notify any agencies that you have other licenses and permits with.
Vehicles in your inventory that are remaining should be wholesaled or transferred into your
name. Once you turn in your license, you are no longer authorized to do business. If you lose
the lease to your location or sell the property, you must notify the DIVISION OF MOTORIST
SERVICES as soon as possible. Without a location, you are not legally authorized to hold a
license. However, the DIVISION OF MOTORIST SERVICES may work with you and allow
you a few days to find a new location. They will not allow you to conduct business without a
location and are under no legal obligation to allow you to hold a dealer's license. If you intend
to be away from your business location for an extended period of time, you must notify the
DIVISION OF MOTORIST SERVICES Regional Office. Examples of extended leaves would
include long trips, family emergencies and leaves for health reasons. Seasonal licenses are not
issued by the DIVISION OF MOTORIST SERVICES.

8. Changes in garage liability insurance companies. You are required to have continuous
garage liability insurance coverage while you are licensed. If your policy is canceled, the
insurance company may notify DIVISION OF MOTORIST SERVICES. You must then secure
replacement insurance so there is no lapse in coverage. If you fail to have garage liability
insurance in effect, your license may be suspended or revoked by the DIVISION OF
MOTORIST SERVICES. You will also be fined $1,000!

9. Bankruptcy. A dealership undergoing either a Chapter 11 reorganization bankruptcy

proceeding or a Chapter 7 liquidation bankruptcy proceeding may retain its dealer license during
the course of the bankruptcy proceedings and may continue to operate as a licensed dealer.
However, the bankruptcy proceeding does not protect a dealer from all of the operational and
licensing requirements imposed on the dealer, or from penalties for unlawful conduct. In other
words, bankruptcy does not permit a dealer from operating a business in violation of licensing
laws and rules. The surety bond or irrevocable letter of credit remains in force and effect, and
claims can validly be made against those bonds or letters for violations that occur after the
petition for bankruptcy has been filed. You should notify the DIVISION OF MOTORIST
SERVICES Regional Administrator if you have filed for bankruptcy and provide her/him with
the names of your attorney and court appointed trustee. DIVISION OF MOTORIST SERVICES
will assist in handling consumer complaints that may be filed.

10. Selling a business that holds a dealer license. Dealer licenses are not transferable or
assignable. If you sell your business, the new owner must apply for a new license. You may
negotiate a management agreement during the interim period; however, you as the licensee are
responsible for all acts that occur under your license. Do not sell a business and leave your
license on the wall for someone else to assume! Franchised dealers must also comply with any
15
applicable provisions of s. 320.60, Florida Statutes.

11. Voluntary Relinquishment of a Dealer License. If you should ever decide to get out of the
business and wish to voluntarily surrender your dealer license, before the DIVISION OF
MOTORIST SERVICES will accept the license, you must ensure that there are no outstanding
consumer complaints against your dealership; there are no pending sales transactions where
payoff of trade-in vehicles or lien applications have not been made or for which application for
title and registration has not been made; and either you have disposed of all your inventory or
you have provided DIVISION OF MOTORIST SERVICES with a list of your remaining
inventory. You are given 30 days to dispose of all remaining vehicles in inventory. If you do not
abide by all of these requirements, you risk ever being able to reapply for a dealer license in the
future. A new dealer will not be able to obtain a license for this location until the "Voluntary
Relinquishment of License" has been fully processed.

License Renewals

A license is valid from the date of issue until it expires. The annual license period is May 1
through April 30 for Independent, Auction, Salvage and Wholesale dealers; January 1 through
December 31 for Franchise dealers and Service Facilities associated with the franchise dealers;
and October 1 through September 30 for Mobile Home and Recreational Vehicle dealers. The
license period for non-resident dealers is January 1 through December 31.

The renewal fee is $75.00 for Independent, Franchised, Auction, Salvage and Wholesale dealers;
and $100.00 for Mobile Home and Recreational Vehicle dealers. Mobile Home and Recreational
Vehicle dealers also pay an additional $40.00 per year to the Mobile Home and Recreational
Vehicle Protection Trust Fund. The renewal fee for non-resident dealers is $2,000 for each
county in which the dealer operates.

The law requires DIVISION OF MOTORIST SERVICES to deliver or mail to each dealer a
license renewal form not less than 60 days prior to the expiration date. A dealer who files a
renewal application less than 30 days before the license expiration shall cease doing business if
they do not have a new license by the first day of the license period. A dealer may file a late
renewal anytime during the 45 days after the expiration date; however, the dealer cannot resume
business until a new license is issued. The late fee for Independent, Franchised, Auction,
Salvage and Wholesale dealers is $100.00. The late fee for Mobile Home and Recreational
Vehicle Dealers is the amount of the initial application — $300.00! Mobile Home and
Recreational Vehicle dealers also pay an additional $40.00 per year to the Mobile Home and
Recreational Vehicle Protection Trust Fund. After 45 days has elapsed, Mobile Home and
Recreational Vehicle dealers who have not renewed must file an initial license application, thus
starting all over again.

All supplemental licenses are renewed at the same time as the main location. The fee for the
renewal of supplemental locations is $50.00 per location.

Record Keeping

Creating and maintaining records will be one of the most important management functions that
you will perform. Every government agency that has any regulatory authority over your business
will require you to create and maintain records. Maintaining records is an integral part of your
business and should be of paramount importance to you. The fact of the matter is that accurate
16
records are a necessity, not to mention a legal requirement. Furthermore, good records can keep
you out of trouble with DIVISION OF MOTORIST SERVICES, other regulatory agencies, and
perhaps plaintiff's attorneys!

The DIVISION OF MOTORIST SERVICES has an entire program function dedicated to dealer
records inspections. It is their belief, and rightly so, that if a dealer has the records required by
law, then there is likelihood that the dealership is meeting its statutory obligations. You see, the
records are linked to certain processes that if not being performed or are performed incorrectly,
usually result in consumer complaints. Once you become a licensed dealer, you can expect that
the DIVISION OF MOTORIST SERVICES Compliance Examiner/Officer will visit your
business sometime during the first 3 or 4 months following licensure to review your records.
The purpose of this visit is not only to ensure compliance, but also to provide an educational
opportunity. Take advantage of this visit and learn what the DIVISION OF MOTORIST
SERVICES expects!

Records To Keep

The DIVISION OF MOTORIST SERVICES is not interested in your financial records.

DIVISION OF MOTORIST SERVICES is interested in records regarding vehicle ownership
documents, registrations, temporary tags and odometer statements. Keep in mind, that's what the
DIVISION OF MOTORIST SERVICES deals with. It issues titles and keeps track of ownership
records and license plate information. As a dealer, you are entrusted to make sure that your
customers' vehicles are properly titled and registered. Of course to do that, you must have a title
certificate in the first place. Florida Law requires a dealer to have a duly assigned Manufacturer's
Certificate of Origin (MCO) or title certificate from the time the dealer acquires a vehicle until
the dealer disposes of the vehicle. This means the dealer owns the vehicle and has control over
the transfer of ownership. By having the title and knowing who you sell the vehicle to, you have
all the information available to enter into your records system. NOTE: All DIVISION OF
MOTORIST SERVICES records must be kept for no less than five years. Every dealer
must keep a book or record of all transactions consisting of:

1. The purchase, sale or exchange, or receipt for purpose of sale, of any motor vehicle.
2. The date a temporary tag was issued.
3. The date of title transfer.
4. The name and address of the purchaser.
5. The alleged owner or the person from whom such motor vehicle was purchased or received.
6. The name and address of the person to whom the motor vehicle was sold or delivered.
7. The identification number or engine number, maker's number, if any, chassis number, if any,
and such other numbers or identification marks as may be thereon, and shall also include a
statement that a number has been obliterated, defaced, or changed, if such is the fact.

The statutes that require dealers to maintain records also provide that the DIVISION OF
MOTORIST SERVICES shall prescribe or approve the form in which the records are to be
maintained. However, DIVISION OF MOTORIST SERVICES has chosen to specify the data
elements that must be maintained and will only suggest, rather than mandate, a specific form or
format for records maintenance. A dealer may choose to keep records on electronic media but the
dealer must keep and make available the source documents. This gives you flexibility with your
records system.

Documents themselves, as previously stated, are a source of information. Dealers are required to
17
have an MCO, title certificate or other indicia (proof) of ownership. The following information
must be completed in the appropriate spaces of the required document:

1. Name of dealer or purchaser;

2. The selling price, if sold to other than a dealer;
3. The odometer disclosure (reading);
4. The date the odometer was read;
5. An indication if the odometer reading is:
(a) Not the actual mileage
(b) The mileage exceeds mechanical limits;
6. The signature and hand printed name of the seller (on conforming titles);
7. The signature and hand printed name of the buyer (on conforming titles);
8. A properly notarized signature with seal affixed (if required on title); and
9. Check whether 5 or 6 digit odometer.

Additional requirements include providing a purchaser with:

1. An odometer disclosure statement;

2. Sales contract;
3. A purchase agreement;
4. A finance contract;
5. An insurance contract;
6. A warranty agreement;
7. A Buyer's Guide as required by Federal Rule (becomes part of sales contract when
completed); and
8. Copy of the Certification of Pollution Control Devices or Systems.

Although the DIVISION OF MOTORIST SERVICES does not have a standard record keeping
book, it does provide a sample record keeping log for sales, purchases and temporary tags that
you might find helpful. Exhibits DL-8 is a record of the sales, Exhibit DL-9 is a record of
purchases by a dealer, and Exhibit DL-11 is a temporary tag log. NOTE: Dealers are allowed to
keep completed records electronically (scanned) as long as they can produce the required
documents upon request.

Records Inspections By DIVISION OF MOTORIST SERVICES

There are several ways in which an inspection of your records may be initiated by the
DIVISION OF MOTORIST SERVICES. Inspections may be announced or unannounced.
Routine inspections are usually, but not always, scheduled with the dealer in advance.

1. Within three or four months of initial licensing;

2. Scheduled inspections, usually once every 12 to 24 months;
3. During the investigation of consumer complaints;
4. At the request of other agencies; and
5. At the request of the dealer.

Compliance Examiners/Officers will expect to deal with the dealer principal during the
inspection; however, you may assign someone familiar with the records to assist the Compliance
Examiner/Officer by pulling records and answering questions. If records are kept at a central
location or are away from the premises for security reasons, you will be expected to make the
18
necessary arrangements to have the records at your licensed location in a reasonable amount of
time. If you fail to comply, the DIVISION OF MOTORIST SERVICES Regional Administrator
may ask you to produce your records at the regional office. This could be time consuming for
both the dealer and the DIVISION OF MOTORIST SERVICES. Avoid the situation if at all
possible. If the DIVISION OF MOTORIST SERVICES has received a number of complaints
against your business in a short period of time it may automatically request that you produce
records at the regional office for the purpose of examining your records and conducting an
informal conference to discuss problems and to resolve complaints.

During routine inspections, the Compliance Examiner/Officer will generally pick up to 10

vehicles from your inventory at random and request the records for those vehicles. She/he will
also go back at least 30 days and select up to 10 sales transactions at random and request the
records for those vehicles. Keep in mind, however, that all your records are subject to
inspection. At the conclusion of the inspection, the Compliance Examiner/Officer will
conduct an exit interview and explain the findings with you. If there are an excessive number
of non-
compliances, there will be a follow-up inspection conducted in about 60 days to see if corrective
action has been taken. Remember, failure to maintain accurate records is grounds for an
administrative action against your dealer's license!

Consumer Complaints

Every dealer at one time or another may experience dissatisfaction from a consumer that results
in a consumer complaint being filed with the DIVISION OF MOTORIST SERVICES. The
DIVISION OF MOTORIST SERVICES has the obligation to investigate valid consumer
complaints that fall within its jurisdiction. Each complaint filed with the DIVISION OF
MOTORIST SERVICES must be in writing and accompanied by any supporting documents that
the consumer may have. These documents may include bills of sale, finance contracts,
temporary tag registrations and any other "paperwork" that may have been supplied by the
dealer. The DIVISION OF MOTORIST SERVICES will review the complaint to see if it
falls within its jurisdiction before taking appropriate action. The majority of consumer
complaints revolve around the following issues:

1. Failure to transfer consumer's title and registration. (This is the leading cause for complaints
being filed with DIVISION OF MOTORIST SERVICES against dealers.)
2. Failure to properly maintain a temporary tag log.
3. Issuing more than two temporary tags or issuing a temporary tag for more than 30 days.
4. Failure to return a deposit.
5. Failure to honor the terms of a written agreement

Once the complaint has been reviewed and determined to fall within the jurisdiction of the
DIVISION OF MOTORIST SERVICES the complaint will be assigned to a Compliance
Examiner/Officer for investigation. The Compliance Examiner/Officer will speak to consumers
to get their side of the story and, if necessary, check official records to determine the title and lien
status of the vehicle involved in the complaint. The Compliance Examiner/Officer will also
verify if the dealer is still in business. If the dealer is still in business, the Compliance
Examiner/Officer will contact the dealer and provide a copy of the consumer complaint and allow
the dealer seven days to respond. The DIVISION OF MOTORIST SERVICES does not assume
the dealer is at fault; rather, it relies on facts when making a determination of non-compliance.

19
DIVISION OF MOTORIST SERVICES may decide to examine the dealer's records when the
complaint is delivered to the dealer. In any event, the dealer has seven days to either take
corrective action or provide proof that the complaint is "unfounded." During the complaint
investigation dealers are required to cooperate in every way possible to resolve the matter. A
dealer who fails to cooperate will surely take the risk of an administrative action being filed by
DIVISION OF MOTORIST SERVICES against the dealer's license.

The DIVISION OF MOTORIST SERVICES has established three objectives which clearly
outline its philosophy regarding consumer complaints, the relationship between consumers and
dealers and the relationship between dealers and the DIVISION OF MOTORIST SERVICES.
Those three objectives, in order of priority are:

1. Resolve complaints.
2. Gain the cooperation of a dealer through the process of education to ensure that violations of
statutes administered by the DIVISION OF MOTORIST SERVICES will not be repeated.
3. Impose administrative sanctions on dealers who violate the laws administered by the
DIVISION OF MOTORIST SERVICES, if cooperation of the dealer is not forthcoming.

In most cases the dealer is able to resolve the complaint and satisfy both the consumer and
DIVISION OF MOTORIST SERVICES. In some cases, the dealer can prove that the complaint
is unfounded thereby gaining the support of DIVISION OF MOTORIST SERVICES. In other
cases, a dealer may not be able to resolve a complaint. This may happen when a dealer is in
bankruptcy, cannot pay for a vehicle to secure a title, or the consumer is unwilling to cooperate
(i.e., return a vehicle for a refund). Unresolved complaints may lead to civil action being taken
by the consumer against the dealer. The consumer will more than likely file a claim against the
dealer's surety bond to recover any loss suffered. Depending on the circumstances, the
DIVISION OF MOTORIST SERVICES may also seek sanctions against the dealer's license.

Disciplinary Action Against A Dealer's License

It is the policy of the Division of Motorist Services that when appropriate, administrative
disciplinary action should and will be taken against licensed dealers. The appropriateness of
situations leading to administrative actions depends on a number of factors including: the nature
and seriousness of the violation; the number of previous similar violations; any previous
administrative action; other violations committed by the dealer; total previous history of the
dealer's compliance with requirements; and the cooperation of the dealer in resolving complaints,
producing records, and correcting problems.

DIVISION OF MOTORIST SERVICES may impose a variety of sanctions, which include:

1. Fine up to $1,000 per violation
2. Suspend the license for a period of time or indefinitely.
3. Suspend the license on an emergency basis (summary suspension) to protect the public in
serious cases.
4. Revoke the license.
5. Seek criminal charges.
6. Issue letter of non-compliance (reprimand).
7. Seek injunctive relief.

If the facts warrant, an administrative complaint will be issued by the DIVISION OF

MOTORIST SERVICES Director. The administrative complaint is a legal document which
20
contains the specific actions alleged to have been committed by the dealer, the specific statutes
and rules violated, and notification of the dealer's right to a hearing. The dealer has the right to a
formal hearing or an informal hearing. Informal hearings are conducted by the DIVISION OF
MOTORIST SERVICES Hearing Officer. Formal hearings are conducted by the Division of
Administrative Hearings. The dealer has 21 days from receipt of the administrative complaint to
notify the director whether a hearing (and what type) is requested.

After the hearing is concluded, the hearing officer will draft a recommended order to the
DIVISION OF MOTORIST SERVICES Director, and the Director will issue a final order. The
dealer is expected to adhere to the DIVISION OF MOTORIST SERVICES Director's final
order. If the dealer chooses to appeal the decision of the Director he may do so through the
appropriate court.

Dealer Privileges: Dealer Plates

Once you become a licensed dealer there are two privileges that you will be granted by law that
will allow you to move and deliver unregistered vehicles. Since dealers are not required to "title"
or register vehicles they purchase for resale into their business name, dealers are authorized to
purchase dealer plates and temporary tags.

Dealer plates are metal license plates that are registered to licensed dealers but not to a specific
vehicle. They are issued by the tax collector's office. In order to purchase dealer plates, a dealer
must provide its dealer license number and PIN. Besides the registration fee, dealers will pay an
annual $27.00 use tax for each dealer plate (included in the price of the plate). The plate is valid
from the date of issue and expires when the dealer's license expires.

Each year, a dealer cannot renew a dealer plate without a valid PIN. For this reason, it is
imperative that a dealership renews its license in a timely manner.

Dealer plates are valid for use on vehicles that are in the dealer's inventory and for sale, or while
being operated in connection with the dealer's business, but not valid for hire. It is important to
make sure you understand your garage liability insurance policy. The insurer may limit the
number of dealer plates you may have, who may use them, and the number of miles you may
drive the vehicles within a radius from your dealership. Plates that are lost or stolen need to be
reported to law enforcement. Replacement plates may be purchased. The DIVISION OF
MOTORIST SERVICES will periodically audit your plates; you must account for all of them.

Dealer Plates May Be Used On:

1. Vehicles that are operated in connection with a dealer's business.

2. Vehicles while being used for demonstration purposes, with or without a representative of
the dealer in the vehicle.
3. Vehicles that are in transit to or from a dealer's place of business.
4. Vehicles temporarily loaned, without compensation, to a customer by a dealer while the
customer's vehicle is being repaired by the dealer. NOTE: Make sure your insurance covers this
use.
5. Vehicles, such as service trucks, used by a dealer for hauling equipment or commodities,
or making service calls, at no charge to the customer. NOTE: This does not apply to wreckers.
6. Vehicles owned by the dealer while in inventory and for sale.
21
7. Trailers for the sole purpose of demonstrating trailers for sale.

NOTE: Auctions may only use dealer license plates to carry vehicles to the auction and to
demonstrate vehicles in the auction area.

Dealer Plates May Not Be Used On:

1. Service vehicles or wreckers used for hauling or making service calls for compensation or
hauling property for compensation.
2. Parts or supply trucks calling on retail or wholesale trade. Such vehicles must carry regular
plates because of their competitive nature.
3. Wreckers owned by or in the inventory of a dealership, even if they are not being
compensated for the use of the wrecker.
4. Car carriers even when the truck, trailer and vehicles being hauled are in the dealer's
inventory.
5. Any vehicle to avoid the titling and registration process and the payment of sales tax
when the vehicle is not exempt.

The DIVISION OF MOTORIST SERVICES, law enforcement and the Department of Revenue
takes the misuse of dealer plates very seriously. You must control the use of your dealer plates.
It will keep you out of trouble with regulatory agencies and may prevent lawsuits.

Temporary Tags

The law allows dealers to issue temporary tags. This is an important privilege because it enables
dealers to deliver a vehicle to a customer immediately when a customer does not have a valid
license plate to transfer to the newly acquired vehicle. Dealers must issue temporary tags
through a print-on-demand system. This means each dealer must have a computer, laser printer,
internet connection and must retain the services of a DIVISION OF MOTORIST SERVICES
certified provider. Certified providers allow dealers to communicate with the DIVISION OF
MOTORIST SERVICES computer so customer and vehicle information may be entered, after
which time a temporary tag is printed on blank card stock (furnished by the provider). Pre-
printed temporary tags may only be issued during a system outage.

Dealers may purchase back-up pre-printed temporary tags from the tax collector or DIVISION
OF MOTORIST SERVICES regional offices. They are sold in lots of 5 and cost $2.00 each plus
a $2.50 service fee ($3.00 at a branch office) for the entire transaction. However, dealers will be
limited to purchasing a maximum of 25 pre-printed tags.

A dealer must not issue more than two tags to the same owner, for the same vehicle. The
tags are valid for 30 days. Dealers are not authorized to sell tags to anyone other than their own
customers and dealers may not loan temporary tags to another dealer.

Dealers must maintain a log and documentation of all temporary tags purchased and issued for a
period of five years from the date the tag was issued. Print-on-demand tag logs are electronically
created by the provider. This report may be downloaded by the dealer and printed as needed. If a
dealer must issue a pre-printed temporary tag during a system outage, DHSMV form 82082
must be completed and maintained for a period of five years. Failure to maintain accurate
22
records for temporary tags may result in administrative action against a dealer's license and the
suspension of the privilege to issue temporary tags.

Dealers may also use temporary tags to transport vehicles to and from an "off premises" sale.
The temporary tag and temporary registration must be completed. The tag will be made out to
the licensed dealer. Make sure your insurance policy covers this use of a temporary tag.

If issuing a pre-printed temporary tag (during a system outage), it must be filled out using
indelible ink so the information will not fade from sunlight. Temporary tags must be
conspicuously displayed in the rear license plate bracket. On vehicles requiring front display of
license plates, such as big trucks, temporary tags must be displayed on the front of the vehicle in
the location where the metal license plate would normally be displayed. Smaller temporary tags
for motorcycles are available for dealers who sell motorcycles.

When issuing pre-printed temporary tags, the most common error that occurs is issuing the tag
with an incorrect expiration date. You must count the day of issuance as part of the 30 days.
You must also remember that all months do not have 30 days. Use a calendar or use the chart in
Exhibit DL-12 to calculate the exact expiration date. Print-on-demand tags will automatically
record the correct expiration date.

Temporary tags cannot be issued to consumers who do not have insurance. You must verify
proof of insurance before you issue a temporary tag. If a consumer does not have insurance you
cannot issue a temporary tag to them. If the consumer signs a non-use affidavit you cannot issue
a temporary tag to their vehicle.

If you sell a vehicle to an out of state resident, you may issue a 30 day temporary tag to the
consumer for in-transit purposes providing they supply you with proof of insurance from the
consumer's home state. In this case the dealer may reassign the MCO or title to the consumer.
The consumer is then responsible for applying for a title and registration in their home state
within 45 days. You must also collect the appropriate sales tax from the consumer, based on the
consumer's home state sales tax rate. Check with the Department of Revenue for further
guidance. NEW: DHSMV 84061 Declaration Affidavit for a Motor Vehicle Which Will Be
Titled and Registered in Another State or Country form must be obtained from the
purchaser. NOTE: Use this form even when the vehicle is shipped to the customer and
he/she takes responsibility for title and registration.

Dealers may transfer a hard tag from the customer’s trade-in or other customer vehicle to the
newly purchased vehicle using the state approved vendor.

The dealer is responsible to run a criminal background on employees before gaining

authorization for them to issue temporary tags.

Records Access

Florida Law allows for licensed dealers to obtain information from the records of the Department
of Highway Safety and Motor Vehicles (DHSMV) for professional or business use only. The
dealer may call the public service section of the Division of Motorist Services at (850) 617-2000
between the hours of 8:00 AM and 4:30 PM and receive title, lien and registration information
23
on vehicles. The dealer must provide their dealer license number and may receive information
for up to five vehicles per call.

Some counties have a computerized telephone system that allows access to the DHSMV records
through the county tax collector. Using a touch tone phone you are able to key in the appropriate
information and receive information back to you either verbally or through your fax machine.
This system is known as Tag Talk (different name used in certain counties) and is not available
in every county. Check with your county tax collector. The DIVISION OF MOTORIST
SERVICES has a similar program available 24 hours a day 7 days a week that requires you to
have a PIN. Exhibit DL-13 is a sample of the PIN request. If all you need is basic information
(without owner's name and address), you can obtain it for any vehicle or vessel titled and/or
registered in Florida at the DHSMV website located at: www.hsmv.state.fl.us. You can also
obtain information regarding the validity of a Florida driver license from this site. Or a dealer
may desire to have direct access to the DHSMV data base through a private vendor, which
enables you to directly retrieve all Florida title and registration records through your computer.
Access is obtained through the Internet. There is a fee for each record obtained; in addition,
there may be a monthly access charge. This service is well worth the cost if it prevents a bad
transaction on your part.

Off Premises Sales

Motor vehicle dealers are allowed to obtain a supplemental license (permit) to conduct an "off-
premises" sale, not to exceed 10 consecutive days. These are commonly referred to as "stadium
sales", "fairground sales" and "tent sales". They are essentially temporary sales where a dealer
brings inventory and staff to sell vehicles at a temporary event. There is no fee for the permit,
however, the dealer must notify the DIVISION OF MOTORIST SERVICES of the dates and
location of the sale, display a sign at the location clearly identifying the dealer, and provide staff
to work at the temporary location for the duration of the sale. Additionally, the dealer must meet
all local government permitting requirements and have permission of the property owner (via a
written lease or agreement) to sell at that location. Franchised dealers will also need
documentation that they have notified their suppliers at least 5 days prior to the sale and have
proof that the sale has been approved. If no approval or disapproval is received within 2 working
days after notification to the supplier by the dealer of the sale, it will be deemed approved by the
supplier. You may wish to contact your insurance company to ensure you will be covered for
any loss or damage that occurs during the sale.

INDEPENDENT DEALERS: PRELICENSING SCHOOL REQUIREMENT

Each independent dealer license applicant (owner, partner, officer, or director of the licensee),
or a full-time employee of the licensee that holds a responsible management-level position has to
successfully complete training by a licensed motor vehicle dealer training school.

INDEPENDENT DEALERS — CONTINUING EDUCATION REQUIREMENTS:

Effective October 1, 2006, either the independent dealer (owner, partner, officer, or director of
the licensee) or a full-time employee of the licensee that holds a responsible management-level
position must complete 8 hours of continuing education training every two years.

FRANCHISED DEALERS:

Any applicant for a new franchised motor vehicle dealer license who has held a valid franchised
24
motor vehicle dealer license continuously for the past 2 years and who remains in good standing
with the department is exempt from the prelicensing training requirement.

25
 List of Exhibits
EXHIBIT DL 1: Sample of Dealer License………………………………..…............. 27

EXHIBIT DL 2: PIN Letter…………………………………………………………............... 28

EXHIBIT DL 3: Division of Motorist Services Regional Offices……............. 29

EXHIBIT DL 4: Surety bond for Motor Vehicle Dealers……………............... 30

EXHIBIT DL 5: Irrevocable Letter of Credit……………………………….............. 31

EXHIBIT DL 6: License Application Check List…………………………............... 32

EXHIBIT DL 7: Rule on License and Location Requirements……............... 33

EXHIBIT DL 8: Sample Vehicle Purchase Record……………………….............. 37

EXHIBIT DL 9: Sample Vehicle Sales Record……………………………............... 38

EXHIBIT DL 10: OffͲLine Issuance of a PreͲPrinted Temporary

License Plate……………………………………………………................ 39
EXHIBIT DL 11: Sample Temporary Tag Record…………………....................... 40
EXHIBIT DL 12: 30ͲDay Temporary Tag Schedule………………………............... 41

EXHIBIT DL 13: Request for DHSMV Access Code………………………............. 43

EXHIBIT DL 14: Dealer License Statute………………………………………............. 44

EXHIBIT Dl 15: Dealer License Application………………………………............. 53

EXHIBIT DL 16: Renewal Application………………………………………................ 59

EXHIBIT DL 17: Forms to Use in Each Deal…………………………………............ 63

EXHIBIT DL 18: Statutes on Dealer Plates and Temporary Tags................. 66

EXHIBIT DL 19: Out of State Title and Registration by Buyer……................ 69

EXHIBIT DL 20: Dealer Records Inspection Report……………………............... 71

EXHIBIT DL 21: Modification to Dealer License for Licensed Motor Vehicle,
Mobile Home, or Recreational Vehicle Dealers HSMV 86072............................77

26
 EXHIBIT DL-1

LICENSE CERTIFICATE

STATE OF FLORIDA
DEPARTMENTOFHIGHWAYSAFETYANDMOTORVEHICLES
DIVISION OF MOTOR VEHICLES

License

LICENSE NUMBER
VI1234567/1
PRIMARY LOT

EFFECTIVE DATE EXPIRATION DATE

03/01/2012 FOR A DEALER IN MOTOR VEHICLES 09/30/20112

I’M GOING MOBILE HOMES OF BARTOW LLC

1234 ANY ROAD
BARTOW, FL 33330

THIS CERTIFIES THAT

I’M GOING MOBILE HOMES OF BARTOW LLC

AT 1234 ANY ROAD

BARTOW, FL 33330

IS HEREBY LICENSED UNDER THE PROVISIONS OF SECTION

320.77, FLORIDA STATUTES TO CONDUCT AND CARRY ON BUSINESS AS A
DEALER IN MOBILE HOMES AT THE ABOVE DESCRIBED LOCATION

GIVEN UNDER MY HAND AND SEAL THE ABOVE DATE WRITTEN.

BUREAU CHIEF DIRECTOR

--00000000

27
 EXHIBIT DL-2
Dealer License Receipt
CNTY/AGY: E8 /27 Transaction ID: 441216140
REPORT: 1090 Local Trans ID: 1773
3atch Number: 1685

Date: 02/15/2012 PIN: 8101

Licensee:
Type/Num/Suffix: PRIMARY LOT

DEA Name:

Mailing Address:

Transaction Description: ORIGINAL DEALER LICENSE

Fee Description: • Amount:

DEALER LICENSE FEE 300.00
Total Fees: 300.00

28
EXHIBIT DL-3

Bureau of MV Field Operations, Region I Bureau of MV Field Operations, Region VI

Region I/IX Region VI
1135 Banks Road NET PARK, Suite 2228
Margate, Florida 33063 5701 East Hillsborough Avenue
Telephone = (954) 969-4216 Tampa, Florida 33610
FAX = (954) 969-4237 Telephone = (813) 612-7110
Responsible for Broward County FAX = (813) 612-7111
Responsible for Citrus, Hernando, Hillsborough,
470 Columbia Drive, Bldg. E, Suite 200 Pasco, Pinellas, Polk and Sumter Counties
West Palm Beach, Florida 33409
Telephone = (561) 640-6820 Region VII
FAX = (561) 640-6835 Room B-142, Neil Kirkman Building, Mail Stop 76
Responsible for Indian River, Okeechobee, Martin, Tallahassee, Florida 32399-0600
Palm Beach and St. Lucie Counties Telephone = (850) 617-2999
FAX = (850) 617-5180
Region II Responsible for Dixie, Franklin, Gadsden,
318 Southeast 25th Avenue Hamilton, Jefferson, Lafayette, Leon, Liberty,
Ocala, Florida 34471 Madison, Suwanee, Taylor and Wakulla Counties
Telephone = (352) 732-1267
FAX = (352) 732-1459 Bureau of MV Field Operations, Panama City
Responsible for Alachua, Columbia, Gilchrist, Lake, 6030 County Road 2321
Levy, Marion and Putnam Counties Panama City, Florida 32404
Telephone = 850 872-4158
Region III FAX = 850 872-7764
3200 Armsdale Road, Suite 13 Responsible for Bay, Calhoun, Gulf, Jackson and
Jacksonville, Florida 32218 Washington Counties
Telephone = (904) 924-1524
FAX = (904) 924-1525 or 924-1530 Bureau of MV Field Operations, Pensacola
Responsible for Baker, Bradford, Clay, Flagler, 185-C Airport Boulevard
Duval, Nassau, St. Johns and Union Counties Pensacola, Florida 32505
Telephone = 850 475-5415
Region IV/V FAX = 850 475-5423
4101 Clarcona-Ocoee Road, Suite 160 Responsible for Escambia, Holmes, Okaloosa,
Orlando, Florida 32810 Santa Rosa and Walton Counties
Telephone = (407) 445-7400
FAX = (407) 445-7411 Region VIII
Responsible for Orange and Osceola Counties 323 10th Avenue West, Suite 200
Palmetto, Florida 34221
1354 South Woodland Boulevard Telephone = (941) 723-4551
DeLand, Florida 32720 FAX = (941) 723-4553
Telephone = (386) 736-5108 Responsible for Charlotte, Collier, Desoto, Glades,
FAX = (386) 736-5112 Hardee, Hendry, Highlands, Lee, Manatee and
Responsible for Brevard, Seminole and Volusia Sarasota Counties
Counties
Region X
7795 West Flagler Street Suite 82C
Miami, Florida 33144
Telephone = (305) 265-3003
FAX = (305) 265-3060
Responsible for Dade and Monroe Counties
Updated 04-11-11

29
STATE OF FLORIDA SURETY BOND
DEPARTMENT OF HIGHWAY MOTOR VEHICLE DEALER
SAFETY and MOTOR VEHICLES
2900 APALACHEE PARKWAY DL-4
ROOM A312, Mailstop #65
TALLAHASSEE, FLORIDA 32399-0500

KNOW ALL MEN BY THESE PRESENTS: BOND NUMBER: _

That we
as principal and
a surety
company qualified to do business in the State of Florida, as surety are held and firmly bound unto the duly appointed and qualified
Director of the Division of Motorist Services of the State of Florida, and the successors in office of said Director, in the penal sum
of Dollars, for the payment whereof well and truly to be made, we do hereby jointly and severally bind ourselves, our
heirs, legal representatives, successors and assigns, firmly these presents:

Signed and Sealed this day of , .

The condition of the above obligation is such that:

WHEREAS, the above named principal has made to the obligee hereunder application for a license, under Section 320.27, Florida
Statutes, to engage in the business of buying, selling or dealing in motor vehicles or offering or displaying motor vehicles for sale, as
defined by the said law, and
WHEREAS, the above named principal is required as a condition precedent to his appointment as such dealer to deliver annually to
the obligee hereto a good and sufficient surety bond for the license period conditioned that said principal shall comply with the conditions
of any written contract made by such dealer in connection with the sale or exchange of any motor vehicles and shall not violate any of the
provisions of Chapter 319 and 320, Florida Statutes, in the conduct of the business for which he is licensed, and
WHEREAS, such bond shall be in favor of any person in a retail or wholesale transaction who shall suffer any loss as a result of
any violation of the conditions hereinabove contained.
NOW, THEREFORE, if the above named principal shall fully comply with the conditions of any written contract made by him as
such dealer in connection with the sale or exchange of any motor vehicles, and shall pay or cause to be paid to any person in a retail or
wholesale transaction any loss or damages which such person shall sustain as a result of any failure to comply with the conditions of any
written contract made by such dealer in connection with the sale or exchange of any motor vehicle or as a result of any violation of the
provisions of Chapter 319 or 320, Florida Statutes, in the conduct of the business of which he is licensed, then this obligation shall be void,
otherwise to remain in full force and effect.
This bond becomes effective as of , , in support of a license issued for the term ending
, , and may be continued by certificate each year in support of any license issued for any subsequent year.
Provided, however, that the aggregate liability of the surety hereunder shall in no event, in any one (1) year, exceed the sum of the
bond.
Provided, further, the surety shall have the right to terminate its liability hereunder by serving written notice of its election so to do,
by United States registered mail, upon the obligee, and thereupon the surety shall be discharged from any liability hereunder for any
default of the principal, after the expiration of thirty (30) days from and after service of such notice.

_ _
NAME OF BUSINESS SIGNATURE OF SURETY AGENT (SEAL)
_ _
SIGNATURE OF PRINCIPAL ADDRESS OF SURETY AGENT
_ _
NAME OF SURETY BOND COMPANY CITY/STATE/ZIP CODE
_ _
ADDRESS OF SURETY BOND COMPANY TELEPHONE NUMBER
_ _
CITY/STATE/ZIP CODE TYPED NAME OF SURETY AGENT
_
TELEPHONE NUMBER

HSMV 86020 (Rev. 08/11) 30

30
STATE OF FLORIDA IRREVOCABLE LETTER OF CREDIT
DEPARTMENT OF HIGHWAY MOTOR VEHICLE DEALER
SAFETY and MOTOR VEHICLES
2900 APALACHEE PARKWAY DL-5
ROOM A312, Mailstop #65
TALLAHASSEE, FLORIDA 32399-0500

IRREVOCABLE LETTER OF CREDIT NUMBER:

This letter of credit is issued by ,

authorized to do business in the state of Florida as a bank (hereinafter “the Bank”) at the request of
(hereinafter"the Principal"), to allow the Principal to
fulfill a condition precedent to his appointment as a motor vehicle dealer by the Department of Highway Safety
and Motor Vehicles (hereinafter "the Department"). The Principal shall deliver annually to the Department a
surety bond or irrevocable letter of credit for the license period for the protection of any person in a retail or
wholesale transaction who shall suffer any loss as a result of the Principal's failure to comply with the
conditions of any written contract made by such Principal in connection with or as a result of any violation of
the provisions of Chapter 319 or 320, Florida Statutes, in the conduct of business as a motor vehicle dealer.

The Bank agrees to honor demands for payment by any person suffering a loss as specified above.
Provided, however, that the aggregate liability of the Bank hereunder shall, in no event, in any one year, exceed
$25,000.

This letter becomes effective as of , in support of a license issued

for the term ending , and may be continued by certificate each year in
support of any license issued for any subsequent year.

NAME OF DEALERSHIP SIGNATURE OF BANK OFFICER

SIGNATURE OF PRINCIPAL TITLE

TYPED OR PRINTED NAME BANK

DEALERSHIP ADDRESS ADDRESS

CITY STATE ZIPCODE CITY STATE ZIPCODE

BANK TELEPHONE NUMBER

(BANK SEAL)

31
 DL-6

Application Check Sheet

Completed DIVISION OF MOTORIST SERVICES Application Form (HSMV 86056)

Location approved by DIVISION OF MOTORIST SERVICES Compliance Examiner

Current Dealer Training Certificate

Federal Employer I.D. Number From IRS or S.S.# and Affidavit

State of Florida Sales Tax Registration Number

$25,000 Surety Bond or Irrevocable Letter of Credit

Garage Liability Insurance (or) General Liability w/Automobile policy

Electronic Fingerprint(s) Receipt(s) For All Owners/Officers/Directors

If Property Leased Copy of Lease, If Owned Copy of Deed or Tax Record

If Corporation, Copy of Corporate Charter and Minutes Reflecting Current

Officers
If LLC/LLP Articles of Organization

If Using A Fictitious Trade Name, Copy of filing with Secretary of State

Sign Installed

Fees: $300.00 For Application

Other Items Requested by Compliance Officer/Examiner

COMPLIANCE EXAMINER NAME:

COMPLIANCE EXAMINER PHONE NUMBER:

DIVISION OF MOTORIST SERVICES Phone Number:

32
 DL-7

15C-7.003 Application for License; Requirements for Office, Display Space and Operation; Denial,
Suspension or Revocation; Implementation.
(1) Purpose and Scope. The purpose of this rule is to provide requirements for completion of the
application for a motor vehicle dealer's license, to provide requirements for the place of business,
including offices and display spaces of motor vehicle dealers, and to provide requirements for the
operation of a motor vehicle dealership.
(2) Definitions.
(a) The words or phrases: Department, person, franchised motor vehicle dealer, independent motor
vehicle dealer, wholesale motor vehicle dealer, motor vehicle auction, motor vehicle dealer and
motor vehicle broker as used in this rule shall have the meanings ascribed to them in section
320.27 (1), Florida Statutes.
(b) The words or phrases as used in this rule shall have the following meanings;
1. Applicant — The business on behalf of whom a natural person signs an application for a
motor vehicle dealer's license in the space designated for the applicant's signature.
2. Barrier —Any permanent structure that separates or marks a boundary.
3. Corporate Officer — The president ,vice president, secretary, treasurer, or director of any
organization incorporated under the laws of Florida or any other state.
4. Display Space — The unoccupied land, or space within a building, at a place of business, on
or within which a motor vehicle dealer displays motor vehicles for sale.
5. Rental or Lease Agreement — A written contract with specific terms and fees between a motor
vehicle dealer and a property owner which conveys to the motor vehicle dealer rights to
occupy specified property.
6. Office — A structure of a permanent nature where the business of dealing in motor
vehicles can be conducted.
7. Residence — A structure where a person or persons are domiciled or actually live. The
definition also shall include, but not be limited to, structures such as tool sheds, storage sheds
or free standing or attached garages located on the same property as the residence or located
within a common enclosure or boundary which surrounds the residence.
8. True Copy — A complete and accurate photographic copy of a document which reflects all
characters, marks and signatures contained in the original.
(3) Applications for Motor Vehicle Dealer's License.
(a) All applications for motor vehicle dealer licenses shall be on the form HSMV 84011, Application
for a License as a Motor Vehicle, Mobile Home, or Recreational Vehicle Dealer (Rev. 6/88), hereby
adopted by reference.
(b) All applications shall be complete in all details and shall be signed by the applicant.
(c) All applications shall have attached all documentation and endorsements necessary to substantiate
the applicant's compliance with the requirements of section 320.27 (3), Florida Statutes, and this
rule. Such documentation or endorsement shall include:
1. Proof that the applicant owns the place of business and the date it was acquired, or, in the
case of lease or rental, a true copy of the written rental or lease agreement signed by the
property owner and the applicant.
2. Designation of the name under which the dealership will operate.
3. If the dealership is to operate in a corporate capacity, a true copy of the corporate charter,
minutes of the corporation's meeting at which the corporate officers were designated, and a
certificate of good standing from the state in which the business is incorporated.
4. If the business is to operate as a partnership, a true copy of any partnership agreement.

33
 5. A surety bond or an irrevocable letter of credit prescribed by section 320.27 (10), Florida
Statutes, in the amount of $25,000. An irrevocable letter of credit must be issued by a
bank authorized to do business in this state. A surety bond for a franchised motor vehicle
dealer shall be submitted on form HSMV 84253 Franchise Motor Vehicle Dealer
Irrevocable Letter of Credit (Rev. 9/86), hereby adopted by reference. An irrevocable
letter of credit for an independent or wholesale motor vehicle dealer or motor vehicle
auction shall be submitted on form HSMV 84252 Independent Motor Vehicle Dealer
Irrevocable Letter of Credit (Rev. 9/86), hereby adopted by reference.
6. A statement completed and signed on form HSMV 84254 Garage Liability Statement
(Rev. 8/89), hereby adopted by reference, that garage liability insurance of the type and in
the amounts prescribed in section 320.27 (3), Florida Statutes, has been obtained,
including the name and address of the insurance company and the policy number.
7. A declaration as to whether or not the applicant, any partner or any corporate officer or
director has been found guilty of any felony or offense in any jurisdiction which would be
a felony if committed in Florida, or has been found guilty of a violation of any motor
vehicle law in any jurisdiction (other than traffic laws) and a complete certified copy of the
court records pertaining to any such conviction.
8. If applicant is to act as a franchised motor vehicle dealer, the requirements of Rule 15C-
1.008, Florida Administrative Code, must be met.
9. Verification that the applicant or one or more of his employees has attended and
completed a training program for motor vehicle dealer license applicants within the six
months preceding filing of an initial application as prescribed by Section 320.27 (4),
Florida Statutes.
10. Two positive print photographs of the proposed licensed place of business. The
photographs shall be a minimum of 3" x 4" in size. One photograph shall depict the exterior
of the dealership from a distance to clearly show two (2) sides of the building, one side of
which shall be the public entrance into the dealership. The second photograph shall show
the remaining sides of the building which will house the dealership. At least one of the
photographs must reflect the area to be used for display of vehicles/units offered for sale, if
display space is required.
(4) Requirements for Office Space.
(a) Each licensed motor vehicle dealer shall maintain an office as part of his place of business. The
offices of motor vehicle dealers shall conform to the following standards:
1. No office shall be operated from or maintained in any residence.
2. The office must be in a permanent structure at the licensed location. In the case of an office
trailer, the office must be anchored or tied down as required by Rule 15C-1.010, F.A.C.
3. Each office shall have a minimum of 100 square feet of interior floor space exclusive of any
hallways, closets, or restrooms and a minimum 7' ceiling.
4. The office must be clearly separated from any other business which is being operated in the
structure or building which houses the dealership.
(5) Requirements for Display Space.
(a) Each licensed motor vehicle dealer shall maintain a display space as part of his place of business.
(b) Such display space shall be for the purpose of displaying motor vehicles offered for sale by the
motor vehicle dealer and shall conform to the following specifications:
1. The display space of each licensed motor vehicle dealer will be of a sufficient size to
store and display all vehicles offered for sale. The display space may be located
within a building.
2. Display spaces shall be under the exclusive control of the motor vehicle dealer and
shall not include an area or space set aside for customer, employee or general public
parking nor shall it include any public right-of-way.

34
 3. Display spaces shall be contiguous to the dealership office or shall be situated so as
to allow easy access by dealership customers.
4. Display spaces, whether outside or inside a building, shall have immediate and direct
access to a public street or highway or be situated on property, owned or leased by
the dealer, to which public access has been granted.
5. Display spaces shall physically be divided from any other motor vehicle dealer's
display space by a permanent barrier no less than three feet in height and erected in such a
manner as to clearly distinguish one dealer's display space from another dealer's display space.
(6) Requirements of Operation.
(a) Each licensed motor vehicle dealer of his designee shall be available to consumers and the
department during regular business hours.
(b) The business of a motor vehicle dealer must be the principal business conducted at the
licensed location.
(c) Licenses are not transferable and may not be transferred by any means by the licensee to a
second party. Dealerships may be operated by agents or employees of the licensee; however,
the licensee shall be responsible for the operation of the dealership.
(d) To insure availability of the licensee, the following standards must be met and maintained by
each license. Each dealer:
1. Shall post hours of operation in a clear manner at or near the main entrance to the dealership
office on a placard, sign or by other durable means.
2. Shall maintain the posted hours of operation.
3. Shall provide the department with all information and telephone numbers necessary to contact
the dealer. Information and telephone numbers shall be provided in writing to the Division of
Motorist Services Regional Administrator.
4. Shall insure that information and telephone numbers required in the preceding subsection are
current and correct.
5. Shall make his dealership records available to inspection by the department during reasonable
hours.
6. Shall be familiar with the obligations and responsibilities of a motor vehicle dealer as provided
in Chapters 319 and 320, Florida Statutes; shall be knowledgeable of the procedures necessary
to assign, transfer or apply for title to a motor vehicle and of the requirements and procedures
necessary to transfer or apply registration of motor vehicles.
7. Shall make every reasonable effort to resolve, in an equitable and expeditious manner, all
complaints which have been filed against him.
8. Shall, upon revocation or suspension of his license:
(a) Surrender the license to the department,
(b) Surrender all dealer registration plates assigned to him to the department,
(c) Surrender, for refund, all temporary tags purchased by him, and
(d) Cease operation of the business.
9. Shall notify the department in writing of a permanent closing or cessation of business at the
main or any licensed supplemental location.
10. Shall have a permanent sign identifying the dealership at its place of business. Such sign shall
clearly identify the dealership and shall use lettering or other graphic representation of
sufficient size and color so as to be visible and readable at a distance of 50 yards from the
public right-of-way serving the dealership.
11. Shall maintain a location address for the place of business which is assigned by the United
States Postal Service.
12. Shall report any change of address to the department and shall receive approval for any new
place of business prior to relocating the business.

35
(7) Prohibitions. No licensed motor vehicle dealer shall authorize or knowingly permit or allow any person,
employee, agent or representative to use the dealer's license identification number to effect a sale of a
motor vehicle, a title transfer, or a registration transaction for the sale of a motor vehicle wherein the
purchaser of that motor vehicle was not given notice that the sale, transfer or registration was not
made by a licensed motor vehicle dealer.
(8) Under section 320.27 (9), Florida Statutes, the department is authorized to deny, suspend or revoke a
dealer license for failure to comply with the requirements of this rule.
(9) Standards of Implementation.
(a) This rule shall be fully applicable to all applicants for motor vehicle dealer's licenses whose
applications are received on or after the effective date of this rule.
(b) Persons licensed as motor vehicle dealers on the effective date of this rule shall comply with the
requirements for office space and display space not later than the time of application for renewal of
license for the third renewal period following the effective date of the rule. The requirements for
business operation as prescribed in Rule 15C-7.003(6) shall be applicable to all licensees upon the
rule's effective date.
(10) All forms mentioned in this rule may be obtained free of charge from the Department by contacting
any License and Registration Inspector or any Regional Office of the Bureau of Licenses and
Enforcement, Division of Motorist Services. Addresses and telephone numbers are available from
the bureau, Room 308, 2900 Apalachee Parkway, Tallahassee, Florida 32399.
Specific 319.27; 320.011 FS. Law Implemented 319, 320.27 FS. History -New 9-24-90

36
 VEHICLE PURCHASE RECORD
.. .. .. . - . -. .. - .... ..
- - Name & Address of-- -···
... ...
No I Date ~ Year Make ! Body Cost V.I.N. Owner Title No.
Style

m
><
I

"
"'~
[II
-t
0

?'a..
rI
..... 00

~..4 ~
i

llV
-

37
 VEHICLE SALES RECORD

No. Date Year Make Body Style V.I.N. Name & Address Title Trans. Date TT Tag
# Date Issued

..
t• '.. m

~....'
X
::I:
OJ
-t
...... c
r;-
.,~ <.0
~

- .,.. "-..I
~

..........
'--,

38
 STATE OF FLORIDA
DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES
DIVISION OF MOTORIST SERVICES DL-10
SUBMIT THIS FORM TO YOUR LOCAL TAX COLLECTOR OFFICE
www.flhsmv.gov/offices/

OFF-LINE ISSUANCE OF A PRE-PRINTED TEMPORARY LICENSE PLATE

This is to certify that temporary license plate number was issued

on to
(Date) (Purchaser’s Name)
at .
(Purchaser’s Address)
The reason for the off-line issuance is

Year Make/Manufacturer Body Type Title Number

Vehicle Identification Number

Pre-printed temporary license plates may only be used during a system outage. This is to
certify that the above license plate was issued during a system outage. I understand that
the issuance of this temporary license plate must be reported to the department
electronically within one business day of the issuance of the plate.

(Dealership’s Name)

(Current Dealer License Number, including suffix, if additional location)

(Printed Name of Dealer’s Authorized Representative)

(Signature of Dealer’s Authorized Representative)

This form must be retained in the dealer’s files for 5 years. A copy must be retained
in the deal jacket.
Section 320.131(9) (b), Florida Statutes, allows for the issuance of a pre-printed
temporary license plate, if a system outage occurs. This form must be completed for the
issuance of a pre-printed temporary license plate and submitted to a tax collector’s office
within one business day.
NOTE: Preprinted Temp Tags can only be issued by a dealer that participates in
Electronic Temporary Registrations (ETR) when a system outage occurs
preventing ETR issuance or by any dealer for a trailer weighing less than 2,000
pounds.
Check your local phone book government pages or visit the following website for current mailing addresses: http://www.flhsmv.gov/offices/

HSMV 82082 (Rev. 10/11)

39
 DL-11

Purchased From: Date:

Temporary Tags Purchased — From No. To No.

Dealer Name: Address:

Temporary Date Stock

Tag No. VIN Year Make Name and Address Issued Number

40
 30 DAY TEMPORARY TAG DATES DL-12

LEAP YEAR LEAP YEAR

JANUARY FEBRUARY
JANUARY FEBRUARY MARCH APRIL MAY
01/01--01/30 01/01--01/30 02/01--03/02 02/01--03/01 03/01--03/30 04/01--04/30 05/01--05/30
01/02--01/31 01/02--01/31 02/02--03/03 02/02--03/02 03/02--03/31 04/02--05/01 05/02--05/31
01/03--02/01 01/03--02/01 02/03--03/04 02/03--03/03 03/03--04/01 04/03--05/02 05/03--06/01
01/04--02/02 01/04--02/02 02/04--03/05 02/04--03/04 03/04--04/02 04/04--05/03 05/04--06/02
01/05--02/03 01/05--02/03 02/05--03/06 02/05--03/05 03/05--04/03 04/05--05/04 05/05--06/03
01/06--02/04 01/06--02/04 02/06--03/07 02/06--03/06 03/06--04/04 04/06--05/05 05/06--06/04
01/07--02/05 01/07--02/05 02/07--03/08 02/07--03/07 03/07--04/05 04/07--05/06 05/07--06/05
01/08--02/06 01/08--02/06 02/08--03/09 02/08--03/08 03/08--04/06 04/08--05/07 05/08--06/06
01/09--02/07 01/09--02/07 02/09--03/10 02/09--03/09 03/09--04/07 04/09--05/08 05/09--06/07
01/10--02/08 01/10--02/08 02/10--03/11 02/10--03/10 03/10--04/08 04/10--05/09 05/10--06/08
01/11--02/09 01/11--02/09 02/11--03/12 02/11--03/11 03/11--04/09 04/11--05/10 05/11--06/09
01/12--02/10 01/12--02/10 02/12--03/13 02/12--03/12 03/12--04/10 04/12--05/11 05/12--06/10
01/13--02/11 01/13--02/11 02/13--03/14 02/13--03/13 03/13--04/11 04/13--05/12 05/13--06/11
01/14--02/12 01/14--02/12 02/14--03/15 02/14--03/14 03/14--04/12 04/14--05/13 05/14--06/12
01/15--02/13 01/15--02/13 02/15--03/16 02/15--03/15 03/15--04/13 04/15--05/14 05/15--06/13
01/16--02/14 01/16--02/14 02/16--03/17 02/16--03/16 03/16--04/14 04/16--05/15 05/16--06/14
01/17--02/15 01/17--02/15 02/17--03/18 02/17--03/17 03/17--04/15 04/17--05/16 05/17--06/15
01/18--02/16 01/18--02/16 02/18--03/19 02/18--03/18 03/18--04/16 04/18--05/17 05/18--06/16
01/19--02/17 01/19--02/17 02/19--03/20 02/19--03/19 03/19--04/17 04/19--05/18 05/19--06/17
01/20--02/18 01/20--02/18 02/20--03/21 02/20--03/20 03/20--04/18 04/20--05/19 05/20--06/18
01/21--02/19 01/21--02/19 02/21--03/22 02/21--03/21 03/21--04/19 04/21--05/20 05/21--06/19
01/22--02/20 01/22--02/20 02/22--03/23 02/22--03/22 03/22--04/20 04/22--05/21 05/22--06/20
01/23--02/21 01/23--02/21 02/23--03/24 02/23--03/23 03/23--04/21 04/23--05/22 05/23--06/21
01/24--02/22 01/24--02/22 02/24--03/25 02/24--03/24 03/24--04/22 04/24--05/23 05/24--06/22
01/25--02/23 01/25--02/23 02/25--03/26 02/25--03/25 03/25--04/23 04/25--05/24 05/25--06/23
01/26--02/24 01/26--02/24 02/26--03/27 02/26--03/26 03/26--04/24 04/26--05/25 05/26--06/24
01/27--02/25 01/27--02/25 02/27--03/28 02/27--03/27 03/27--04/25 04/27--05/26 05/27--06/25
01/28--02/26 01/28--02/26 02/28-03/29 02/28--03/28 03/28--04/26 04/28--05/27 05/28--06/26
01/29--02/27 01/29--02/27 02/29--03/29 03/29--04/27 04/29--05/28 05/29--06/27
01/30--02/28 01/30--02/28 03/30--04/28 04/30--05/29 05/30--06/28
01/31--03/01 01/31--02/29 03/31--04/29 05/31--06/29

41
 30 DAY TEMPORARY TAG DATES

JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

06/01--06/30 07/01--07/30 08/01--08/30 09/01--09/30 10/01-10/30 11/01--11/30 12/01--12/30
06/02--07/01 07/02--07/31 08/02--08/31 09/02--10/01 10/02--10/31 11/02--12/01 12/02--12/31
06/03--07/02 07/03--08/01 08/03--09/01 09/03--10/02 10/03--11/01 11/03--12/02 12/03--01/01
06/04--07/03 07/04--08/02 08/04--09/02 09/04--10/03 10/04--11/02 11/04--12/03 12/04-01/02
06/05--07/04 07/05--08/03 08/05--09/03 09/05--10/04 10/05--11/03 11/05--12/04 12/05--01/03
06/06--07/05 07/06--08/04 08/06--09/04 09/06--10/05 10/06--11/04 11/06--12/05 12/06-01/04
06/07--07/06 07/07--08/05 08/07--09/05 09/07--10/06 10/07--11/05 11/07--12/06 12/07--01/05
06/08--07/07 07/08--08/06 08/08--09/06 09/08--10/07 10/08--11/06 11/08--12/07 12/08--01/06
06/09--07/08 07/09--08/07 08/09--09/07 09/09--10/08 10/09--11/07 11/09--12/08 12/09--01/07
06/10--07/09 07/10--08/08 08/10--09/08 09/10--10/09 10/10--11/08 11/10--12/09 12/10--01/08
06/11--07/10 07/11--08/09 08/11--09/09 09/11--10/10 10/11--11/09 11/11--12/10 12/11--01/09
06/12--07/11 07/12--08/10 08/12--09/10 09/12--10/11 10/12--11/10 11/12--12/11 12/12--01/10
06/13--07/12 07/13--08/11 08/13--09/11 09/13--10/12 10/13--11/11 11/13--12/12 12/13--01/11
06/14--07/13 07/14--08/12 08/14--09/12 09/14--10/13 10/14--11/12 11/14--12/13 12/14--01/12
06/15--07/14 07/15--08/13 08/15--09/13 09/15--10/14 10/15--11/13 11/15--12/14 12/15--01/13
06/16--07/15 07/16--08/14 08/16--09/14 09/16--10/15 10/16--11/14 11/16--12/15 12/16--01/14
06/17--07/16 07/17--08/15 08/17--09/15 09/17--10/16 10/17--11/15 11/17--12/16 12/17--01/15
06/18--07/17 07/18--08/16 08/18--09/16 09/18--10/17 10/18--11/16 11/18--12/17 12/18--01/16
06/19--07/18 07/19--08/17 08/19--09/17 09/19--10/18 10/19--11/17 11/19--12/18 12/19--01/17
06/20--07/19 07/20--08/18 08/20--09/18 09/20--10/19 10/20--11/18 11/20--12/19 12/20--01/18
06/21--07/20 07/21--08/19 08/21--09/19 09/21-10/20 10/21--11/19 11/21--12/20 12/21--01/19
06/22--07/21 07/22--08/20 08/22--09/20 09/22--10/21 10/22--11/20 11/22--12/21 12/22--01/20
06/23--07/22 07/23--08/21 08/23--09/21 09/23--10/22 10/23--11/21 11/23--12/22 12/23--01/21
06/24--07/23 07/24--08/22 08/24--09/22 09/24--10/23 10/24--11/22 11/24--12/23 12/24--01/22
06/25--07/24 07/25--08/23 08/25--09/23 09/25--10/24 10/25--11/23 11/25--12/24 12/25--01/23
06/26--07/25 07/26--08/24 08/26--09/24 09/26--10/25 10/26--11/24 11/26--12/25 12/26--01/24
06/27--07/26 07/27--08/25 08/27--09/25 09/27--10/26 10/27--11/25 11/27--12/26 12/27--01/25
06/28--07/27 07/28--08/26 08/28--09/26 09/28--10/27 10/28--11/26 11/28--12/27 12/28--01/26
06/29--07/28 07/29--08/27 08/29--09/27 09/29--10/28 10/29--11/27 11/29--12/28 12/29--01/27
06/30--07/29 07/30--08/28 08/30--09/28 09/30--10/29 10/30--11/28 11/30--12/29 12/30--01/28
07/31--08/29 08/31--09/29 10/31--11/29 12/31--01/29

42
 DL-13

Florida Department of Highway Safety and Motor Vehicles

To ensure privacy of our customers, we are instituting the following change in procedure
to obtain a vehicle owner information via the telephone. Please complete the form below
and mail to:
Department of Highway Safety & Motor Vehicles
Customer Service Center
2900 Apalachee Parkway, A130B, MS 73
Tallahassee, FL 32399

Request for DHSMV Access Code

I am requesting access to information from the Department of Highway Safety and Motor
Vehicles for the purpose of identifying an owner of a vehicle. My company will use this
information for lawful purposes only. My company is (check one)

Lending Institution Automobile Dealer Towing Company

Obtaining personal information under false pretenses is a state and federal crime. Under penalty
of perjury I swear that the information given below is true. I agree not to redisclose this
information exepct as provided in s. 119.07(3)(bb), F.S. I understand that unauthorized
redisclosure may subject me to civil and criminal penalties under state and federal laws and may
cause my access to this information to be terminated.

All information is required:

Company Name

Address _ City/State/Zip

Telephone Number ( ) Fax Number ( )

FEID#

Signature of Officer of above company

Print Name of Officer Title

An access code and directions will be faxed to the number shown above or mailed to your
attention. This access code cannot be assigned to you over the phone. When you receive the
access code, you may call 850/922-9000, and you will be able to use the automated option to
quickly access this information.

Do not write in this area

Account Number
Access Code Authorized by Date

State of Florida Department of Highway Safety and Motor Vehicles

43
 DL-14

DEALER LICENSE STATUTE

320.27 Motor vehicle dealers - NOTE: Always go online for most current version.
(1) DEFINITIONS.--The following words, terms, and phrases when used in this section have
the meanings respectively ascribed to them in this subsection, except where the context clearly
indicates a different meaning:
(a) "Department" means the Department of Highway Safety and Motor Vehicles.
(b) "Motor vehicle" means any motor vehicle of the type and kind required to be registered and
titled under chapter 319 and this chapter, except a recreational vehicle, moped, motorcycle
powered by a motor with a displacement of 50 cubic centimeters or less, or mobile home.
(c) "Motor vehicle dealer" means any person engaged in the business of buying, selling, or
dealing in motor vehicles or offering or displaying motor vehicles for sale at wholesale or retail,
or who may service and repair motor vehicles pursuant to an agreement as defined in s.
320.60(1). Any person who buys, sells, or deals in three or more motor vehicles in any 12-
month period or who offers or displays for sale three or more motor vehicles in any 12-month
period shall be prima facie presumed to be engaged in such business. The terms "selling" and
"sale" include lease-purchase transactions. A motor vehicle dealer may, at retail or wholesale,
sell a recreational vehicle as described in s. 320.01(1)(b)1.-6. and 8., acquired in exchange for
the sale of a motor vehicle, provided such acquisition is incidental to the principal business of
being a motor vehicle dealer. However, a motor vehicle dealer may not buy a recreational
vehicle for the purpose of resale unless licensed as a recreational vehicle dealer pursuant to s.
320.771. A motor vehicle dealer may apply for a certificate of title to a motor vehicle required to
be registered under s. 320.08(2)(b), (c), and (d), using a manufacturer's statement of origin as
permitted by s. 319.23(1), only if such dealer is authorized by a franchised agreement as defined
in s. 320.60(1), to buy, sell, or deal in such vehicle and is authorized by such agreement to
perform delivery and preparation obligations and warranty defect adjustments on the motor
vehicle; provided this limitation shall not apply to recreational vehicles, van conversions, or any
other motor vehicle manufactured on a truck chassis. The transfer of a motor vehicle by a dealer
not meeting these qualifications shall be titled as a used vehicle. The classifications of motor
vehicle dealers are defined as follows:
1. "Franchised motor vehicle dealer" means any person who engages in the business of
repairing, servicing, buying, selling, or dealing in motor vehicles pursuant to an agreement as
defined in s. 320.60(1).
2. "Independent motor vehicle dealer" means any person other than a franchised or
wholesale motor vehicle dealer who engages in the business of buying, selling, or dealing in
motor vehicles, and who may service and repair motor vehicles.
3. "Wholesale motor vehicle dealer" means any person who engages exclusively in the business
of buying, selling, or dealing in motor vehicles at wholesale or with motor vehicle auctions. Such
person shall be licensed to do business in this state, shall not sell or auction a vehicle to any
person who is not a licensed dealer, and shall not have the privilege of the use of dealer license
plates. Any person who buys, sells, or deals in motor vehicles at wholesale or with motor vehicle
auctions on behalf of a licensed motor vehicle dealer and as a bona fide employee of such licensed
motor vehicle dealer is not required to be licensed as a wholesale motor vehicle dealer. In such
cases it shall be prima facie presumed that a bona fide employer-employee relationship exists. A
wholesale motor vehicle dealer shall be exempt from the display provisions of this

44
section but shall maintain an office wherein records are kept in order that those records may be
inspected.
4. "Motor vehicle auction" means any person offering motor vehicles or recreational vehicles
for sale to the highest bidder where buyers are licensed motor vehicle dealers. Such person shall
not sell a vehicle to anyone other than a licensed motor vehicle dealer.
5. "Salvage motor vehicle dealer" means any person who engages in the business of acquiring
salvaged or wrecked motor vehicles for the purpose of reselling them and their parts.

The term "motor vehicle dealer" does not include persons not engaged in the purchase or sale of
motor vehicles as a business who are disposing of vehicles acquired for their own use or for use
in their business or acquired by foreclosure or by operation of law, provided such vehicles are
acquired and sold in good faith and not for the purpose of avoiding the provisions of this law;
persons engaged in the business of manufacturing, selling, or offering or displaying for sale at
wholesale or retail no more than 25 trailers in a 12-month period; public officers while
performing their official duties; receivers; trustees, administrators, executors, guardians, or
other persons appointed by, or acting under the judgment or order of, any court; banks, finance
companies, or other loan agencies that acquire motor vehicles as an incident to their regular
business; motor vehicle brokers; and motor vehicle rental and leasing companies that sell motor
vehicles to motor vehicle dealers licensed under this section. Vehicles owned under
circumstances described in this paragraph may be disposed of at retail, wholesale, or auction,
unless otherwise restricted. A manufacturer of fire trucks, ambulances, or school buses may sell
such vehicles directly to governmental agencies or to persons who contract to perform or
provide firefighting, ambulance, or school transportation services exclusively to governmental
agencies without processing such sales through dealers if such fire trucks, ambulances, school
buses, or similar vehicles are not presently available through motor vehicle dealers licensed by
the department.
(d) "Motor vehicle broker" means any person engaged in the business of offering to procure or
procuring motor vehicles for the general public, or who holds himself or herself out through
solicitation, advertisement, or otherwise as one who offers to procure or procures motor vehicles
for the general public, and who does not store, display, or take ownership of any vehicles for the
purpose of selling such vehicles.
(e) "Person" means any natural person, firm, partnership, association, or corporation.
(f) "Bona fide employee" means a person who is employed by a licensed motor vehicle dealer
and receives annually an Internal Revenue Service Form W-2, or an independent contractor who
has a written contract with a licensed motor vehicle dealer and receives annually an Internal
Revenue Service Form 1099, for the purpose of acting in the capacity of or conducting motor
vehicle sales transactions as a motor vehicle dealer.
(2) LICENSE REQUIRED --No person shall engage in business as, serve in the capacity of, or act
as a motor vehicle dealer in this state without first obtaining a license therefor in the appropriate
classification as provided in this section. With the exception of transactions with motor vehicle
auctions, no person other than a licensed motor vehicle dealer may advertise for sale any motor
vehicle belonging to another party unless as a direct result of a bona fide legal proceeding, court
order, settlement of an estate, or by operation of law. However, owners of motor vehicles titled in
their names may advertise and offer vehicles for sale on their own behalf. It shall be unlawful for
a licensed motor vehicle dealer to allow any person other than a bona fide employee to use the
motor vehicle dealer license for the purpose of acting in the capacity of or

45
conducting motor vehicle sales transactions as a motor vehicle dealer. Any person selling or
offering a motor vehicle for sale in violation of the licensing requirements of this subsection, or
who misrepresents to any person its relationship with any manufacturer, importer, or distributor,
in addition to the penalties provided herein, shall be deemed guilty of an unfair and deceptive
trade practice as defined in part II of chapter 501 and shall be subject to the provisions of
subsections (8) and (9).
(3) APPLICATION AND FEE.--The application for the license shall be in such form as may be
prescribed by the department and shall be subject to such rules with respect thereto as may be so
prescribed by it. Such application shall be verified by oath or affirmation and shall contain a full
statement of the name and birth date of the person or persons applying therefor; the name of the
firm or copartnership, with the names and places of residence of all members thereof, if such
applicant is a firm or copartnership; the names and places of residence of the principal officers, if
the applicant is a body corporate or other artificial body; the name of the state under whose laws
the corporation is organized; the present and former place or places of residence of the applicant;
and prior business in which the applicant has been engaged and the location thereof. Such
application shall describe the exact location of the place of business and shall state whether the
place of business is owned by the applicant and when acquired, or, if leased, a true copy of the
lease shall be attached to the application. The applicant shall certify that the location provides an
adequately equipped office and is not a residence; that the location affords sufficient unoccupied
space upon and within which adequately to store all motor vehicles offered and displayed for sale;
and that the location is a suitable place where the applicant can in good faith carry on such
business and keep and maintain books, records, and files necessary to conduct such business,
which will be available at all reasonable hours to inspection by the department or any of its
inspectors or other employees. The applicant shall certify that the business of a motor vehicle
dealer is the principal business which shall be conducted at that location. Such application shall
contain a statement that the applicant is either franchised by a manufacturer of motor vehicles, in
which case the name of each motor vehicle that the applicant is franchised to sell shall be
included, or an independent (nonfranchised) motor vehicle dealer. Such application shall contain
such other relevant information as may be required by the department, including evidence that the
applicant is insured under a garage liability insurance policy or a general liability insurance policy
coupled with a business automobile policy, which shall include, at a minimum, $25,000 combined
single-limit liability coverage including bodily injury and property damage protection and $10,000
personal injury protection. Franchise dealers must submit a garage liability insurance policy, and
all other dealers must submit a garage liability insurance policy or a general liability insurance
policy coupled with a business automobile policy. Such policy shall be for the license period, and
evidence of a new or continued policy shall be delivered to the department at the beginning of
each license period. Upon making initial application, the applicant shall pay to the department a
fee of $300 in addition to any other fees now required by law; upon making a subsequent renewal
application, the applicant shall pay to the department a fee of $75 in addition to any other fees
now required by law. Upon making an application for a change of location, the person shall pay a
fee of $50 in addition to any other fees now required by law. The department shall, in the case of
every application for initial licensure, verify whether certain facts set forth in the application are
true. Each applicant, general partner in the case of a partnership, or corporate officer and director
in the case of a corporate applicant, must file a set of electronic fingerprints with the department
for the purpose of determining any prior criminal record or any outstanding warrants. The
approved electronic fingerprint vendor shall submit electronically to the Department of Law
Enforcement for state processing and forwarding to the Federal Bureau of Investigation for

46
federal processing. The actual cost of state and federal processing shall be borne by the applicant
and is in addition to the fee for licensure. The department may issue a license to an applicant
pending the results of the fingerprint investigation, which license is fully revocable if the
department subsequently determines that any facts set forth in the application are not true or
correctly represented.
(4) LICENSE CERTIFICATE.--
(a) A license certificate shall be issued by the department in accordance with such application
when the application is regular in form and in compliance with the provisions of this section. The
license certificate may be in the form of a document or a computerized card as determined by the
department. The actual cost of each original, additional, or replacement computerized card shall
be borne by the licensee and is in addition to the fee for licensure. Such license, when so issued,
entitles the licensee to carry on and conduct the business of a motor vehicle dealer. Each license
issued to a franchise motor vehicle dealer expires annually on December 31 unless revoked or
suspended prior to that date. Each license issued to an independent or wholesale dealer or auction
expires annually on April 30 unless revoked or suspended prior to that date. Not less than 60 days
prior to the license expiration date, the department shall deliver or mail to each licensee the
necessary renewal forms. Each independent dealer shall certify that the dealer (owner, partner,
officer, or director of the licensee, or a full-time employee of the licensee that holds a responsible
management-level position) has completed 8 hours of continuing education prior to filing the
renewal forms with the department. Such certification shall be filed once every 2 years
commencing with the 2006 renewal period. The continuing education shall include at least 2 hours
of legal or legislative issues, 1 hour of department issues, and 5 hours of relevant motor vehicle
industry topics. Continuing education shall be provided by dealer schools licensed under
paragraph (b) either in a classroom setting or by correspondence. Such schools shall provide
certificates of completion to the department and the customer which shall be filed with the license
renewal form, and such schools may charge a fee for providing continuing education. Any
licensee who does not file his or her application and fees and any other requisite documents, as
required by law, with the department at least 30 days prior to the license expiration date shall
cease to engage in business as a motor vehicle dealer on the license expiration date. A renewal
filed with the department within 45 days after the expiration date shall be accompanied by a
delinquent fee of $100. Thereafter, a new application is required, accompanied by the initial
license fee. A license certificate duly issued by the department may be modified by endorsement
to show a change in the name of the licensee, provided, as shown by affidavit of the licensee, the
majority ownership interest of the licensee has not changed or the name of the person appearing as
franchisee on the sales and service agreement has not changed. Modification of a license
certificate to show any name change as herein provided shall not require initial licensure or
reissuance of dealer tags; however, any dealer obtaining a name change shall transact all
business in and be properly identified by that name. All documents relative to licensure shall
reflect the new name. In the case of a franchise dealer, the name change shall be approved by the
manufacturer, distributor, or importer. A licensee applying for a name change endorsement shall
pay a fee of $25 which fee shall apply to the change in the name of a main location and all
additional locations licensed under the provisions of subsection (5). Each initial license
application received by the department shall be accompanied by verification that, within the
preceding 6 months, the applicant, or one or more of his or her designated employees, has
attended a training and information seminar conducted by a licensed motor vehicle dealer

47
training school. Any applicant for a new franchised motor vehicle dealer license who has held a
valid franchised motor vehicle dealer license continuously for the past 2 years and who remains
in good standing with the department is exempt from the prelicensing training requirement. Such
seminar shall include, but is not limited to, statutory dealer requirements, which requirements
include required bookkeeping and recordkeeping procedures, requirements for the collection of
sales and use taxes, and such other information that in the opinion of the department will
promote good business practices. No seminar may exceed 8 hours in length.
(b) Each initial license application received by the department for licensure under subparagraph
(1)(c)2. must be accompanied by verification that, within the preceding 6 months, the applicant
(owner, partner, officer, or director of the applicant, or a full-time employee of the applicant that
holds a responsible management-level position) has successfully completed training conducted
by a licensed motor vehicle dealer training school. Such training must include training in titling
and registration of motor vehicles, laws relating to unfair and deceptive trade practices, laws
relating to financing with regard to buy-here, pay-here operations, and such other information
that in the opinion of the department will promote good business practices. Successful
completion of this training shall be determined by examination administered at the end of the
course and attendance of no less than 90 percent of the total hours required by such school. Any
applicant who had held a valid motor vehicle dealer's license within the past 2 years and who
remains in good standing with the department is exempt from the requirements of this paragraph.
The department shall have the authority to adopt any rule necessary for establishing the training
curriculum; length of training, which shall not exceed 8 hours for required department topics and
shall not exceed an additional 24 hours for topics related to other regulatory agencies' instructor
qualifications; and any other requirements under this section. The curriculum for other subjects
shall be approved by any and all other regulatory agencies having jurisdiction over specific
subject matters; however, the overall administration of the licensing of these dealer schools and
their instructors shall remain with the department. Such schools are authorized to charge a fee.
This privatized method for training applicants for dealer licensing pursuant to subparagraph
(1)(c)2. is a pilot program that shall be evaluated by the department after it has been in operation
for a period of 2 years.
(5) SUPPLEMENTAL LICENSE.--Any person licensed hereunder shall obtain a supplemental
license for each permanent additional place or places of business not contiguous to the premises
for which the original license is issued, on a form to be furnished by the department, and upon
payment of a fee of $50 for each such additional location. Upon making renewal applications for
such supplemental licenses, such applicant shall pay $50 for each additional location. A
supplemental license authorizing off-premises sales shall be issued, at no charge to the dealer, for
a period not to exceed 10 consecutive calendar days. To obtain such a temporary supplemental
license for off-premises sales, the applicant must be a licensed dealer; must notify the applicable
local department office of the specific dates and location for which such license is requested,
display a sign at the licensed location clearly identifying the dealer, and provide staff to work at
the temporary location for the duration of the off-premises sale; must meet any local government
permitting requirements; and must have permission of the property owner to sell at that location.
In the case of an off-premises sale by a motor vehicle dealer licensed under subparagraph (1)(c)1.
for the sale of new motor vehicles, the applicant must also include documentation notifying the
applicable licensee licensed under s. 320.61 of the intent to engage in an off-premises sale 5
working days prior to the date of the off-premises sale. The licensee shall either approve or
disapprove of the off-premises sale within 2 working days after receiving notice;

48
otherwise, it will be deemed approved. This section does not apply to a nonselling motor vehicle
show or public display of new motor vehicles.
(6) RECORDS TO BE KEPT BY LICENSEE.--Every licensee shall keep a book or record in
such form as shall be prescribed or approved by the department for a period of 5 years, in which
the licensee shall keep a record of the purchase, sale, or exchange, or receipt for the purpose of
sale, of any motor vehicle, the date upon which any temporary tag was issued, the date of title
transfer, and a description of such motor vehicle together with the name and address of the seller,
the purchaser, and the alleged owner or other person from whom such motor vehicle was
purchased or received or to whom it was sold or delivered, as the case may be. Such description
shall include the identification or engine number, maker's number, if any, chassis number, if any,
and such other numbers or identification marks as may be thereon and shall also include a
statement that a number has been obliterated, defaced, or changed, if such is the fact.
(7) CERTIFICATE OF TITLE REQUIRED --For each used motor vehicle in the possession of
a licensee and offered for sale by him or her, the licensee either shall have in his or her
possession or control a duly assigned certificate of title from the owner in accordance with the
provisions of chapter 319, from the time when the motor vehicle is delivered to the licensee and
offered for sale by him or her until it has been disposed of by the licensee, or shall have
reasonable indicia of ownership or right of possession, or shall have made proper application for
a certificate of title or duplicate certificate of title in accordance with the provisions of chapter
319. A motor vehicle dealer may not sell or offer for sale a vehicle in his or her possession unless
the dealer satisfies the requirements of this subsection. Reasonable indicia of ownership shall
include a duly assigned certificate of title; in the case of a new motor vehicle, a manufacturer's
certificate of origin issued to or reassigned to the dealer; a consignment contract between the
owner and the dealer along with a secure power of attorney from the owner to the dealer
authorizing the dealer to apply for a duplicate certificate of title and assign the title on behalf of
the owner; a court order awarding title to the vehicle to the dealer; a salvage certificate of title; a
photocopy of a duly assigned certificate of title being held by a financial institution as collateral
for a business loan of money to the dealer ("floor plan"); a copy of a canceled check or other
documentation evidencing that an outstanding lien on a vehicle taken in trade by a licensed
dealer has been satisfied and that the certificate of title will be, but has not yet been, received by
the dealer; a vehicle purchase order or installment contract for a specific vehicle identifying that
vehicle as a trade-in on a replacement vehicle; or a duly executed odometer disclosure statement
as required by Title IV of the Motor Vehicle Information and Cost Savings Act of 1972 (Pub. L.
No. 92-513, as amended by Pub. L. No. 94-364 and Pub. L. No. 100-561) and by 49 C.F.R. part
580 bearing the signatures of the titled owners of a traded-in vehicle.
(8) PENALTY.--Any person found guilty of violating any of the provisions of this section
is guilty of a misdemeanor of the second degree, punishable as provided in s. 775.082 or s.
775.083.
(9) DENIAL, SUSPENSION, OR REVOCATION.--
(a) The department may deny, suspend, or revoke any license issued hereunder or under the
provisions of s. 320.77 or s. 320.771, upon proof that a licensee has committed any of the
following activities:
1. Commission of fraud or willful misrepresentation in application for or in obtaining a license.
2. Conviction of a felony.
3. Failure to honor a bank draft or check given to a motor vehicle dealer for the purchase of a
motor vehicle by another motor vehicle dealer within 10 days after notification that the bank
draft or check has been dishonored. If the transaction is disputed, the maker of the bank draft or

49
check shall post a bond in accordance with the provisions of s. 559.917, and no proceeding for
revocation or suspension shall be commenced until the dispute is resolved.
(b) The department may deny, suspend, or revoke any license issued hereunder or under the
provisions of s. 320.77 or s. 320.771 upon proof that a licensee has committed, with sufficient
frequency so as to establish a pattern of wrongdoing on the part of a licensee, violations of one or
more of the following activities:
1. Representation that a demonstrator is a new motor vehicle, or the attempt to sell or the sale
of a demonstrator as a new motor vehicle without written notice to the purchaser that the vehicle
is a demonstrator. For the purposes of this section, a "demonstrator," a "new motor vehicle," and
a "used motor vehicle" shall be defined as under s. 320.60.
2. Unjustifiable refusal to comply with a licensee's responsibility under the terms of the new
motor vehicle warranty issued by its respective manufacturer, distributor, or importer.
However, if such refusal is at the direction of the manufacturer, distributor, or importer, such
refusal shall not be a ground under this section.
3. Misrepresentation or false, deceptive, or misleading statements with regard to the sale or
financing of motor vehicles which any motor vehicle dealer has, or causes to have, advertised,
printed, displayed, published, distributed, broadcast, televised, or made in any manner with
regard to the sale or financing of motor vehicles.
4. Failure by any motor vehicle dealer to provide a customer or purchaser with an odometer
disclosure statement and a copy of any bona fide written, executed sales contract or agreement of
purchase connected with the purchase of the motor vehicle purchased by the customer or
purchaser.
5. Failure of any motor vehicle dealer to comply with the terms of any bona fide
written, executed agreement, pursuant to the sale of a motor vehicle.
6. Failure to apply for transfer of a title as prescribed in s. 319.23(6).
7. Use of the dealer license identification number by any person other than the licensed dealer
or his or her designee.
8. Failure to continually meet the requirements of the licensure law.
9. Representation to a customer or any advertisement to the public representing or suggesting
that a motor vehicle is a new motor vehicle if such vehicle lawfully cannot be titled in the name
of the customer or other member of the public by the seller using a manufacturer's statement of
origin as permitted in s. 319.23(1).
10. Requirement by any motor vehicle dealer that a customer or purchaser accept equipment
on his or her motor vehicle which was not ordered by the customer or purchaser.
11. Requirement by any motor vehicle dealer that any customer or purchaser finance a
motor vehicle with a specific financial institution or company.
12. Requirement by any motor vehicle dealer that the purchaser of a motor vehicle contract
with the dealer for physical damage insurance.
13. Perpetration of a fraud upon any person as a result of dealing in motor vehicles,
including, without limitation, the misrepresentation to any person by the licensee of the
licensee's relationship to any manufacturer, importer, or distributor.
14. Violation of any of the provisions of s. 319.35 by any motor vehicle dealer.
15. Sale by a motor vehicle dealer of a vehicle offered in trade by a customer prior to
consummation of the sale, exchange, or transfer of a newly acquired vehicle to the customer,
unless the customer provides written authorization for the sale of the trade-in vehicle prior to
delivery of the newly acquired vehicle.
16. Willful failure to comply with any administrative rule adopted by the department or
the provisions of s. 320.131(8).

50
17. Violation of chapter 319, this chapter, or ss. 559.901-559.9221, which has to do with dealing
in or repairing motor vehicles or mobile homes. Additionally, in the case of used motor vehicles,
the willful violation of the federal law and rule in 15 U.S.C. s. 2304, 16 C.F.R. part 455,
pertaining to the consumer sales window form.
18. Failure to maintain evidence of notification to the owner or coowner of a vehicle
regarding registration or titling fees owed as required in s. 320.02(16).
19. Failure to register a mobile home salesperson with the department as required by
this section.
(c) When a motor vehicle dealer is convicted of a crime which results in his or her being
prohibited from continuing in that capacity, the dealer may not continue in any capacity within
the industry. The offender shall have no financial interest, management, sales, or other role in the
operation of a dealership. Further, the offender may not derive income from the dealership
beyond reasonable compensation for the sale of his or her ownership interest in the business. (10)
SURETY BOND OR IRREVOCABLE LETTER OF CREDIT REQUIRED.--
(a) Annually, before any license shall be issued to a motor vehicle dealer, the applicant-dealer of
new or used motor vehicles shall deliver to the department a good and sufficient surety bond or
irrevocable letter of credit, executed by the applicant-dealer as principal, in the sum of $25,000.
(b) Surety bonds and irrevocable letters of credit shall be in a form to be approved by the
department and shall be conditioned that the motor vehicle dealer shall comply with the
conditions of any written contract made by such dealer in connection with the sale or exchange
of any motor vehicle and shall not violate any of the provisions of chapter 319 and this chapter in
the conduct of the business for which the dealer is licensed. Such bonds and letters of credit shall
be to the department and in favor of any person in a retail or wholesale transaction who shall
suffer any loss as a result of any violation of the conditions hereinabove contained. When the
department determines that a person has incurred a loss as a result of a violation of chapter 319
or this chapter, it shall notify the person in writing of the existence of the bond or letter of credit.
Such bonds and letters of credit shall be for the license period, and a new bond or letter of credit
or a proper continuation certificate shall be delivered to the department at the beginning of each
license period. However, the aggregate liability of the surety in any one year shall in no event
exceed the sum of the bond or, in the case of a letter of credit; the aggregate liability of the
issuing bank shall not exceed the sum of the credit.
(c) Surety bonds shall be executed by a surety company authorized to do business in the state
as surety, and irrevocable letters of credit shall be issued by a bank authorized to do business in
the state as a bank.
(d) Irrevocable letters of credit shall be engaged by a bank as an agreement to honor
demands for payment as specified in this section.
(e) The department shall, upon denial, suspension, or revocation of any license, notify the
surety company of the licensee, or bank issuing an irrevocable letter of credit for the licensee, in
writing, that the license has been denied, suspended, or revoked and shall state the reason for
such denial, suspension, or revocation.
(f) Any surety company which pays any claim against the bond of any licensee or any bank
which honors a demand for payment as a condition specified in a letter of credit of a licensee
shall notify the department in writing that such action has been taken and shall state the
amount of the claim or payment.

51
(g) Any surety company which cancels the bond of any licensee or any bank which cancels an
irrevocable letter of credit shall notify the department in writing of such cancellation, giving
reason for the cancellation.
(11) INJUNCTION.--In addition to the remedies provided in this chapter and notwithstanding
the existence of any adequate remedy at law, the department is authorized to make application to
any circuit court of the state, and such circuit court shall have jurisdiction, upon a hearing and for
cause shown, to grant a temporary or permanent injunction, or both, restraining any person from
acting as a motor vehicle dealer under the terms of this section without being properly licensed
hereunder, from violating or continuing to violate any of the provisions of chapter 319, this
chapter, or ss. 559.901-559.9221, or for failing or refusing to comply with the requirements of
chapter 319, this chapter, or ss. 559.901-559.9221, or any rule or regulation adopted thereunder,
such injunction to be issued without bond. A single act in violation of the provisions of chapter
319, this chapter, or chapter 559 shall be sufficient to authorize the issuance of an injunction.
(12) CIVIL FINES; PROCEDURE.--In addition to the exercise of other powers provided in
this section, the department may levy and collect a civil fine, in an amount not to exceed $1,000
for each violation, against any licensee if it finds that the licensee has violated any provision of
this section or has violated any other law of this state or the federal law and administrative rule
set forth in paragraph (9)(a) related to dealing in motor vehicles. Any licensee shall be entitled
to a hearing pursuant to chapter 120 if the licensee contests the fine levied, or about to be levied,
upon him or her.
(13) DEPOSIT AND USE OF FEES.--The fees charged applicants for both the required
background investigation and the computerized card as provided in this section shall be
deposited into the Highway Safety Operating Trust Fund and shall be used to cover the cost of
such service.
(14) EXEMPTION.--The provisions of this section do not apply to persons who sell or
deliver motorized disability access vehicles as defined in s. 320.01.
History.--s. 11, ch. 9157, 1923; CGL 1060, 7452; ss. 1, 2, ch. 23660, 1947; ss. 10, 11, ch.
28186, 1953; s. 1, ch. 57-404; s. 1, ch. 59-238; ss. 1, 2, ch. 63-349; s. 6, ch. 65-190; s. 1, ch.
65-235; s. 1, ch. 67-93; ss. 24, 35, ch. 69-106; s. 1, ch. 70-424; s. 1, ch. 70-439; s. 200, ch. 71-
136; s. 94, ch. 71-377; s. 1, ch. 75-203; s. 3, ch. 76-168; s. 21, ch. 77-357; s. 1, ch. 77457; s.
20, ch. 78-95; s. 2, ch. 78-183; ss. 2, 15, 17, ch. 80-217; ss. 2, 3, ch. 81-318; s. 3, ch. 82-129; s.
24, ch. 82-134; s. 16, ch. 83-218; s. 7, ch. 84-155; s. 4, ch. 85-176; ss. 8, 9, ch. 86-185; s. 22,
ch. 86-243; s. 14, ch. 87-161; ss. 2, 20, 21, ch. 88-395; s. 9, ch. 89-333; s. 3, ch. 90-163; s. 246,
ch. 91-224; s. 4, ch. 91-429; s. 68, ch. 93-120; s. 16, ch. 93-219; s. 64, ch. 94-306; s. 916, ch.
95-148; ss. 18, 24, 65, ch. 95-333; s. 43, ch. 96-413; s. 52, ch. 97-100; s. 35, ch. 99-248; ss. 30,
31, ch. 2000-313; s. 69, ch. 2001-61; ss. 31, 40, ch. 2001-196; s. 44, ch. 2002-1; s. 14, ch.
2002-235; ss. 15, 66, ch. 2005-164; 2001-61;s. 32, ch. 2006-1; s. 1, ch.
2006-183; s. 35, ch. 2006-290; s. 24, ch. 2008-176.

52
 STATE OF FLORIDA
DL-15
DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES
DIVISION OF MOTORIST SERVICES
NEIL KIRKMAN BUILDING – TALLAHASSEE, FLORIDA 32399Ͳ0500 OFFICE USE ONLY
APPLICATION FOR A LICENSE AS A MOTOR VEHICLE, Entered by:

MOBILE HOME, OR RECREATIONAL VEHICLE DEALER Approved by:

LICENSE NUMBER
Do not use white out or correction tape on this application.
I hereby make application and submit the required documentation for an original license or a corporate officer update: ISSUE DATE
VF Franchised Motor Vehicle Dealer – 320.27, F.S. NI, NH, NR NonͲResident Dealer
SF Franchised Motor Vehicle Service Facility – 320.642(6), F.S.
Ͳ 320.71, F.S. DATE RECEIVED IN
VI Independent Motor Vehicle Dealer – 320.27, F.S.
Original REGIONAL OFFICE
VW Wholesale Motor Vehicle Dealer – 320.27, F.S.
VA Motor Vehicle Auction – 320.27, F.S. Dealer Development Franchise
SD Salvage Vehicle Dealer – 320.27, F.S. (Attach copy of the Dealer DATE COMPLETED IN
REGIONAL OFFICE
BH Used Mobile Home Broker – 320.77, F.S. Development & Management
DH Mobile Home DealerͲ 320.77, F.S. Agreement.)
DH/BH Selling New Recreational Vehicles – 320.771(8), F.S.
Corporate Officer Update DATE MAILED TO
DH/BH Selling Used Recreational Vehicles – 320.771(8), F.S. Modification Only (Please complete HEADQUARTERS
RV New Recreational Vehicle Dealer – 320.771, F.S. the application in its entirety. Page
RU Used Recreational Vehicle Dealer – 320.771, F.S. 5 of this application must be
completed for all incoming new DATE RECEIVED IN
Current License No.: officers. DEALER LICENSE
FEID Number: Sales Tax Number: SECTION

Proof of Identification/DL, if Sole Proprietor or Partnership: AMOUNT

Please see instruction guide for acceptable proof of identification.

Owner/Partner/LLC/LLP/LLLP or Corporation Name: CHECK

Fictitious Business Name (d/b/a): CHECK NUMBER

CASH
Dealership Physical Address:
Street Address (Enter Physical Address even if same as Mailing Address)
CREDIT CARD
City County State Zip Code
PAYMENT NUMBER
Mailing Address:
Street Address

City County State Zip Code

FRVIS CUSTOMER
Telephone Numbers: Home: ( ) Cell No.: ( ) NUMBER
Office: ( ) FAX No.: ( ) None
DIVISION CORP
Business Email Address:
1. If franchised or a recreational vehicle dealer, list authorized line make(s) for which you are ACTIVE
already licensed to sell: INACTIVE
DEALER TRAINING
SCHOOL
Motorcycles greater than 50cc Motorcycles 50cc or less TriͲVehicles COMPLETION DATE

Low Speed Vehicles MiniͲTrucks

2. If applying for an original franchised license or a recreational vehicle dealer license, list the line
make(s) your are seeking for approval:
Zone #:
Motorcycles greater than 50cc Motorcycles 50cc or less TriͲVehicles
Insp #:

Low Speed Vehicles MiniͲ53

5T3rucks
HSMV 86056 (Rev. 0൱/1൪)
 APPLICATION FOR A LICENSE AS A MOTOR VEHICLE, MOBILE HOME, OR RECREATIONAL VEHICLE DEALER
Do not use white out or correction tape on this application.
3. Sole Proprietor Corporation Limited Liability Company/Partnership (LLC/LLP)
Limited Liability/Limited Partnership (LLLP) Partnership
A. OWNERS/PARTNERS:
Last Name First Name Middle Initial (FRVIS Customer No. – Office Use Only)

Date of Birth FL DL/ID# (if other proof of ID is used, attach copy) Home Phone Number w/ Area Code Daytime Phone Number w/ Area

Residence Address City State Zip Code

Last Name First Name Middle Initial (FRVIS Customer No. – Office Use Only)

Date of Birth FL DL/ID# (if other proof of ID is used, attach copy) Home Phone Number w/ Area Code Daytime Phone Number w/ Area Code

Residence Address City State Zip Code

Last Name First Name Middle Initial (FRVIS Customer No. – Office Use Only)

Date of Birth FL DL/ID# (if other proof of ID is used, attach copy) Home Phone Number w/ Area Code Daytime Phone Number w/ Area Code

Residence Address City State Zip Code

B. CORPORATE/LLC/LP/LLP/LLLP:
Corporate Name

Corporate Headquarters Business Address City State Zip Code

PRESIDENT/MGR/MEMBER/PARTNER:
Last Name First Name Middle Initial (FRVIS Customer No. – Office Use

Date of Birth FL DL/ID# (if other proof of ID is used, attach copy) Home Phone Number w/ Area Code Daytime Phone Number w/ Area Code

Residence Address City State Zip Code

VICE PRESIDENT/MGR/MEMBER/PARTNER:
Last Name First Name Middle Initial (FRVIS Customer No. – Office Use

Date of Birth FL DL/ID# (if other proof of ID is used, attach copy) Home Phone Number Daytime Phone Number w/ Area Code

Residence Address City State Zip Code

SECRETARY/MGR/MEMBER/PARTNER:
Last Name First Name Middle Initial (FRVIS Customer No. – Office Use

Date of Birth FL DL/ID# (if other proof of ID is used, attach copy) Home Phone Number w/ Area Code Daytime Phone Number w/ Area Code

Residence Address City State Zip Code

TREASURER/MGR/MEMBER/PARTNER:
Last Name First Name Middle Initial (FRVIS Customer No. – Office Use

Date of Birth FL DL/ID# (if other proof of ID is used, attach copy) Home Phone Number w/ Area Code Daytime Phone Number w/ Area Code

Residence Address City State Zip Code

DIRECTOR/MGR/MEMBER/PARTNER:
Last Name First Name Middle Initial (FRVIS Customer No. – Office Use

Date of Birth FL DL/ID# (if other proof of ID is used, attach copy) Home Phone Number w/ Area Code Daytime Phone Number w/ Area Code

Residence Address City 54 State Zip Code

HSMV 86056 (Rev. 0൱/12)
Pleaseeuseeaeseparateesheeteifenecessary.
 APPLICATION FOR A LICENSE AS A MOTOR VEHICLE, MOBILE HOME, OR RECREATIONAL VEHICLE DEALER
4. If the place of business is owned by applicant, date of acquisition:
Enter “LEASED” in the space above, if it is a leased location. Month/Day/Year
Month/Day/Year
Please attach the following items for an original application:
• A completed application form HSMV 86056 and $300 fee for motor vehicle dealers or $340 fee for mobile home or
recreational vehicle dealers;
• Proof of identification/DL (see instruction guide for acceptable forms of identification);
• A true copy of property lease or proof of ownership;
• Proof of electronic fingerprints for each new officer from a FDLE authorized service provider. List of authorized
service providers can be accessed at:
http://flhsmv.gov/dmv/FDLEApprovedServiceProviderListForElectronicFingerprints.pdf
• Copy of dealer training course completion document;
• Original surety bond/irrevocable letter of credit (Division of Motorist Services forms only – onͲline access at
http://www.flhsmv.gov/html/forms.html);
• Copy of business and/or fictitious name registration (on Ͳli ne access at www.sunbiz.org );
• Copy of certification from the Division of Corporations showing current registration of business to conduct business
in the State of Florida (onͲline access at www.sunbiz.org );
• Corporation papers, corporate meeting minutes showing the election of corporate directors, Article of Incorporation
if the dealership is a Corporation or Incorporation; Articles of Organization and Operating Agreement if the dealership
is a Limited Liability Company; or a Partnership Agreement if the dealership is a Partnership; and
• Independent dealers (VI), Auction dealers (VA), Wholesale dealers (VW), and Salvage dealers (SD) have the option to
submit a copy of:
o A garage liability insurance certificate which shall include, at a minimum, $25,000 combined singleͲlimit
liability coverage including bodily injury and property damage protection and $10,000 personal injury
protection; OR
o A general liability insurance policy coupled with a business automobile policy, which shall included, at a
minimum, $25,000 combined single Ͳli mit liability coverage including bodily injury and property damage
protection and $10,000 personal injury.
• Franchise dealers (VF), Recreational dealers (RV & RU), and Mobile Home dealers/brokers (DH/BH) selling
recreational vehicles must submit a garage liability insurance certificate which shall include, at a minimum, $25,000
combined singleͲlimit liability coverage including bodily injury and property damage protection and $10,000
personal injury protection.
Please attach the following items for a corporate update:
• A complete application form HSMV 86056;
• Minutes of the meeting;
• Proof of electronic fingerprints from a FDLE authorized service provider. List of authorized service providers can be
accessed at http://flhsmv.gov/dmv/FDLEApprovedServiceProviderListForElectronicFingerprints.pdf
• Copy of the corporate changes registration from the Division of Corporations (on Ͳ line access at www.sunbiz.org).
For additional information, please refer to the Dealer License Instruction Booklet.
CERTIFICATIONS/STATEMENTS
Florida law requires applicants for various dealer licenses to provide certification or statements on a variety of issues.
Please carefully read, complete, sign and date applicable certifications and statements.
Required of Motor Vehicle Dealer License Applicants
I certify that my business location provides an adequately equipped office and is not a residence; that the location
affords sufficient unoccupied space upon and within which adequately store all motor vehicles offered and displayed for
sale; and that the location is a suitable place where I can in good faith carry on such business to maintain books, records,
and files necessary to conduct such business, which will be available at all reasonable hours for inspection by the
department or any of its inspectors or employees. I further certify that the business of a motor vehicle dealer is
the principal business which shall be conducted at the location.

Officer’s Signature 55
Date
HSMV 86056 (Rev. 3/12)
 APPLICATION FOR A LICENSE AS A MOTOR VEHICLE, MOBILE HOME, OR RECREATIONAL VEHICLE DEALER

Required of Mobile Home and Recreational Vehicle Dealer License Applicants:

I certify that my business location is a permanent one, not a tent or a temporary stand or other temporary
quarters; and, except in the case of a mobile home broker, that the location affords sufficient unoccupied space to store
all mobile homes and recreational vehicles offered and displayed for sale; and that the location is a suitable place in
which I can, in good faith, carry on business, maintain books, records, and files necessary to conduct such business,
which will be available at all reasonable hours for inspection by the department compliance examiners, inspectors or
other department employees. I understand that this does not preclude a licensed mobile home dealer from displaying
and offering for sale mobile homes in a mobile home park. I further certify that the business of a mobile home or
recreational vehicle dealer is the principal business which shall be conducted at the location unless I am a mobile home
park operator licensed as a mobile home dealer.

I plan to sell park models and recreational vehicles and understand the requirement to obtain Garage Liability
Insurance.

Officer’s Signature Date

If no Federal Employer’s Identification Number is obtained, the following statement is required of the applicant:

The individual owner(s) of the dealership is/are performing all duties in the business. There are no employees in the
dealership.

Officer’s Signature Date

Required of Recreational Vehicle Dealer License Applicants:

As an applicant for a recreational vehicle dealer license, issued pursuant to Section 320.771, Florida Statutes, I have not
and will not enter into any agreement, written or oral, with any other person or business entity, which would constitute
an unfair and deceptive trade practice in violation of Part II of Chapter 501, Florida Statutes.

Officer’s Signature Date

56
HSMV 86056 (Rev. 3/12)
 APPLICATION FOR A LICENSE AS A MOTOR VEHICLE, MOBILE HOME, OR RECREATIONAL VEHICLE DEALER

CERTIFICATION
(Must be completed by all dealership officers.)
5. Has this applicant, partner, corporate officer or director:
YES NO Been convicted of a felony or equivalent charge anywhere?
YES NO Been convicted of a felony or first degree misdemeanor for a violation of any provision
of Chapter 319 or 320, Florida Statutes?
YES NO Been convicted of a felony or first degree misdemeanor in any other jurisdiction for
violation of motor vehicle laws (excluding parking and traffic laws)?
YES NO Now facing criminal charges anywhere?
YES NO Been denied a surety bond?
YES NO Ever had a surety bond cancelled?
YES NO Been a licensed dealer in Florida or any other jurisdiction?
State: License #:
YES NO Been denied or had dealer license suspended or revoked in Florida or any other
jurisdiction?

(IF THE ANSWER TO ANY PART OF QUESTION #5 IS “YES”, APPLICANT IS REQUIRED TO SUPPLY APPROPRIATE
DOCUMENTATION. IN THE CASE OF A FELONY CONVICTION, CHARGING DOCUMENTS AND DISPOSITION DOCUMENTS
FROM THE COURT MUST ACCOMPANY THIS APPLICATION.)

Under penalty of perjury, I do swear and affirm that the information contained in this application is true and correct
and that applicant, if licensed, will abide by all laws of Florida, including Chapters 319 and 320, Florida Statutes, and
all applicable rules, policies, and procedures of the Department of Highway Safety and Motor Vehicles.

I further certify that I am authorized to bind the application with my signature.

I understand that I must meet all zoning requirements and occupational license requirements that may be mandated
by local or county ordinances.

Signature Typed Name/Title Date

NOTARIAL CERTIFICATE
STATE OF FLORIDA
COUNTY OF

The attached instrument was acknowledged before me on this date, / _/ by Mr./Mrs./Ms.

_who is personally known to me or who has produced
_as identification and who did take an oath.
(seal)

(Signature of Notary)
(Name of Notary, typed, printed or stamped)
(Notary)

(Title)
(Commission Serial Number)
Important:
This certification is required for each officer of the dealership. If necessary, please make copies of this page. After
completing this certification for each officer, attach each copy to this application. Each certification must be
notarized.
57
HSMV 86056 (Rev. 3/12)
 APPLICATION FOR A LICENSE AS A MOTOR VEHICLE, MOBILE HOME, OR RECREATIONAL VEHICLE DEALER

FOR DEPARTMENT USE ONLY

Site Inspection No.:

YES NO I have inspected the location of the above described applicant and find it qualifies for a license
under Section 320.27, 320.77, or 320.771, Florida Statutes, as applicable. (If NO, a signed,
detailed investigation report with diagram of location must be attached.)

YES NO After careful review of the application (including attachments) and based on the information
available to me at this time, I recommend that a license be issued. (If NO, a signed, detailed,
and documented investigative report must be attached.)

Signature of Compliance Examiner Zone No.

Signature of Reviewing Authority

DEALER LICENSE SECTION

Application Examined By:

Initials Date

Application Approved By:

Initials Date

58
HSMV 86056 (Rev. 3/12)
 STATE OF FLORIDA DL-16
DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES
DIVISION OF MOTORIST SERVICES
NEIL KIRKMAN BUILDING, TALLAHASSEE, FLORIDA 32399-0500
OFFICE USE ONLY
RENEWAL APPLICATION Entered by

MOTOR VEHICLE, MOBILE HOME, OR RECREATIONAL VEHICLE DEALERS Approved by

LICENSE NUMBER
IF THERE ARE NO CHANGES FROM LAST YEAR, YOU MAY FILE THIS FORM TO RENEW YOUR
LICENSE. THIS FORM MAY ALSO BE USED FOR THE FOLLOWING: ISSUE DATE
Change of Mailing Address (Please Check Box if Mailing Address Needs Updating)
Do not use white out or correction tape on this application. DATE APPLICATION
Current or last License Number (Include suffix if Additional Location): _____________________ WAS RECEIVED IN
Licensee Name: ________________________________________________________________ REGIONAL OFFICE
Sole Proprietor Corporation Limited Liability Company/Partnership (LLC/LLP)
Limited Liability Limited Partnership (LLLP) Partnership
DATE MAILED TO
Fictitious (DBA) Name: HEADQUARTERS

Dealership Physical Address: DATE RECEIVED IN

Street Address
DEALER LICENSE
City County State Zip Code OFFICE
Mailing Address:
Enter Mailing Address Even if Same as Physical Address
Dealer Application
City County State Zip Code
Federal Employer’s Identification Number (FEID): Completion Date

Florida Sales Tax Number:

Business E-Mail Address: CHECK
Business Telephone Number: ( ) Fax Number: ( )
CHECK NUMBER
Cell Phone Number: ( )
Proof of Identification, if Sole Proprietor or Partnership:
AMOUNT
Who is your ETR vendor?
Acceptable Proof of Identification includes:
• A Florida driver license or identification card (please include number in appropriate space above); CASH
• An out of state driver license or identification card;
• A US passport; CREDIT CARD
• A Canadian driver license, identification card, or passport; PAYMENT NUMBER
• A driver license or identification card from any US Territory (American Samoa, Guam, Mariana,
Puerto Rico, and the US Virgin Islands); and
FRVIS CUSTOMER
• An out of country passport.
NUMBER
A copy of the proof of identification must be submitted with your renewal form to the Department, unless the
proof of identification submitted is a Florida driver license or identification card (please include driver DIVISION CORP
license/identification number in appropriate space above). ACTIVE
INACTIVE
COMPLETION OF THIS SECTION IS MANDATORY FOR PROCESSING:
Have you or any officer/owner been convicted of a felony or equivalent in any jurisdiction since your last Dealer Training School
renewal? Yes No Continuing
Education
If the answer is “Yes”, please submit the charging document(s) and disposition document(s). Pre-Licensing
“Under penalty of perjury, I do swear to affirm that all the information contained in this application is true and DATE: _________
correct and that applicant will abide by all laws of Florida, including Chapters 319 and 320, Florida Statutes, SURETY BOND/
and all applicable rules, and procedures of the Department of Highway Safety and Motor Vehicles. I further CONTINUATION CERT.

certify that I am authorized to bind the application with my signature.”

GARAGE LIABILITY
INSURANCE
Officer’s Signature Print Name Zone#
Insp #
Title Date
59 Insp Name:
HSMV 86720 (Rev. 6/11)
 REQUIRED DOCUMENTATION - (must be submitted with renewal application)

FRANCHISE (VF) MOTOR VEHICLE DEALERS are required to submit the following
documentation with their renewal application:

Primary Location:

• Completed license renewal application form HSMV 86720.

• $75 renewal fee for the primary location. If the completed application, all required
documents, and fee are not received for the primary location by December 31st, a $100
delinquent fee is due for a total renewal fee of $175.
Checks must be made payable to DHSMV.
• An original surety bond, original irrevocable letter of credit, or original continuation
certificate in the amount of $25,000 for franchise motor vehicle dealers. The Dealership's
Principal must sign the surety bond and Irrevocable Letter of Credit.
• Proof of Garage Liability insurance which must include at a minimum, $25,000
combined single limited liability coverage including bodily injury and property damage
protection and $10,000 personal injury protection. Certificate of garage liability
insurance signed by the garage liability insurance agent is required.
• Copy of certification from the Division of Corporations showing current registration of
the business and fictitious name(s) (on-line access at www.sunbiz.org).

Supplemental Location

• A completed license renewal application form HSMV 86720.

• $50 renewal fee. Make check payable to DHSMV.
• A copy of the surety bond, irrevocable letter of credit, or continuation certificate in the
amount of $25,000 that was submitted with the primary location renewal application.
• A copy of the certificate of garage liability insurance that was submitted with the primary
location renewal application. This certification must include at a minimum, $25,000
combined single limit liability coverage including bodily injury and property damage
protection and 10,000 personal injury protection. Copy of the Certificate of garage liability
insurance is required and must be signed by the garage liability insurance agent

INDEPENDENT (VI), WHOLESALE (VW), AUCTION (VA), AND SALVAGE (SD)

MOTOR VEHICLE DEALERS are required to submit the following documentation with
their renewal application:

Primary Location:
• Completed license renewal application form HSMV 86720.
• $75 renewal fee for the primary location. If the completed application, all required
documents, and fee are not received for the primary location by April 30th, a $100
delinquent fee is due for a total renewal fee of $175. Checks must be made payable to
DHSMV.
• An original surety bond, original irrevocable letter of credit, or original continuation
certificate in the amount of $25,000 for motor vehicle dealers, auction dealers and
independent dealers. The Dealership's Principal must sign the surety bond and
Irrevocable Letter of Credit.
• Proof of Garage Liability insurance which must include at a minimum, $25,000
combined single limit liability coverage including bodily injury and property damage
protection and $10,000 personal injury protection or a general liability policy coupled
60
 with a business automobile policy which must include at a minimum, $25,000 combined
single-limit liability coverage including bodily injury and property damage protection and
$10,000 personal injury protection. Signature of the insurance agent is required on all
insurance policies.
• Dealer License Continuing Education course certificate of completion or a pre-licensing
Dealer Training Seminar for independent dealers only.
• Copy of certification from the Division of Corporations showing current registration of
the business and fictitious name(s) (on-line access at www.sunbiz.org).

Supplemental Location:

• Completed license renewal application form HSMV 86720 including current business e-
mail address.
• $50 renewal fee.
• A copy of the surety bond, irrevocable letter of credit, or continuation certificate that was
filed with the renewal of the primary lot.
• A copy of the certificate of garage liability insurance or a general liability insurance policy
coupled with business automobile policy that was submitted with the primary location
renewal application. This certification must include at a minimum, $25,000 combined
single limit liability coverage including bodily injury and property damage protection and
$10,000 personal injury protection. Copy of the certificate of garage liability insurance or
general liability insurance is required and must be signed by the insurance agent.

MOBILE HOME DEALERS (DH), MOBILE HOME BROKERS (BH) are required to
submit the following documentation with their renewal application:

Primary Location:

• Completed license renewal application form HSMV 86720.

• $140 renewal fee for the primary location. If the completed application, all required
documents, and fee are not received for the primary location by September 30th, a $200
delinquent fee is due for a total renewal fee of $340. Checks must be made payable to
DHSMV.
• An original surety bond, original irrevocable letter of credit, or original continuation
certificate in the amount of $25,000 must be submitted for mobile homes dealers with
four or fewer supplemental locations. The Dealership's Principal must sign the surety
bond and Irrevocable Letter of Credit.
Mobile home dealers with more than four supplemental locations must submit an
original surety bond, original irrevocable letter of credit, or original continuation
certificate in the amount of $50,000.
• Mobile home dealers and mobile home brokers selling recreational vehicles must submit
proof of garage liability insurance which must include at a minimum, $25,000 combined
single limit liability coverage including bodily injury and property damage protection and
$10,000 personal injury protection. Certificate of garage liability insurance signed by the
garage liability insurance agent is required.
• Copy of certification from the Division of Corporation showing current registration of the
business and fictitious name(s) (on-line access at www.sunbiz.org).

61
Supplemental Location:

• Completed license renewal application form HSMV 86720 including current business e-
mail address.
• $50 renewal fee.
• A copy of the surety bond, irrevocable letter of credit, or continuation certificate that was
filed with the renewal of the primary lot.

RECREATIONAL VEHICLE DEALERS (RV and RU) are required to submit the following
documentation with their renewal application:

Primary Location:

• Completed license renewal application form HSMV 86720.

• $140 renewal fee for the primary location. If the completed application, all required
documents, and fee are not received for the primary location by September 30th, a $200
delinquent fee is due for a total renewal fee of $340. Checks must be made payable to
DHSMV.
• An original surety bond or original continuation certificate in the amount of $10,000 must
be submitted for recreational vehicle dealers with four or fewer supplemental locations.
Recreational vehicle dealers with more than four supplemental locations must submit an
original surety bond or original continuation certificate in the amount of $20,000.
• Proof of Garage Liability insurance which must include at a minimum, $25,000
combined single limit liability coverage including bodily injury and property damage
protection and $10,000 personal injury protection. Certificate of garage liability insurance
signed by the garage liability insurance agent is required.
• Copy of certification from the Division of Corporations showing current registration of
the business and fictitious name(s) (on-line access at www.sunbiz.org).

Supplemental Location:

• Completed license renewal application form HSMV 86720 including current business e-
mail address.
• $50 renewal fee.
• A copy of the surety bond, irrevocable letter of credit, or continuation certificate that was
filed with the renewal of the primary lot.
• A copy of the garage liability insurance certificate that was filed with the renewal of the
primary location.

62
 DL-17

FORMS TO USE IN EACH DEAL

Sale of New Vehicle

Forms needed for a retail sale of a new vehicle (or one that is new but must be titled as
USED)
- MCO (Manufacturer's Certificate of Origin —also known as MSO)
- Motor Vehicle Dealer Title Reassignment (HSMV 82994 Rainbow Form) - if
the MCO is not available for signature at time of sale
- Application for Certificate of Title With/Without Registration (HSMV 82040)
- Bill of Sale
- Retail Installment Sales Contract - if financing
- Privacy Policy (Gramm-Leach-Bliley Privacy Protection Act)
- Copy of Credit Life/Disability Policy — if applicable
- Proof of Insurance
- Copy of Driver License
- Copy of Registration -if transferring a license plate from another vehicle
- Notification of Transfer of Registration License Plate
if transferring a license plate from another vehicle via print-on-demand vendor.
- Temporary Tag issued via print-on-demand — if there is no tag to transfer
- (HSMV 82082) to print-on-demand vendor within one business day if issuing an
pre-printed temporary tag off-line during system outage.
- Copy of Sales Tax Exemption Certificate — if selling to a government agency or
tax exempt organization
- Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in Another
State (DR-123) — if selling to a buyer who lives in another state
- Other forms applicable to your dealership

Trade-in: Forms needed when accepting a trade-in.

- Title for the trade-in vehicle, signed by the customer(s)

If the customer has lost the title:

- Application for Duplicate/Lost in Transit Title (HSMV 82101)

- Motor Vehicle Power of Attorney/Odometer Disclosure (HSMV 82995-Secure
POA)

If the title has one or more lienholders:

- Motor Vehicle Power of Attorney/Odometer Disclosure (HSMV 82995-Secure
POA)
- Lien payoff information/verification

63
 Sale of Used Vehicle

Forms needed for a retail sale of a used vehicle with a Florida title
- Florida Title or Out-of-State Title properly completed
- Power of Attorney - (secure or non-secure) if the title was with a lienholder, was
lost/destroyed, or was unavailable at time of sale
- Motor Vehicle Dealer Title Reassignment (HSMV 82994 Rainbow Form) - if all
reassignments on the back of the title document were used
- Application for Certificate of Title With/Without Registration (HSMV 82040)
- Bill of Sale
- FTC Buyers Guide
- Copy of Warranty Document, if offering one
- Copy of Service Agreement, if selling one
- Certification of Air Pollution Control Devices
- Retail Installment Sales Contract - if financing
- Privacy Policy (Gramm-Leach-Bliley Privacy Protection Act)
- Copy of Credit Life/Disability Policy - if applicable
- Proof of Insurance
- Copy of Driver License
- Copy of Registration - if transferring a license plate from another vehicle
- Notification of Transfer of Registration License Plate (HSMV 83033) - if
transferring a license plate from another vehicle
- Temporary Tag - if there is no tag to transfer
- Application for Temporary License Plate (HSMV 83091) if issuing a
temporary tag
- Copy of Sales Tax Exemption Certificate — if selling to a government agency
or tax exempt organization (e.g., religious, nonprofit, or charitable)

Trade-in: Forms needed when accepting a trade-in.

- Title for the trade-in vehicle, signed by the customer(s)

If the customer has lost the title:

- Application for Duplicate/Lost in Transit Title (HSMV 82101)

- Motor Vehicle Power of Attorney/Odometer Disclosure (HSMV 82995-Secure
POA)

If the title has one or more lienholders:

- Motor Vehicle Power of Attorney/Odometer Disclosure (HSMV 82995-Secure
POA)
- Lien payoff information/verification

64
 Sale to Out-of-State Customer

When selling to someone who lives in another state but takes delivery in Florida, you
must also complete the:
- Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in Another
State (DR-123) — if selling to a buyer who lives in another state
- Temporary tag (proof of insurance from buyer's state is acceptable)
- Other forms applicable to your dealership

Trade-in: Forms needed when accepting a trade-in.

- Title for the trade-in vehicle, signed by the customer(s)

If the customer has lost the title:

- Application for Duplicate/Lost in Transit Title (HSMV 82101) or appropriate

form from customer's state
- Motor Vehicle Power of Attorney/Odometer Disclosure (HSMV 82995-Secure
POA)

If the title has one or more lienholders:

- Motor Vehicle Power of Attorney/Odometer Disclosure (HSMV 82995-Secure
POA)
- Lien payoff information/verification

65
PRIVILEGES DL-18
320.13, F.S.

1. PURCHASE AND USE OF DEALER PLATES

a. WHO MAY USE
Licensed motor vehicle and recreational vehicle dealers are entitled to obtain such dealer
license plates as may be necessary to conduct their businesses. Mobile home dealers who
also sell recreational vehicles may obtain and use dealer plates in connection with the sale
of recreational vehicles. Wholesale dealers, salvage dealers, and those who are licensed and
deal exclusively in mobile homes are not entitled to procure or use dealer plates. Dealers
who sell motorcycles may obtain 4x6 inch motorcycle dealer plates to be displayed on
motorcycles.
b. WHEN DEALER PLATES MAY BE USED
Dealer plates may be used on vehicles which are operated in connection with a dealer’s
business; on vehicles while being used for demonstration purposes, with or without a
representative of the dealer in the vehicle; on vehicles which are in transit to or from a
dealer’s place of business; on vehicles loaned, without compensation, to a customer by a
dealer while the customer’s vehicle is being repaired by the dealer; on vehicles, such as
service trucks, used by a dealer for hauling equipment or commodities, or making service
calls, where compensation is not a consideration; and, on vehicles owned by the dealer
while in inventory and for sale.
c. WHEN DEALER PLATES MAY NOT BE USED
Dealer plates may not be used on service trucks used for hauling or making service calls for
compensation, on parts or supply trucks calling on retail or wholesale trade, or on wreckers
(s. 320.13, F.S.). A licensed wholesale motor vehicle dealer does not have the privilege of
using dealer license plates. Dealer plates are not to be used for private use by a dealer or
family member, to evade proper registration, when the vehicle is not being used for dealer
business.
d. REPLACEMENT
Dealer plates may be replaced if the originals have been destroyed, lost, or stolen, provided
that the dealer has reported such loss to a law enforcement agency prior to the issuance of
a replacement plate (visit the Department's http://www.flhsmv.gov/html/forms.html to
access form HSMV 83146, Application for Replacement License Plate, Validation Decal, or
Parking Permit). Although a use tax must be paid by a dealer for each plate obtained, the
use tax is not required on replacement dealer plates.
e. REGISTRATION PERIODS
The registration periods for dealer license plates run concurrently with the dealer license
period.
f. MISUSE/ABUSE
Misuse or abuse of dealer license plates can result in severe sanctions being taken against a
dealer’s license. The use of a dealer plate on the car of a member of a dealer’s family, when
the vehicle is truly not in inventory and for sale, but rather is being used without paying
taxes or license fees, is a violation of the motor vehicle laws, as well as the sales tax laws of
the state. A dealer plate may not be used for the purpose of testing or driving a vehicle, to
determine whether a dealer wishes to purchase that vehicle. In essence, the use of dealer
plates must be confined to those purposes specified, authorized, and described in paragraph
(b) on the previous page.

66
ISSUING TEMPORARY TAGS
320.131, F.S., 15C-1.003, 15C-1.004, F.A.C.
The Department requires that motor vehicle dealers issue all temporary tags via an
electronic system. This allows the law enforcement to verify the validity of a temporary
license plate through the Florida Real Time Vehicle Information System (FRVIS).
The license plate stock for electronic temporary registration is purchased from the ETR
vendor.

Several providers have been certified to provide this service to the motor vehicle dealers.
More information can be accessed onͲline at http://www.flhsmv.gov/etr/etr.html. The
dealers that do not desire to contract with an ETR vendor must have temporary tags issued
at the Tax Collector’s Office.

More information on temporary license plates is available at the Department’s website at

http://www.flhsmv.gov/, and under procedure RS31 that can be accessed at
http://www3.flhsmv.gov/Division of Motorist Services/Proc/RS/RSContents.html.

Memos and Dealer advisories from the Department on Electronic Transfer of Metal Plates
can be accessed at http://www.flhsmv.gov/dmv/DlrAdv/DAindex.html.

If a purchaser of a vehicle is not transferring a tag from a tradeͲin vehicle, the dealer may
issue a thirtyͲday temporary tag for use on the vehicle via their ETR vendor. Before issuing
the first temporary tag the dealer must have all necessary information, including proof of
insurance, to be able to transfer the title and register the vehicle during the thirtyͲday
period. For information on temporary tag issuance access the Dealer Advisories at the
Department’s website at http://www.flhsmv.gov/dmv/DlrAdv/DAindex.html.

Pursuant to section 320.131(l), Florida Statutes, “The Department is authorized and

empowered to design, issue, and regulate the use of temporary tags to be designated
“temporary tags” for use in the following cases:
(a) Where a dealer license plate may not be lawfully used.
(b) For a casual or private sale, including the sale of a marine boat trailer by a marine
boat trailer dealer. A “casual or private sale” means any sale other than that by a
licensed dealer.
(c) For certified common carriers or driveaway companies who transport motor vehicles,
mobile homes, or recreational vehicles from one place to another for persons other
than themselves.
(d) For banks, credit unions, and other financial institutions which are not required to be
licensed under the provisions of s. 320.27, s. 320.77, or s. 320.771, but need temporary
tags for the purpose of demonstrating repossessions for sale.
(e) Where a motor vehicle is sold in this state to a resident of another state for
registration therein and the motor vehicle is not required to be registered under the
provisions of s. 320.38.
(f) Where a motor vehicle is required to be weighed or emission tested prior to
registration or have a vehicle identification number verified. A temporary tag issued for
any of these purposes shall be valid for 10 days.
(g) Where an outͲofͲstate resident, subject to registration in this state, must secure
ownership documentation from the home state.

67
 (h) For a rental car company which possesses a motor vehicle dealer license and which
may use temporary tags on vehicles offered for lease by such company in accordance
with the provisions of rules established by the Department. However, the original
issuance date of a temporary tag shall be the date which determines the applicable
license plate fee.
(i) In the resolution of a consumer complaint where there is a need to issue more than
two temporary tags, the department may do so.
(j) While a personalized prestige or specialty license plate is being manufactured for use
upon the motor vehicle. A temporary tag issued for this purpose shall be valid for 90
days.
(k) In any case where a permanent license plate cannot legally be issued to an applicant
and a temporary license plate is not specifically authorized under the provisions of this
section, the Department shall have the discretion to issue or authorize agents or Florida
licensed dealers to issue temporary license plates to applicants demonstrating a need
for such temporary use.
(l) For use by licensed dealers to transport motor vehicles and recreational vehicles from
the dealer’s licensed location to an offͲpremise sales location and return. Temporary
tags used for such purposes shall be issued to the licensed dealer who owns the
vehicles.

The Department is authorized to disallow the purchase of temporary tags by licensed

dealers, common carriers, or financial institutions in those cases where abuse has occurred.
Procedure on temporary license plates RS 31 can be accessed at
http://www3.flhsmv.gov/dmv/Proc/RS/RSͲ31.pdf.

68
 DL-19

Section 319.23(a), Florida Statutes, provides that in the case of the sale of a motor vehicle by a licensed
motor vehicle dealer to a general purchaser who resides in another state or country, the dealer is not
required to apply for a certificate of title for the motor vehicle; however, the dealer must transfer
ownership and reassign the certificate of title or manufacturer’s certificate of origin to the purchaser,
and the purchaser must sign an affidavit, as approved by the Department, that the purchaser will title
and register the motor vehicle in another state or country. Form HSMV 84061 needs to be completed.

When the purchaser resides in another state, the dealer must provide the reassigned title of the
Manufacturer’s Certificate of Origin to the buyer within thirty (30) days of possession of the vehicle by
the buyer.

69
 STATE OF FLORIDA
DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES

DECLARATION AFFIDAVIT FOR A MOTOR VEHICLE

WHICH WILL BE TITLED AND REGISTERED IN
ANOTHER STATE OR COUNTRY

Date Purchaser(s) Signed:

I/we, do hereby attest, pursuant to section 319.23(6)(a), Florida Statutes, that I/we

purchased a motor vehicle described as a: _ ,_ ,

(Year) (Make)

, on _ , from
Vehicle Identification Number (VIN) (Date)

, and further declare that I/we will be

(Complete Name of Selling Dealer)

responsible for applying for title and registering the vehicle in another state or country.

Under penalties of perjury, I declare that I have read the foregoing document and that the
facts stated in it are true.

Purchaser’s Printed Name Purchaser’s Signature

Purchaser’s Complete Address

Co- Purchaser’s Printed Name (when applicable) Co-Purchaser’s Signature (when applicable)

Co-Purchaser’s Complete Address (when applicable)

HSMV 84061 S (08/11)

70
 State of Florida - Department of Highway Safety and Motor Vehicles
DIVISION OF MOTORIST SERVICES- Dealer Records Inspection Report DL-20
For Office Use Only
Investigator: Date: License Number:

Follow-Up? _Yes _No If yes, _30 days _60 days _90 days If follow-up, what is focus? Section 1 IIIIITVV VI _VII
Complaint Number: Graded by: Dealer's Name:
Off Premises Location: Dealer's Address:
City: Zip Code City: Zip Code
FRVIS Inspection Number: Telephone Number:

Section I: DISPLAYED FOR SALE

Dealers are required to possess a properly reassigned Certificate of Title for each used vehicle that is being offered for sa le, or have other
approved proof of ownership. A dealer is also required to have a properly completed odometer disclosure statement and a buyer's guide (As-
Is) pursuant to Florida Statutes 320.27(7), 320.27(9)(b)(4), and 320.27(9)(b)17, and Rule 15C -7, Florida Administrative Code.

Vehicle 1: Year: Make: VIN: Title State:

Odometer Reading: Disclosure Statement? Yes No Title Number:

Other Proof of Ownership/Type: Is title assigned properly? Yes No Buyer's Guide? Yes No

Vehicle 2: Year: Make: VIN: Title State:

Odometer Reading: Disclosure Statement? Yes No Title Number:

Other Proof of Ownership/Type: Is title assigned properly? Yes No Buyer's Guide? Yes No

Vehicle 3: Year: Make: VIN: Title State:

Odometer Reading: Disclosure Statement? Yes No Title Number:

Other Proof of Ownership/Type: Is title assigned properly? Yes No Buyer's Guide? Yes No
Vehicle 4: Year: Make: VIN: Title State:
Odometer Reading: Disclosure Statement? Yes No Title Number:

Other Proof of Ownership/Type: Is title assigned properly? Yes No Buyer's Guide? Yes No
Vehicle 5: Year: Make: VIN: Title State:
Odometer Reading: Disclosure Statement? Yes No Title Number:

Other Proof of Ownership/Type: Is title assigned properly? Yes No Buyer's Guide? Yes No

Vehicle 6: Year: Make: VIN: Title State:

Odometer Reading: Disclosure Statement? Yes No Title Number:

Other Proof of Ownership/Type: Is title assigned properly? Yes No Buyer's Guide? Yes No

Vehicle 7: Year: Make: VIN: Title State:

Odometer Reading: Disclosure Statement? Yes No Title Number:

Other Proof of Ownership/Type: Is title assigned properly? Yes No Buyer's Guide? Yes No

Vehicle 8: Year: Make: VIN: Title State:

Odometer Reading: Disclosure Statement? Yes No Title Number:

Other Proof of Ownership/Type: Is title assigned properly? Yes No Buyer's Guide? Yes No

Vehicle 9: Year: Make: VIN: Title State:

Odometer Reading: Disclosure Statement? Yes No Title Number:

Other Proof of Ownership/Type: Is title assigned properly? Yes No Buyer's Guide? Yes No

Vehicle 10: Year: Make: VIN: Title State:

Odometer Reading: Disclosure Statement? Yes No Title Number:

Other Proof of Ownership/Type: Is title assigned properly? Yes No Buyer's Guide? Yes No

C o mme n t s :

HSMV 84015S (Revised 07/08) 71 Page 1 of 6

S ectio n II : P U RCH A S E S AN D SA L E S
Sections 320.27(6), 320.77(8) and 320.771(9), F.S., requires the licensee to keep records of purchase and sales transactions. Section
320.27(9)(b)4, F.S., requires the licensee to provide an executed odometer disclosure statement. Section 319.23(6), F.S. requ ires the
licensee to apply for title within 30 days of the date of delivery. Section 320.131(1)(i), ES., provides that only the department may
authorize issuance of more than two temporary tags. Section 316.2935(1)(b), ES. requires the licensee to provide written cert ification
that emissions control devices are in place. Select ten (10) used retail sales and complete the following:

Vehicle 1: Year: Make: VIN: Date Acquired:

Acquired from: Proof of Purchase? Yes No Acquired Mileage:
Odometer Disclosure: Yes No Date Sold at Retail: Purchaser's Name:
Certificate of Pollution Control Devices? Yes No Sold Mileage: Odometer Disclosure: Yes No
Temporary Tag Issue Date(s): More than 2 temporary tags issued: Yes No
Date Title Applied For: Proof of Transfer? Yes No Buyer's Guide? Yes No
Estimated Title and Registration Fees: Actual Title and Registration Fees: Refund Issued? Yes No
Vehicle 2: Year: Make: VIN: Date Acquired:
Acquired from: Proof of Purchase? Yes No Acquired Mileage:
Odometer Disclosure: Yes No Date Sold at Retail: Purchaser's Name:
Certificate of Pollution Control Devices? Yes No Sold Mileage: Odometer Disclosure: Yes No
Temporary Tag Issue Date(s): More than 2 temporary tags issued: Yes No
Date Title Applied For: Proof of Transfer? Yes No Buyer's Guide? Yes No
Estimated Title and Registration Fees: Actual Title and Registration Fees: Refund Issued? Ye No
Vehicle 3: Year: Make: VIN: Date Acquired:
Acquired from: Proof of Purchase? Yes No Acquired Mileage:
Odometer Disclosure: Yes No Date Sold at Retail: Purchaser's Name:
Certificate of Pollution Control Devices? Yes No Sold Mileage: Odometer Disclosure: Yes No
Temporary Tag Issue Date(s): More than 2 temporary tags issued: Yes No

Date Title Applied For: Proof of Transfer? Yes No Buyer's Guide? Yes No
Estimated Title and Registration Fees: Actual Title and Registration Fees: Refund Issued? Yes No
Vehicle 4: Year: Make: VIN: Date Acquired:
Acquired from: Proof of Purchase? Yes No Acquired Mileage:
Odometer Disclosure: Yes No Date Sold at Retail: Purchaser's Name:
Certificate of Pollution Control Devices? Yes No Sold Mileage: Odometer Disclosure: Yes No
Temporary Tag Issue Date(s): More than 2 temporary tags issued: Yes No
Date Title Applied For: Proof of Transfer? Yes No Buyer's Guide? Yes No
Estimated Title and Registration Fees: Actual Title and Registration Fees: Refund Issued? Yes No
Vehicle 5: Year: Make: VIN: Date Acquired:
Acquired from: Proof of Purchase? Yes No Acquired Mileage:
Odometer Disclosure: Yes No Date Sold at Retail: Purchaser's Name:

Certificate of Pollution Control Devices? Yes No Sold Mileage: Odometer Disclosure: Yes No
Temporary Tag Issue Date(s): More than 2 temporary tags issued: Yes No
Date Title Applied For: Proof of Transfer? Yes No Buyer's Guide? Yes No Estimated
Title and Registration Fees: Actual Title and Registration Fees: Refund Issued? Yes No
Vehicle 6: Year: Make: VIN: Date Acquired:
Acquired from: Proof of Purchase? Yes No Acquired Mileage:
Odometer Disclosure: Yes No Date Sold at Retail: Purchaser's Name:
Certificate of Pollution Control Devices? Yes No Sold Mileage: Odometer Disclosure: Yes No
Temporary Tag Issue Date(s): More than 2 temporary tags issued: Yes No

Date Title Applied For: Proof of Transfer? Yes No Buyer's Guide? Yes No
Estimated Title and Registration Fees: Actual Title and Registration Fees: Refund Issued? Yes No
Section II - Continued on Page 3
HSMV 84015S (Revised 07/08) 72 Page 2 of 6
Section II - Continued
Vehicle 7: Year: Make: VIN: Date Acquired:
Acquired from: Proof of Purchase? Yes No Acquired Mileage:
Odometer Disclosure: Yes No Date Sold at Retail: Purchaser's Name:
Certificate of Pollution Control Dev ices? Yes No Sold Mileage: Odometer Disclosure: Yes No
Temporary Tag Issue Date(s): More than 2 temporary tags issued: Yes No
Date Title Applied For: Proof of Transfer? Yes No Buyer's Guide? Yes No
Estimated Title and Registration Fees: Actual Title and Registration Fees: Refund Issued? Yes No

Vehicle 8: Year: Make: VIN: Date Acquired:

Acquired from: Proof of Purchase? Yes No Acquired Mileage:

Odometer Disclosure: Yes No Date Sold at Retail: Purchaser's Name:

Certificate of Pollution Control Dev ices? Yes No Sold Mileage: Odometer Disclosure: Yes No
Temporary Tag Issue Date(s): More than 2 temporary tags issued: Yes No
Date Title Applied For: Proof of Transfer? Yes No Buyer's Guide? Yes No
Estimated Title and Registration Fees: Actual Title and Registration Fees: Refund Issued? Yes No

Vehicle 9: Year: Make: VIN: Date Acquired:

Acquired from: Proof of Purchase? Yes No Acquired Mileage:
Odometer Disclosure: Yes No Date Sold at Retail: Purchaser's Name:
Certificate of Pollution Control Dev ices? Yes No Sold Mileage: Odometer Disclosure: Yes No
Temporary Tag Issue Date(s): More than 2 temporary tags issued: Yes No
Date Title Applied For: Proof of Transfer? Yes No Buyer's Guide? Yes No Estimated
Title and Registration Fees: Actual Title and Registration Fees: Refund Issued? Yes No
Vehicle 10: Year: Make: VIN: Date Acquired
Acquired from: Proof of Purchase? Yes No Acquired Mileage:
Odometer Disclosure: Yes No Date Sold at Retail: Purchaser's Name:

Certificate of Pollution Control Devices? Yes No Sold Mileage: Odometer Disclosure: Yes No
Temporary Tag Issue Date(s): More than 2 temporary tags issued: Yes No
Date Title Applied For: Proof of Transfer? Yes No Buyer's Guide? Yes No Estimated
Title and Registration Fees: Actual Title and Registration Fees: Refund Issued? Yes No

Section III: TEMPORARY TAGS (Motor Vehicle, Recreational Vehicle, and Motorcycle Dealers)
Licensee is required by Section 320.27(6), F.S., to keep an accurate record of tem orary tags purchased and issued.
Pre-printed Stock: Print on Demand:
A. Date of Purchase:
A. Is a copy of the temporary license plate receipt
B. Amount Purchased: properly completed and maintained?
C. From Series # to Series # Yes No
D. County/Agency Tags Purchased From: ______________________ B. Is form HSMV 82082 properly completed and
E. Does Dealer Have Receipt for Tags? Yes No maintained? Yes No
F. Temporary Tags still on hand by Number: C. Was FRVIS updated within one business day?
Beginning # Ending # ___ Yes ____ No
G Are Temporary Tags accounted for? Yes No
Issued at Tax Collector's Office:
H. Are Temporary Tags issued in sequence? Yes No
A. Is Assignment Form HSMV 83091 properly
I. Is the Temporary tag log kept and maintained? Yes No
completed and maintained? Yes No
J Is Assignment Form HSMV 83091 properly completed and maintained?
Yes No B. Is a copy of the temporary license plate receipt
K Is form HSMV 82082 properly completed and maintained? Yes properly completed and maintained?
L Are Temporary Tags issued for 30 days? Yes No
Yes No
M. Were no more than two (2) temporary tags issued? Yes No
Comments:
N. Is Dealer License Number listed on temporary tags? Yes No
List All Temporary Tags Not Accounted For: _______________________
73
73
HSMV 84015S (Revised 07/08) Page 3 of 6
Section IV: TRADE-IN INFORMATION

Dealers are not allowed to sell a trade in vehicle before the new deal is consummated without a signed authorization the consumer
from allowing the dealer to do so per s. 320.27(9)(b)15, F.S. Dealer must pay off any lien on a traded in vehiclworking days
within the 10 period per s. 319.24(5)(a), F.S.

1. Does the dealer have proof that liens were paid off in accordance with state statute? Yes No

2. Does the dealer have proof that trade-ins were sold after the deal was consummated? Yes No

3. Were the traded in vehicles marked as "sold" in the department's database within the 30-day period? Yes No

Comments:

Section V: DEALER PLATES

Use additional sheets if necessary
Is dealer complying with prohibitions against certain uses of dealer plates?

Section 320.13(1)(a), F.S., requires dealer license plates to be valid for use only on vehicles in the dealer's inventory and for sale. Dealer
Plates may not be used on wreckers, parts, or service vehicles, or any vehicles the dealer is accepting compensation for. List assigned
dealer plates.

Section VI: DEALERAGENTS

Use additional sheets if necessary

Name of Agent Evidence Agent is Bona Fide Employee Yes No

Name of Agent Evidence Agent is Bona Fide Employee Yes No

Name of Agent Evidence Agent is Bona Fide Employee Yes No

Name of Agent Evidence Agent is Bona Fide Employee Yes No

Name of Agent Evidence Agent is Bona Fide Employee Yes No

Name of Agent Evidence Agent is Bona Fide Employee Yes No

HSMV 84015S (Revised 07/08) 74 Page 4 of 6

Section VII: FLORIDA STATUTES
Review the following Florida Statutes with a Corporate Officer/Owner or dealer's designee:

316.2935(1)(b) Requires dealers to provide written certification that have inspected vehicle and all pollution control devices
or systems are in place. Three point check for model years 1975-79 and six point check for model years
1980 and newer.

319.001(8) When a title to a new MV has not been transferred, but possession was and the conditions are not satisfied,
the new MV may be resold to a new buyer by the franchise dealer providing the dealer gives written notice
stating, "This vehicle was delivered to a previous purchaser."

319.225(3) Using reassignment on title prior to using reassignment form. Odometer disclosure required and secure
power of attorney.

319.23(6) Required to transfer title and report trade in vehicles within 30 days. (Discuss obtaining proof of insurance,
keeping copies of the registration.)

319.24(5)(a) Pay off liens within 10 working days.

320.0609 Required to transfer license plate and registrations. (Discuss transfer, the Notification of Transfer of
Registration License Plate Form, and dealer's responsibility for transfers.)

320.08 License Plate and titling fees. (Discuss overcharges, refunds, charging title service fees, sales taxes and
keeping proof the refunds were given back.)

320.13 Dealer License Plates. (Discuss the proper use and responsibility of dealer license plates.)

320.131 Misuse and issuance of Temporary Tags. (Discuss keeping records for 5 years, using temporary tags with
Non-Use Affidavits, 30 day issuance, no more than two issued, keeping voided temporary tags, keeping
records and logs.)

320.27(7) Required to have a duly assigned title in possession prior to sale. (Discuss indicia, floor planning, consignment
sales, listings, bank drafts, repossessions, liens, title branding, exporting, and keeping copies of records)

320.27(9)(b)4 Required to provide a purchaser with an Odometer Disclosure Statement and copies of other documents.
(Discuss 5-year record keeping requirements, the word "Exempt" and the proper filling out)

320.27(9)(b)7 Prohibits the use of a dealer license number by anyone other than the dealer. (Discuss the PIN, proper use of
the dealer's name, advertising and bonafide employees.)

320.27(9)(b)12 Prohibits a motor vehicle dealer from requiring a customer to contract with the dealer for physical damage
insurance.
320.27(9)(b)15 Prohibits the sale of a trade-in vehicle before the deal is consummated unless the owner provides written
authorization for the sale.

320.27(9)(b)17 Requires compliance with the Federal Law pertaining to the Consumer Sales Window Form, the Buyers Guide.

320.865 Discuss Consumer Complaints and record. (Discuss the dealer's responsibility, sanctions and penalties.)

626.9551(1) Prohibits any lender of money or extender of credit to negotiate any policy of insurance thro ugh a particular
insurer, group of insurers, agent, or broker of groups of agents or brokers.

Print Examiner's Name: Badge Number:

Examiner's Signature:

Print Dealer Rep. Name: Title:

Dealer Rep. Signature:

HSMV 84015S (Revised 07/08) 75 Page 5 of 6

Comments:

76
HSMV 86072                    DL‐21 

 
  77
 Completion Guidelines for Dealer License Applicants to
Modify Their Existing License, Form HSMV 86072

Modifications are requested only by dealers who are already licensed by the Department.

Con·ect modification box must be checked by the licensed applicant if they are submitting an
application to modify certain information on their license.

Do not use white out or correction tape on this form.

TI1e following documents are required by the Deprutment for modifications to an existing
license:

SUPPLEMENTAL LOCATION ESTABLISHMENT (Add Location)

Documents required for supplemental location establishment for a licensed independent

dealer (yl), wholesale dealer (yW), salvage dealer (SD) and auctions (yA):

• Completed form HSMV 8G072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• True copy of lease agreement/proof of ownership or property tax;
• A copy ofthe original Surety Bond, Irrevocable Letter of Credit, or an original
continuation certificate in the runount of $25,000 for the licensing period that was
submitted with the primary location;
• A garage liability insurance certificate which shall include, at a minimum, $25,000
combined single-limit liability coverage including bodily injury and property damage
protection and $10,000 personal injury protection; OR A general liability insurance
policy coupled with a business automobile policy, which shall include, at a minimum,
$25,000 combined single-limit liability coverage including bodily injury and propetty
drunage protection and $10,000 personal injury protection that was submitted with the
primary location;
• Surety Bond Rider (If the supplemental location has a new fictitious name);
• Division of Corporations registration if a fictitious name is going to be added to the
supplemental location; and
• Fee $50 for the supplemental location.

Documents required for supplemental location establishment for licensed Mobile Home
Dealers (DH), Mobile Home Brokers (BH), and Recreational Vehicle Dealers that sell Used
Recreational Vehicles CRU):

• Completed form HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• True copy of Lease agreement/proof of ownership or property tax;
• A copy ofthe original Surety Bond, Irrevocable Letter of Credit, or an original
continuation certificate in the runount of $25,000 for the licensing period that was

78
 submitted with the primary location; Please note - Recreational Vehicle Dealers must
submit copy of surety bond or original continuation certificate with primary location.
Please note: Mobile home dealers with more than four supplemental locations must
submit an original surety bond, original irrevocable letter of credit, or original
continuation certificate in the amount of $50,000;
Please note: Recreational vehicle dealers with more than four supplemental locations
must submit an original surety bond or original continuation certificate in the amount of
$20,000;

• Recreational vehicle dealers must submit a copy of the Garage Liability Certificate at a
minimum of $25,000 combined single limit liability coverage including bodily injury and
property damage protection and $10,000 personal injury protection that was submitted
with the primary location;
• Mobile home dealers and mobile home brokers that sell recreational vehicles must submit
a copy of the Garage Liability Certificate at a minimum of $25,000 combined single limit
liability coverage including bodily injury and propetty damage protection and $10,000
personal injury protection that was submitted with the primary location;
• Surety Bond Rider (If the supplemental location has a new fictitious name);
• Division of Corporations registration if a fictitious name is going to be added to the
supplemental location; and
• Fee of $50 for the supplemental location.

Documents required for supplemental location establishment for recreational vehicle

dealers that sell new Recreational Vehicles (RV):

• Completed form HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• Manufacturers letter of approval if the supplemental location is going to sell new
recreational vehicles;
• True copy of lease agreement/proof of ownership or property tax;
• A copy ofthe original Surety Bond, Irrevocable Letter of Credit, or an original
continuation certificate in the an10unt of $25,000 for the licensing period that was
submitted with the primary location;
Please note: Recreational vehicle dealers with more than four supplemental locations
must submit an original surety bond or original continuation certificate in the amount of
$20,000;
• A copy of the Garage Liability Certificate at a minimum of $25,000 combined single
limit liability coverage including bodily injury and property damage protection and
$10,000 personal injury protection that was submitted with the primary location;
• Surety Bond Rider (If the supplemental location has a new fictitious name);
• Division of Corporations registration if a fictitious name is going to be added to the
supplemental location; and
• Fee of $50 for the supplemental location.

79
PLEASE NOTE: Mobile home dealers with more than four supplemental locations must submit
an original surety bond, original irrevocable letter of credit, or original continuation certificate in
the amount of $50,000.

Recreational vehicle dealers with more than four supplemental locations must submit an original
surety bond or original continuation certificate in the amount of $20,000.

Documents required for supplemental location establishment for a licensed franchise

dealer Q!F) if exemption(s) or no exemption(s) under section 320.642, Florida Statutes, is
claimed:

• Completed form HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• Manufacturers letter of approval if the supplemental location is going to sell new line­
make(s);
• Final order from the Department ifthe supplemental location is going to sell new line-
make(s);
• True copy of Lease agreement/proof of ownership or property tax;
• Fee of $50;
• A copy of the original Surety Bond, Irrevocable Letter of Credit or an original
• continuation certificate in the amount of $25,000 for the licensing period that was
submitted with the primary location;
• A copy of the Garage Liability Certificate at a minimum of $25,000 combined single
limit liability coverage including bodily injury and property damage protection and
$10,000 personal injury protection that was submitted with the primary location; and
• Surety Bond Rider (If the supplemental location has a new fictitious name).

CHANGE OF LOCATION

Documents required for change oflocation for a licensed independent dealer Qll),
wholesale dealer Q'W), salvage dealer (SD) and auctions Q'A):

• Completed form HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• True copy of lease agreement/proof of ownership or property tax;
• Original license Q! affidavit from dealer if license is lost; and
• Fee of $50.

Documents required for change of location for a licensed recreational vehicle dealer selling
new recreational vehicles CRV):

• Completed fonn HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• Manufacturer's approval letter;
• True copy of Lease agreement/proof of ownership or property tax;

80
 • Original License Q! affidavit from dealer if license is lost; and
• Fee of$25.

Documents required for change of location for a licensed mobile home dealer (DH), mobile
home broker CBH) and recreational vehicle dealer selling used recreational vehicles CRU):

• Completed fotm HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• True copy of Lease agreement/proof of ownership or property tax;
• Original License Q! affidavit from dealer if license is lost; and
• Fee of$25.

Documents required for change of location for a licensed franchise dealer fYF) if no
exemption under section 320.642, Florida Statutes, is claimed:

• Completed form HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• Manufacturer's approval letter;
• True copy of lease agreement/proof of ownership or property tax;
• Original license Q! affidavit from dealer if license is lost;
• Final order approving the relocation from the Department;
• Fee of$50.

Documents required for change of location for a licensed franchise dealer fYF) if
exemption under section 320.642, Flotida Statutes, is claimed:

• Completed fotm HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• An affidavit on the dealership letterhead claiming an exemption under section 320.642,
Florida Statutes and FAC 15C-7.004;
• True copy of lease agreement/proof of ownership or property tax;
• Original license Q! affidavit from dealer if license is lost;
• Final order approving the relocation from the Department; and
• Fee $50.

Documents required for change of location as a result of buy/sell for a licensed franchise
dealer fYF) if no exemption under section 320.642, Flolida Statutes, is claimed:

• Completed form HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• Manufacturer's approval letter;
• True copy of lease agreement/proof of ownership or property tax;
• Original license Q! affidavit from dealer if license is lost;
• Final order approving the relocation from the Department;
• Fee of $50;

81
 • Voluntary Relinquishment of License form (VRL) completed by the selling dealer;
• Buy/Sell Affidavit completed by the buying dealer; and
• Final order(s) from the Department approving the line make(s).

Documents required for change of location as a result of buy/sell for a licensed franchise
dealer (yF) if exemption under section 320.642, Florida Statutes, is claimed:

• Completed form HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• Manufacturer's approval letter;
• True copy of lease agreement/proof of ownership or property tax;
• Original license Q! affidavit from dealer if license is lost;
• Final order approving the relocation from the Department;
• Feeof$50;
• Voluntary Relinquishment of License form (VRL) completed by the selling dealer;
• Buy/Sell Affidavit completed by the buying dealer; and
• Final order(s) from the Department approving the line make(s).

NAME CHANGE

Documents required for change of name for a licensed independent dealer (yl), wholesale
dealers (yW), salvage dealers (SD), auctions (yA), mobile home dealers (DH), mobile home
brokers CBH) and recreational vehicle dealers that sell used recreational vehicles CRU):

• Completed fmm HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• Surety Bond Rider;
• Fictitious Trade Name registration with the Division of Corporations. On-line access at
www.sunbiz.org;
• Licensee name change with the Division of Corporations. On-line access at
www.sunbiz.org;
• Original license Q! affidavit from dealer if license is lost;
• Affidavit from the dealer stating that the majority ofthe ownership of the dealership has
not changed; and
• Fee of $25 per name change.

Documents required for change of name for a licensed recreational vehicle dealer that sell
new recreational vehicles (RV):

• Completed form HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• Manufacturer's letter of approval;
• Surety Bond Rider;
• Fictitious Trade Name registration with the Division of Corporations. On-line access at
www.sunbiz.org;

82
 • Licensee name change with the Division of Corporations. On-line access at
www.sunbiz.org;
• Original license Q! affidavit from dealer if license is lost;
• Affidavit from the dealer stating that the majority of the ownership of the dealership has
not changed; and
• Fee of $25 per name change.

Documents required for change of name for a licensed franchise dealer Q1F) that sell new
vehicles:

• Completed form HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• Surety Bond Rider;
• Fictitious Trade Name registration with the Division of Corporations. On-line access at
www.sunbiz.org;
• Licensee name change with the Division of Corporations. On-line access at
www.sunbiz.org;
• Manufacturer's letter of approval;
• Original license .2! affidavit from dealer if license is lost;
• Affidavit from the dealer stating that the majority of the ownership of the dealership has
not changed and there has been no change in the signatories of the dealer sales and
service agreement; and
• Fee of $25 per name change.

ADDING A FRANCHISE LINE-MAKE

Documents required for adding a franchise line-make:

• Completed form HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• Manufacturers letter of approval for each line-make; and
• Final Order from the Department.

NOTE: No fee is required to add a line-make.

DELETING A FRANCHISE LINE-MAKE

Documents required for deleting a Franchise:

• Completed form HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers.

NOTE: No fee is required to delete a line-make.

83
 MAILING ADDRESS CHANGE

Documents requi1·ed for change of Mailing Address for all license categmies:

• Completed fonn HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers.

NOTE: No fee is required.

The mailing address can also be done at the time of renewal of the franchise dealer
license.

SUPPLEM ENTAL TO MAIN/MAIN TO SUPPLEMENTAL

Documents required for change of supplemental location to main location/main location to

supplemental location for all license categories:

• Completed fonn HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• Original licenses of both the main and supplemental locations; and
• Affidavit from dealer if license is lost.

NOTE: No fee is required.

POSTAL UPDATE

Documents required for Postal Update for all categories of dealer licenses:

• Completed fonn HSMV 86072, Modification to Dealer License for Licensed Motor
Vehicle, Mobile Home, or Recreational Vehicle Dealers;
• Original License;
• Affidavit from dealer if the original license is lost; and
• Letter from Postal Service/County/Municipality.

NOTE: No fee is required.

84
SECTION1

Q1: Who below needs a dealer license?

A. Anyone who is engaged in the business of buying, selling, or dealing in motor vehicles or
offering them for sale at wholesale or retail.
B. Anyone who holds him/herself out through solicitation, advertisement, or otherwise offers to
procure used recreational vehicles for the general public.
C. Both A and B

Q2: Electronic fingerprinting is required for each person listed below except?
A. Sole owner.
B. Partnership members.
C. Full time employees in a responsible management position.
D. Each principal officer and director of a corporation.

Q3: Dealer plates may be used on.

A. Vehicles that are operated in connection with a dealer’s business.
B. Vehicles while being use for demonstration purposes, with or without a representative of the
dealer in the vehicle.
C. Vehicle in transit to or from a dealer’s place of business.
D. All the above.

Q4: Dealers may display vehicles anywhere they want, even in an abandoned lot.
A. True.
B. False.

Q5: Salvage dealers are required to carry a $25,000 Bond and Garage Liability insurance.
A. True.
B. False.

Q6. VI Stands for Independent Motor Vehicle Dealer (i.e., used cars, truck, vans, motorcycle, big rigs)
A. True.
B. False.

Q7. VF Stands for Franchise Motor Vehicle Dealer (i.e., new cars, truck, vans, motorcycle, big rigs)
A. True.
B. False.

85
 FIADA

Section 2

Title and
Registration
Requirements

86
 Florida Title And Registration Requirements

Many changes in title laws and rules have occurred over the years, resulting in changes
in the appearance of Florida title certificates and the way Tax Collectors and the
DIVISION OF MOTORIST SERVICES do business. When the first title was issued
back in 1923 the entire operation was manual. Now a statewide information system
processes millions of title and registration transactions annually. Changes will continue
to take place to make processes more customer-friendly and to enhance security features
to protect the interests of vehicle owners and lienholders.

Proof of Ownership - Reference TL 7 and TL 10

The "certificate of title" has now become nationally recognized as the only "proof of
ownership" for motor vehicles in the United States. For vehicles that are too old to have a
title certificate, Florida will recognize the proof of ownership that was issued at the time
by other states. For many states it will be a notarized bill of sale and the vehicle's last
registration. Proof of ownership from a foreign country is usually in the form of a
registration. A translation of any foreign country document may be required. If you are not
sure what the proof of ownership for a particular vehicle from another state or country
might be, you can always contact your local tax collector's office for assistance. Each
office usually carries up-to date R.L. Polk Manuals that have a wealth of information
about ownership documents for domestic and foreign jurisdictions.

New Vehicles - Never Titled

New vehicles that have never been titled anywhere will not have a title certificate as proof
of ownership. The proof of ownership for a new vehicle is the manufacturer's certificate of
origin (MCO) also known as a certificate of origin (CO) or a manufacturer's statement of
origin (MSO). This document is issued by the manufacturer or distributor of new vehicles.
It is essentially the "birth certificate" for a vehicle. All new cars, trucks, motorcycles and
trailers offered for sale new in the United States will have an MCO.

The face of the MCO will have a complete description of the vehicle and the name of
the dealer the vehicle is assigned to from the manufacturer or distributor. This will
be the first transfer of ownership. When more than one dealer is involved, the
transfer from dealer to dealer should appear in sequence on the reverse side of the
MCO. If the back of the MCO is completely filled with dealer reassignments, then a
separate dealer reassignment (form HSMV 82994) must be used to convey ownership
to subsequent dealers. When a dealer retails or wholesales a vehicle, the back of the
MCO should be used to record the reassignment. See Exhibits TR-1, TR-2 for a sample
MCO and TR-3 for a sample of form HSMV 82994 Motor Vehicle Dealer Title
Reassignment.

87
A duplicate MCO is acceptable only if accompanied by a notarized affidavit from the
Selling dealer. The affidavit should read: "The Original MCO has been lost or
destroyed and the MCO has not previously been submitted with application for title in
any state." The affidavit should have a complete description of the vehicle.
A corrected MCO is acceptable only if accompanied by a notarized affidavit from the
Selling dealer who made the error. The affidavit should state the error and the
correction and should also have a complete description of the vehicle. Information
printed on the MCO by the manufacturer or distributor cannot be corrected.

A vehicle will be titled "New" only when the selling dealer is franchised to sell that
line make of vehicle. An independent dealer may purchase a new vehicle from a
franchised dealer; however, the vehicle will be titled as "Used". An independent dealer
cannot sell a new vehicle as "new" for title purposes nor imply that they are a franchised
dealer. This limitation does not apply to recreational vehicles, van conversions, or any
other motor vehicle manufactured on a truck chassis.

Florida issues title certificates for cars, trucks, motorcycles, travel trailers, motor
homes, mobile homes and trailers that weigh 2000 lbs or more. Therefore, an MCO will
be required from the manufacturer for each of these types of vehicles when new.

Used Vehicles - Previously Titled

Once a vehicle is titled in Florida or anywhere else for that matter, it is considered
used. For vehicles that are sold new and titled for the first time in Florida, that vehicle
will be issued an original Florida title certificate. Each time the ownership of the
vehicle changes or a lien is recorded, a new title certificate is issued. The certificate
with the latest "issue date" is the only title certificate deemed valid for a vehicle.
Previous issue dates are considered "void" titles. When accepting a title, a buyer
should know the latest issue date to make sure you are receiving a valid title
certificate. A check through the local tag agency, the Division of Motorist Services in
Tallahassee, or a private database provider can satisfy that matter.

Since becoming a title state, Florida has had to revise its title several times over the past
years. Most of the revisions have occurred during the last ten years to comply with federal
and state laws. Regardless of which version of the title certificate you might have for a
vehicle, it is valid if it has the latest issue date. For example, if a title was issued in 1949
and the owner never sold the vehicle nor applied for a duplicate title certificate, then the
original title certificate issued in 1949 is still valid.

88
Proof of ownership for a used vehicle from out-of-state would be the certificate of title
issued by that state. Some states do not title older or certain body types of vehicles. In this
instance, the proof of ownership would be the registration or verification of registration
from the out-of-state department of motor vehicles. Proof of ownership for a used vehicle
from a foreign country is usually in the form of a registration. A translation of any foreign
document may be required.

Conforming Title Certificates - Reference TL 9

The Florida Odometer Fraud and Prevention and Detection Act of 1989, effective April
29, 1990, required Florida title certificates to contain certain information that was
mandated by the Code of Federal Regulations that deal with odometer disclosure
statements. Title certificates with a revision date of 1/90 or later conform to the Code of
Federal Regulations. All states' titles certificates must conform to these codes.

This means that Federal regulations require odometer disclosures to be made for all
transfers of ownership on documents created by a secure printing process or by other
secure means. Federal rule specifies that the transferors (sellers) are to make odometer
disclosures by signing and printing their name and the transferees (buyers) are to
acknowledge disclosures by signing and printing their name. The rule specifies that
odometer disclosures must contain the following information:

1. The current odometer reading.

2. The date the odometer was read.
3. The transferor's (seller's) certification that the mileage is:
(a) Actual, or
(b) In excess of the mechanical limits of the odometer, or
(c) Not actual and should not be relied upon.
4. The transferor's name and current address.
5. The transferee's (buyer's) name and current address.
6. The signature and printed name of the transferor and the transferee.
7. The motor vehicle description, to include make, model, year, body type, and
vehicle identification number.

Florida title certificates issued with revision dates of 1/90 or later contain spaces for the
above information and are printed with required security features.

Note: The terms "TMU" (true mileage unknown) or "ETM" (estimated true mileage)
are not acceptable odometer disclosures and will not be accepted by DIVISION OF
MOTORIST SERVICES on any title documents. Odometer disclosures that contain
alterations will not be accepted either. The following vehicles and transactions are
exempt from odometer disclosures:

1. Any motor vehicle that is 10 calendar years old or older as of January 1 of the
current year.

89
2. Any motor vehicle that has a gross weight rating (GWR) of more than
16,000 pounds.
3. Any motor vehicle that is not self-propelled.
4. Any new motor vehicle covered by an MCO transferred between dealers. See

Exhibits TR-4 as an example of a conforming Florida title certificate.

Transferring Ownership

Transferring ownership between two parties is accomplished when the transferor (seller) takes the
title certificate and "signs off' as transferor (seller). The transferor signs his/her name and prints the
name also. The assignment is dated and the odometer disclosure is completed. At the same time,
the transferee (buyer) signs the title and prints his/her name. By doing so, both acknowledge the
odometer disclosure statement as true and correct. The selling price and the date sold spaces are
also completed at this time. None of the spaces can be left blank. This helps prevent tax fraud,
curbstoning and odometer fraud.

If the transfer is between non dealers, then the transferee must take the title to the tax
collector's office and apply for a title in her/his name, pay sales tax and fees and secure a
registration. If a dealer purchases the vehicle or takes the vehicle in trade from a private
party, the dealer's business name is entered as transferee and the dealer representative signs
and prints his/her name.

A title certificate that has more than one owner and their names are connected by
the word "and," requires all their signatures as transferors (sellers). If more than one
owner appears on the title certificate, and their names are joined by the word "or," then only
one person needs to sign off on the title certificate as a transferor (seller). All transferees
(buyers) must sign the title to be named on the title as owners, regardless of how the names
are joined.

Newer versions of the Florida title certificate do not require the signatures of the transferor or
transferee to be notarized because the forms have incorporated a perjury clause. Older versions
of the title certificate do not contain the perjury clause and will require the signature of the
transferee to be notarized in the application section of the title. The rule of thumb regarding
notarizations is, if in doubt and there is a space for notarization, have it notarized.

Title certificates in the name of a company may be signed off by an owner or authorized
representative of the company. The person signing off on the title must reflect their title, e.g.,
owner, president, agent, etc. If the transferee is a company, the title may be signed by an
authorized representative of that company. In either case, the name must be signed and then
printed with the person's title.

Dealers are not required to transfer titles into the name of their dealerships for vehicles
that are in their inventory and remain on the lot for sale. In this case the title is
reassigned to the dealership. If the vehicle is sold to a retail customer, the dealer will get
the buyer to sign the title and print their names, complete the odometer disclosure and
the sales tax information. The dealer will have 30 days from the date the vehicle is
delivered to a customer to make the transfer. If the vehicle is sold wholesale to another
90
dealer, the selling dealer will reassign the title to the purchasing dealer. The odometer
disclosure statement section is completed. Because no sales tax is collected, "resale" is
written in the sales tax collected section of that reassignment. Subsequent wholesale deals
would be handled the same way on the remaining reassignment sections on the back of
the title certificate. Once all of the reassignment sections are completed, a dealer may use
the Motor Vehicle Dealer Reassignment Supplement form until the vehicle is sold to a
retail customer.

Electronic Titles

E-titles are motor vehicle, mobile home or vessel titles held in an electronic form by the
Department. By maintaining the title electronically, the owner eliminates the risk of losing the
title and protects it from theft. Owners with e-titles can request a paper title through the
Department's VirtualOfficewebsite. There is a service fee of $2.50 to convert an e-title to
paper. For more information about e-titles go to http://flhsmv.gov/html/emt.htm.
The Division of Motor Vehicles has implemented an electroniclienandtitlingsystem (e-title)
designed to assist lienholders as well as vehicle owners.
Electronically maintaining the title to your vehicle eliminates the risk of losing it and having
to pay title fees to obtain a duplicate. It is also an effective fraud deterrent because potential
thieves will not have access to your title.
If the lien on a vehicle has been satisfied and the title is electronically maintained, the
Department is encouraging owners to maintain their titles electronically. Customers may still
request that a paper title be printed at any time. Titles are mailed to the address reflected on
the owner’s motor vehicle record and are generally mailed within two (2) days of receipt of
the request. To request a paper title, owners may use the Division of Motor Vehicles website
to submit a request. To obtain a paper title immediately, many taxcollectoroffices offer same
day title printing for $10.00.
Requesting a paper title prior to trading a vehicle with a Florida dealership is not necessary.

Use of Powers of Attorney – Reference TL02

There will be times when the transferor and/or the transferee will not be available to sign the
title or the title itself will not be available for their signatures. In those cases, with specific
qualifications, the transferor and/or transferee may designate an attorney-in fact (typically a
dealer) to sign on their behalf. Remember, that when a person signs the title as either
transferor or transferee, they are transferring ownership and certifying the odometer
disclosure statement.

Federal and state law prohibits an individual who has been appointed as an attorney-in-fact
from acting as both transferor (seller) and transferee (buyer) for purposes of completing
odometer disclosure statements in conjunction with the transfer of ownership of a motor
vehicle, unless a secure power of attorney form is used (see Exhibit TR-7).

This form may be used when:

1. The certificate of title is physically being held by the lienholder, and is not available
for endorsement by the transferor (seller) for the purpose of transferring ownership of the
91
motor vehicle and odometer disclosure.

2. The certificate of title is lost, and is therefore not available for endorsement by the
transferor (seller) for the purpose of transferring ownership of the motor vehicle and
odometer disclosure.

The secure power of attorney (form HSMV 82995) is in three parts (A, B & C), and has an
original and two carbon copies. Part A allows the owner (seller who is trading vehicle to
dealer) to appoint the dealer as attorney-in-fact to sign the title over to the dealership when
the title arrives. If the title has still not arrived, Part B allows the buyer (customer who buys
the trade from previous customer) to appoint the dealer, who now owns the vehicle and
becomes a transferor, to sign the buyer's name on the title. Part C is a certification by the
attorney-in-fact that the odometer disclosure recorded on the title certificate is consistent with
that on the secure power of attorney.

The original copy of the secure power of attorney (form HSMV 82995) is attached to the
original title certificate. The second copy is retained by the dealer for five years. The third
copy is given to the seller (transferor) who completed the power of attorney in Part A.

There is also a non-secure power of attorney (form HSMV 82053, see Exhibit TR-8) that has
limited uses. This form may be used by an individual appointed as attorney-in fact when
completing an odometer disclosure statement as seller (transferor) only or purchaser
(transferee) only. It is also recommended to use this form for any motor vehicle that is
exempt from state odometer disclosure requirements such as trailers.

The seller (transferor) or buyer (transferee) cannot lawfully use form HSMV 82053, Power of
Attorney, to appoint a licensed Florida motor vehicle dealer, an insurance company, or an
employee of a licensed Florida motor vehicle dealer or insurance company as attorney-in-fact
to execute a conforming certificate of title.

The individual appointed must be an independent third party who is not associated with the
dealership or insurance company in any capacity. A licensed motor vehicle dealer or an
insurance company, including all employees, is considered one legal entity.

Whenever there is an alteration or discrepancy in the odometer disclosure on any document

submitted with the application for title, the application must be accompanied by the
following to correct the alteration or discrepancy:

1. Form HSMV 82993, Separate Odometer Statement and Acknowledgment or, if a

dealer is involved, form HSMV 82994, Motor Vehicle Dealer Title Reassignment
Supplement, if applicable.
2. An affidavit signed by the transferor (individual or dealer) explaining the reason
for the alteration or discrepancy.

The Division of Motorist Services will review the documents submitted and check previous
title records to see if the alterations or discrepancies appear to be legitimate. Suspect cases will
92
be referred to law enforcement for investigation. Dealers are strongly urged to check odometer
readings and associated paperwork to make sure the odometer disclosure is accurate and
consistent. There is no profit in having to repurchase a vehicle and let it sit on the lot while
attempting to solve an odometer problem!

Liens – Reference TL33

When the purchase of a vehicle is being financed, a lien will be recorded on the title
certificate indicating the lienholder. The lien information will be recorded on the back of the
title certificate on the last reassignment section, which also serves at the application for title
for the purchaser. The lien may also be recorded on the application for title HSMV 82040 or
82041. A notice of lien can be submitted with a title certificate at a later date to place a lien
on a vehicle that is already titled in an owner's name. Once a lien is recorded with the
Division of Motorist Services, the title cannot be transferred without the lien being satisfied,
or assumed by a new owner with the consent of the lienholder. When taking a vehicle in "on
trade" it is important for a dealer to know that she/he has the title certificate with the latest
issue date and if there are any outstanding liens against the vehicle. The recording of a lien
with an application for Florida title is only a notation of the fact that a financial agreement of
some kind exists between the vehicle owner and the lienholder. The application for title is not
in itself a financial instrument; therefore, a separate financial instrument (retail installment
sales contract) must exist in order for the lien to be considered valid for the purpose of
repossession or foreclosure proceedings.

Repossessions – Reference TL 23

Florida lienholders are required to apply for a Florida Certificate of Title or a Certificate of
Repossession prior to disposing of the repossessed vehicle. If the lienholder chooses to have a
title issued in the name of the lienholder, the lienholder must apply for title through the tax
collector's office and submit the original title certificate with an application for Florida title
(HSMV 82040 or 82041). A new title will be issued reflecting the lienholder as the new
owner.

A lienholder may instead choose to obtain a Certificate of Repossession. In order to receive the
certificate, the lienholder must submit an application for the Certificate of Repossession. The
certificate is then attached to the original titled to allow the vehicle to be sold and transferred. In
this case, the DHSMV database will be updated to reflect that the certificate was issued in the
name of the lienholder; however, it does not change ownership information on the face of the
title. Once the vehicle is sold by the lienholder, the title must be submitted for transfer. Many
dealers choose to get a "repo certificate" because the vehicle will be offered for sale
immediately and the dealer does not want to wait for a title to be issued in their name. The
certificate allows the dealer to legally offer the vehicle for sale, after complying with Florida's
Uniform Commercial Code.

Duplicate Title Certificates – Reference TL 12

A dealer must have a duly assigned title certificate for all vehicles that are purchased or
taken in on trade. Occasionally, an owner will trade in a vehicle or sell a vehicle to a
dealer, but the title is lost. In this case, the dealer needs to have the seller complete an
application for duplicate title (see Exhibit TR-9). The dealer can process the application
93
for duplicate title and have it returned to the dealership. Remember, the dealer must also
get the seller(s) to sign a secure power of attorney in order to transfer the title once it
comes in or the seller must return to the dealership and sign the title. It is important to note
that a dealer who acquires a vehicle without the title should check with the DIVISION OF
MOTORIST SERVICES to find out what the current title and lien status is on the vehicle
to avoid a title problem.

Title Brands – Reference TL 68

Title brands are designated by law for the protection of the consumer. These designations
let the customer know how the vehicle was previously used and/or its previous condition.
It is the responsibility of the seller to inform the potential purchaser of the previous status
or usage of the vehicle before the sale. All brands must be disclosed in writing prior to
consummating the sale. This applies to wholesale and retail transactions. Brands placed
on titles by other states will be carried forward to the Florida title certificate. The
following is a list of the brands placed on Florida title certificates:

1. Rebuilt 7. Taxicab
2. Police Vehicle 8. Kit Car
3. Assembled From Parts (ASPT) 9. Glider Kit
4. Short Term Lease 10. Flood Vehicle
5. Long Term Lease 11. Nonconforming (Mfg. buy back)
6. Replica

94
Note: The Long Term Lease brand does not have to be disclosed. The Short Term Lease
brand does have to be disclosed, however, it may be removed from a title certificate once
the vehicle is no longer being used for hire by the new owner. Nonconforming
(manufacturer's buy back) brand may also be removed after 34 months from original
titling and 36,000 or more miles register on the odometer. All other brands remain on the
title.

VIN Verifications

All new motor vehicles carry a 17 digit vehicle identification number (VIN). The
number is stamped on a plate and located on the driver's side of the dash near the
windshield. For some trucks and older vehicles the VIN may be located on the door or
door jamb area.
For vehicles 1954 and older, Florida titles reflected motor numbers. Older vehicles
will not have 17 digits in their VIN.

Vehicles coming in from out-of-state require a VIN verification. Florida licensed dealers are
authorized to verify VINs for their own and anyone else's vehicles. All dealers should verify
the VIN immediately when they acquire a vehicle. If the VIN does not match the VIN
recorded on the title certificate, there is a problem. VIN discrepancies on out of state titles
can only be corrected by the state that issued the title. If a vehicle is acquired without a VIN
plate local law enforcement or DIVISION OF MOTORIST SERVICES can be contacted to
have the vehicle examined to determine the actual VIN number. A replacement VIN decal
can be obtained from the DIVISION OF MOTORIST SERVICES. If the vehicle is stolen, it
will be confiscated by law enforcement. For this reason, the vehicle should be checked early
on to make sure a VIN plate is affixed.

Registering A Vehicle – Reference RS 30

Florida law requires that, unless exempt, every owner or person in charge of a motor
vehicle which is operated on the public roads shall register their vehicle. Furthermore,
a title certificate cannot be issued to an owner unless the vehicle has a current
registration (unless exempt from registration).

When a dealer sells a vehicle to a retail customer, the dealer is required to apply for the
new owner's title within 30 days from the date the vehicle is delivered to the buyer. This
means that the dealer must also register the vehicle at the time the title application is made
at the tax collector's office. If the purchaser has a valid registration in their name that is
being taken off of a trade in, then that license plate and registration may be transferred to
the newly acquired vehicle. Every attempt should be made to transfer a valid license plate
to a new vehicle.

If a new license plate is being secured for the purchaser, the dealer must secure from the
purchaser proof that personal injury protection (PIP) and property damage liability (PDL)
insurance coverage exists. If a dealer issues a temporary tag to a purchaser; proof of
insurance must also be verified. The purchaser may provide as proof of insurance a Florida
insurance card, policy or binder or a Florida Vehicle Insurance Affidavit. It is
recommended that if the affidavit is used, the dealer may want to verify the information. If
95
an insurance binder is used as proof of insurance, make sure the binder is still valid at the
time of title application. If it has expired, the purchaser must get another binder or supply
other proof of insurance.

The dealer must also request from the purchaser his/her driver license number, as this
information appears on the registration. For a company the dealer will secure the FEID in
place of a driver license number.

A purchaser who does not have a valid license plate to transfer will need a license plate and
registration issued at the time the title is applied for. This means that the "initial registration
fee" of $225.00 may be required, plus the registration fee for the applicable tax class code
and title fees. A dealer should collect these fees up front to avoid a problem later, if the
purchaser fails to pay the dealer for these fees. If a purchaser has failed to pay for their
license plate and the dealer is still holding the plate, the purchaser may attempt to get a
replacement plate, thus avoid paying the dealer for the plate. If a purchaser goes into a tax
collector's office and attempts to secure a replacement plate under these circumstances, the
tax collector's office should check to see if the plate was issued in the last 30 days. If so, the
tax collector's office should be checking with the dealer who transferred the title to see if
they have the plate and direct the purchaser back to the dealer to pick up the plate being
held by the dealer.

If a dealer does not know how to calculate fees or estimate fees for title and registration
purposes, the dealer can contact their local tax collector's office for guidance. If a dealer
sells a vehicle and the purchaser is transferring a license plate and registration the dealer
needs to make sure the plate is not going to expire before the title application is being
made. If it does, the dealer will need proof of insurance and must pay to renew the plate.
Some tag offices will not transfer a license plate without a copy of the registration.

Note: Effective July 1, 2010 the DIVISION OF MOTORIST SERVICES instituted a

process to allow the transfer of a metal plate from the trade-in to the newly acquired
vehicle via an approved third party provider at the time of sale. The following link
provides the current list of approved providers: http://www.flhsmv.govietrietr-
vendor.html

Note: Effective January 1, 2013 lienholders will be required to issue liens in electronic format only.

96
List of Exhibits

Exhibit TR-1, Manufacturer’s Certificate of Origin (Front).............................................. 98

Exhibit TR-2, Manufacturer’s Certificate of Origin (Back).............................................. 99

Exhibit TR-3, Title Reassignment Supplement................................................................. 100

Exhibit TR-4, Sample Certificate of Title......................................................................... 102

Exhibit TR-5, Lien Satisfaction........................................................................................ 104

Exhibit TR-6, Odometer Disclosure Statement................................................................ 105

Exhibit TR-7, Power of Attorney/Odometer Disclosure.................................................. 106

Exhibit TR-8, NonSecure Power of Attorney.................................................................. 107

Exhibit TR-9, Application for Duplicate or Lost Title..................................................... 108

Exhibit TR-10, Application for Certificate of Title With/Without Registration.............. 110

97
 
EXHIBIT TR-1
 
MANUFACTURER'S CERTIFICATE OF ORIGIN
FRONT

  98
 
EXHIBIT TR-2
 
 
MANUFACTURER'S CERTIFICATE OF ORIGIN BACK
 
             READ THE DIRECTIONS ON THE LEFT STRIP BEFORE COMPLETING THE DOCUMENT 

 
 
 
 

  99
 Exhibit TR-3

100
 
Exhibit TR-3
Back – In part
 
 
WHEN SHOULD THIS FORM BE USED?
 
FORM HSMV 82994, MOTOR VEHICLE TITLE REASSIGNMENT SUPPLEMENT,
MUST BE USED WHEN:
 
1. with conforming Florida Certificate(s) of Title to make additional dealer
reassignments and odometer disclosures when .rut reassignment and
odometer disclosure spaces on the reverse side of the Certificate of Title
have been used;
or
2. with non-conforming Certificate(s) of Title to make reassignments and
odometer disclosures;
or
3. with conforming·MCO, when the MCO is not available at the time of sale;
or
4. with all out-of-state non-conforming Certificate(s) of Title to make dealer
reassignments and odometer disclosures.
or
              5.   when  
 
 
              NOTE: 
 
 
 
1. The original HSMV 82994 is to be surrendered with the application for title.
 
2. The copy of the HSMV 82994 is to be retained by the dealer in his/her records
for a period of five (5) years. It is recommended the individual seller(s) retain a copy of this
form for their records.

  101
 Exhibit TR-4
 
 

DIVISION OF MOTOR VEHICLES  DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES 

BOYDE WALDEN  JULIE JONES 
DIRECTOR  EXECUTIVE DIRECTOR 

 
102
 
Exhibit TR-4
 
 

  103
 Exhibit TR-5
STATE OF FLORIDA
DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES
DIVISION OF MOTORIST SERVICES

LIEN SATISFACTION
Check One:  Motor Vehicle  Mobile Home  Off-Highway Vehicle  Vessel
Vehicle/Vessel
Title Number:
Identification Number:

Year: Make/Manufacturer: Body Type: Color:

Registered Owner(s) Date of Issue:

Name(s): (Last Name First)

Street Address:

City: State: Zip:

FIRST LIENHOLDER Lien Date: (month-day-year) Lien Satisfaction Date: (month-day-year)

Name:

Street Address:

City: State: Zip:

Sample
SECOND LIENHOLDER Lien Date: (month-day-year) Lien Satisfaction Date: (month-day-year)

Name:

Street Address:

City: State: Zip

LIEN SATISFACTION:
THE UNDERSIGNED HOLDER OF ABOVE DESCRIBED LIEN(S) ON THE MOTOR VEHICLE, MOBILE HOME, OFF HIGHWAY VEHICLE OR
VESSEL DESCRIBED HEREON ACKNOWLEDGES SATISFACTION THEREOF.
NOTE: IF THE FIRST AND SECOND LIENHOLDER ARE THE SAME PERSON OR ENTITY AND ONLY ONE LIEN IS BEING SATISFIED, DO NOT PERFORATE
OR USE A PAID STAMP. COMPLETE THE APPROPRIATE SPACE BELOW FOR THE LIEN THAT IS BEING SATISFIED.

UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE READ THE FORGOING DOCUMENT AND THAT THE FACTS
IN IT ARE TRUE.

First Lienholder Name:

Print Title of Authorized Agent for Lienholder:

Signature of Authorized Agent For Lienholder:

Second Lienholder Name:

Print Title of Authorized Agent for Lienholder:

Signature of Authorized Agent For Lienholder:

NOTE: LIENHOLDER MUST COMPLETE ALL APPLICABLE SECTIONS OF THIS FORM INCLUDING DESCRIPTION OF THE MOTOR VEHICLE, MOBILE HOME
OR VESSEL, NAME AND ADDRESS OF THE OWNER(S), AND NAME AND ADDRESS OF THE LIENHOLDER. THE DATE OF LIEN MUST BE THE
SAME AS THAT SHOWN ON THE TITLE CERTIFICATE. THE LIEN SATISFACTION MUST BE PROPERLY EXECUTED AND MAILED TO DEPARTMENT
OF HIGHWAY SAFETY AND MOTOR VEHICLES, DIVISION OF MOTORIST SERVICES, NEIL KIRKMAN BUILDING, 2900 APALACHEE PARKWAY,
TALLAHASSEE, FLORIDA 32399, BY THE LIENHOLDER WITHIN TEN (10) DAYS AFTER FINAL PAYMENT FOR MOTOR VEHICLES, MOBILE HOMES,
AND OFF-HIGHWAY VEHICLES AND WITHIN THIRTY (30) DAYS FOR VESSELS.

HSMV 82260 (REV.07/11)S www.flhsmv.gov

104
 STATE OF FLORIDA Exhibit TR-6
DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES
DIVISION OF MOTORIST SERVICES
SUBMIT THIS FORM TO YOUR LOCAL TAX COLLECTOR OFFICE
www.flhsmv.gov/offices/

SEPARATE ODOMETER DISCLOSURE STATEMENT AND ACKNOWLEDGMENT

VEHICLE DESCRIPTION
Vehicle Identification Number Year Make Color Body Title Number

ODOMETER DISCLOSURE STATEMENT

WARNING: Federal and State law requires that you state the mileage in connection with an application for a
Certificate of Title. Failure to complete or providing a false statement may result in fines and/or imprisonment.

WE STATE THAT THIS 5 or 6 DIGIT ODOMETER NOW READS , .XX (NO TENTHS) MILES,
DATE READ ________/_______/________, AND WE HEREBY CERTIFY THAT TO THE BEST OF OUR KNOWLEDGE THE
ODOMETER READING:
1. REFLECTS ACTUAL MILEAGE.
CAUTION:
Read carefully before 2. IS IN EXCESS OF ITS MECHANICAL LIMITS.(EXCESS OF ITS MECHANICAL LIMITS APPLIES TO 5 DIGIT ODOMETERS)
checking a box.
3. IS NOT THE ACTUAL MILEAGE. WARNING – ODOMETER DISCREPANCY

UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE READ THE FOREGOING DOCUMENT AND THAT THE FACTS STATED IN IT ARE TRUE.

Seller’s Signature Seller’s Printed Name

Sample
Seller’s Street Address

City State Zip

Buyer’s Signature Buyer’s Printed Name

Buyer’s Street Address

City State Zip

WHO IS AUTHORIZED TO COMPLETE THIS FORM?

ANY PERSON WHO IS BUYING OR SELLING A MOTOR VEHICLE AND WHO MUST MAKE OR ACKNOWLEDGE AN ODOMETER
DISCLOSURE, IN ORDER TO COMPLY WITH STATE OR FEDERAL ODOMETER DISCLOSURE LAW.
WHEN SHOULD THIS FORM BE USED?
1. WHEN A MOTOR VEHICLE, FOR WHICH AN ODOMETER DISCLOSURE IS REQUIRED, HAS BEEN SOLD.
2. WHEN A MOTOR VEHICLE, FOR WHICH AN ODOMETER DISCLOSURE IS REQUIRED, HAS BEEN PURCHASED.
3. WHEN AN ODOMETER DISCLOSURE STATEMENT AND ACKNOWLEDGMENT BETWEEN THE BUYER AND THE SELLER IS
REQUIRED, BUT NO ODOMETER DISCLOSURE STATEMENT HAS BEEN MADE ON ANOTHER STATE OR FEDERAL FORM.
WHEN SHOULD THIS FORM NOT BE USED?
1. WHEN A FLORIDA TITLE WHICH WAS ISSUED ON OR AFTER APRIL 29, 1990 IS AVAILABLE.
2. WHEN A FORM HSMV 82994, MOTOR VEHICLE DEALER TITLE REASSIGNMENT SUPPLEMENT, HAS BEEN USED.
3. WHEN A FORM HSMV 82995, MOTOR VEHICLE DEALER POWER OF ATTORNEY/ODOMETER DISCLOSURE, HAS BEEN USED.
4. WHEN AN OUT-OF-STATE TITLE, WHICH CONFORMS TO FEDERAL LAW, IS USED TO TRANSFER A MOTOR VEHICLE.
FILING:
1. COPIES SHOULD BE EXCHANGED BETWEEN THE SELLER AND THE BUYER. DEALERS MUST RETAIN THIS DOCUMENT IN THEIR
RECORDS FOR A PERIOD OF FIVE YEARS.
2. IT IS NOT NECESSARY TO FILE THIS FORM OR ANY COPY OF THIS FORM WITH THE STATE OF FLORIDA, UNLESS REQUESTED TO
DO SO BY THE DIVISION OF MOTORIST SERVICES.

Check your local phone book government pages or visit the following website for current mailing addresses: http://www.flhsmv.gov/offices/

HSMV 82993 (REV. 11/11) 105

 EXHIBIT TR-7

106

 
 Exhibit TR-8
STATE OF FLORIDA
DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES – DIVISION OF MOTORIST SERVICES

SUBMIT THIS FORM TO YOUR LOCAL TAX COLLECTOR OFFICE

www.flhsmv.gov/offices/

POWER OF ATTORNEY FOR A MOTOR VEHICLE, MOBILE HOME OR VESSEL

___________________________
(Date)

I/We hereby name and appoint, __________________________________________________________, to be my/our

(Full Legibly Printed Name is Required)
lawful attorney-in-fact, to act for me/us, in applying for an original or duplicate certificate of title, to register, transfer title,
or record a lien to the motor vehicle, mobile home or vessel described below, and to print my/our name and sign their
name, in my/our behalf. My attorney-in-fact can also do all things necessary to the application or any other related
instrument and to bind me/us in as sufficient a manner as I/we myself/ourselves could do, were I/we personally present
and signing the same.
With full power of substitution and revocation, I/we hereby ratify and confirm whatever my/our said attorney-in-fact may
lawfully do or cause to be done in the virtue hereof.

CHECK ONE: Motor Vehicle Mobile Home Vessel

Year Make/Manufacturer Body Type Title Number

Sample
Vehicle/Vessel Identification Number

NOTICE TO OWNER(S): COMPLETE THIS FORM IN ITS ENTIRETY PRIOR TO SIGNING.

UNDER PENALTIES OF PERJURY, I/WE DECLARE THAT I/WE HAVE READ THE FOREGOING DOCUMENT AND
THAT THE FACTS STATED IN IT ARE TRUE.

_________________________________________________ __________________________________________________
(Signature of Owner "Grantor”) (Legibly Printed Name of Owner "Grantor")

________________________________________________________________________________________________________
(Driver License, Identification Card or FEID Number for Owner) (Date of Birth for Owner, if applicable)

________________________________________________________________________________________________________
(Owner’s Address ) (City) State) (Zip)

_________________________________________________ __________________________________________________
(Signature of Co-Owner "Grantor,” if applicable) (Legibly Printed Name of Co-Owner "Grantor," if applicable)

________________________________________________________________________________________________________
(Driver License, Identification Card or FEID Number for Co-Owner) (Date of Birth for Co-Owner, if applicable)

________________________________________________________________________________________________________
(Co-Owner’s Address) (City) (State) (Zip)

This non-secure power of attorney form may be used when an individual or entity appointed as the attorney-in-fact will
be completing the odometer disclosure statement as the buyer only or the seller only. However, this form cannot be
used to allow an individual or entity (such as a dealership) to sign as both buyer and seller for the purpose of disclosing
the odometer reading. This may be accomplished only with the secure power of attorney (HSMV 82995) when:
(a) the title is physically being held by the lienholder; or
(b) the title is lost.
NOTE: A licensed dealer and his/her employees are considered a single entity.

Check your local phone book government pages or visit the following website for current mailing addresses:
http://www.flhsmv.gov/offices/
HSMV 82053 (Rev. 12/11) S www.flhsmv.gov

107
 STATE OF FLORIDA
DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES
DIVISION OF MOTORIST SERVICES Exhibit TR-9
SUBMIT THIS FORM TO YOUR LOCAL TAX COLLECTOR OFFICE
www.flhsmv.gov/offices/
APPLICATION FOR DUPLICATE OR LOST IN TRANSIT/REASSIGNMENT FOR A
MOTOR VEHICLE, MOBILE HOME OR VESSEL TITLE CERTIFICATE
1 TYPE OF APPLICATION
VEHICLE/VESSEL VEHICLE/VESSEL VEHICLE/VESSEL DUPLICATE WITH TRANSFER:
DUPLICATE: LOST IN TRANSIT: (Both parties must be present for this transaction)
(Fee Required) NOTE: No fee required if vehicle application OR AND NOTE: When joint ownership, please indicate if “or” or
LOST STOLEN is made within 180 days from last title “and” is to be shown on the title when issued. If neither box is checked, the
issuance date and has been lost in mailing. title will be issued with “and”.
Damaged (Certificate of Title must be submitted)
NOTE: An indication of lost, stolen or damaged is required.
OWNER’S NAME (Last, First, Middle Initial) Owner’s E-Mail Address PURCHASER’S NAME (Last, First, Middle Initial) Purchaser’s E-Mail Address

CO-OWNER’S NAME (Last, First, Middle Initial) Co-Owner’s E-Mail Address CO-PURCHASER’S NAME (Last, First, Middle Initial) Co-Purchaser’s E-Mail Address

OWNER’S MAILING ADDRESS PURCHASER’S MAILING ADDRESS

CITY STATE ZIP CITY STATE ZIP

CAUTION: IF ADDRESS DIFFERS FROM DMV RECORDS, DATE OF BIRTH PURCHASER’S DL/ID # CO-PURCHASER’S DL/ID#
ADDRESS VERIFICATION MUST BE SUBMITTED
2 APPLICATION FOR DUPLICATE IS MADE BY:
MOTOR VEHICLE MOBILE HOME OR RECREATIONAL VEHICLE DEALER/
LIENHOLDER DATE OF LIEN AUCTION LICENSE NUMBER (DEALER/AUCTION LICENSE NUMBER DOES NOT APPLY TO VESSELS:
LIENHOLDER OR DEALER/AUCTION NAME:
Owner
ADDRESS: CITY: STATE: ZIP:
3 MOTOR VEHICLE, MOBILE HOME OR VESSEL DESCRIPTION

Sample
Vehicle/Vessel Identification Number Make/Manufacturer Year Body Color License Plate or Vessel Registration Number Florida Title Number

4 VEHICLE USAGE/BRANDS
SHORT TERM LEASE LONG TERM LEASE POLICE VEHICLE PRIVATE USE FLOOD
TAXI
REPLICA KIT CAR REBUILT ASSEMBLED FROM PARTS MANUFACTURER’S BUY BACK
5 LIENHOLDER INFORMATION
If no lien, Print “None” FEID # DL# & Sex and Date of Birth DMV Account # Date of Lien Lienholder Name

Lienholder E-Mail Address Lienholder Mailing Address City State Zip

If Lienholder authorizes the Department to send title to the owner, check box and countersign.

If this box is not checked, title will be mailed to the first lienholder. (DOES NOT APPLY TO VESSELS) (Signature of Lienholders Representative)

6 APPLICATION ATTESTMENT/SIGNATURES AND ODOMETER DECLARATION/DISCLOSURE

WARNING: Federal and state law require that you state the mileage in connection with an application for Certificate of Title. Providing a false statement may result in fines or imprisonment.

I (WE) STATE THAT THIS 5 or 6 DIGIT ODOMETER NOW READS , XX (NO TENTHS) MILES,
DATE READ ________/________/_________, AND I/WE HEREBY CERTIFY THAT TO THE BEST OF MY/OUR KNOWLEDGE THE ODOMETER READING:
CAUTION: READ CAREFULLY BEFORE YOU CHECK A BOX
1. REFLECTS ACTUAL MILEAGE.
2. IS IN EXCESS OF ITS MECHANICAL LIMITS. (EXCESS OF ITS MECHANICAL LIMITS APPLIES TO 5 DIGIT ODOMETERS)
3. IS NOT THE ACTUAL MILEAGE. WARNING - ODOMETER DISCREPANCY
I CERTIFY THAT THE MOTOR VEHICLE/VESSEL DESCRIBED ABOVE WILL NOT BE OPERATED ON THE STREETS AND HIGHWAYS/WATERWAYS OF
THIS STATE AND NO FLORIDA LICENSE PLATE HAS BEEN TRANSFERRED TO OR PURCHASED FOR THIS MOTOR VEHICLE.
I am/we are the owner(s), lienholder(s), and am legally authorized to apply for and receive the Duplicate Certificate of Title. I/we further agree to
indemnify the Department and defend the Certificate of Title against all actions or claims by any person.
UNDER PENALTIES OF PERJURY, I/WE DECLARE THAT I/WE HAVE READ THE FOREGOING DOCUMENT AND THAT THE FACTS STATED IN IT ARE TRUE.
IF APPLICABLE, I ATTEST TO HAVING Date Sold Selling Price $
ACQUIRED THE MOTOR VEHICLE, MOBILE PURCHASE GIFT INHERITANCE COURT ORDER
HOME OR VESSEL DESCRIBED ABOVE BY:

Signature of Printed Name

Purchaser: _______________________________________________________________________ of Purchaser: _______________________________________________________________________

Signature of Printed Name of

Co-Purchaser: _____________________________________________________________________ Co-Purchaser’s: _____________________________________________________________________

Signature of Seller/ Printed Name of

Owner/Lienholder: __________________________________________________________________ Seller/ Owner/Lienholder: ______________________________________________________________

Signature of Printed Name of

Co-Owner: ________________________________________________________________________ Co-Owner: __________________________________________________________________________

7 FOR FLORIDA DMV OR TAX COLLECTOR/LICENSE PLATE AGENCY USE ONLY

Duplicate authorization
Signature Printed Name County Agency # Date Completed
verification completed 108
HSMV 82101 (Rev. 06/11) S www.flhsmv.gov
 Instructions for Completing the Form HSMV 82101
Section 1 – Type of Application
 Vehicle/vessel duplicate – This box indicates you want to order a replacement title. Also, check the appropriate box indicating
lost, stolen or damaged. A fee is required for this type of application.
 Vehicle/vessel lost in transit – This box indicates you have ordered a title and at least 20 days have passed and you have not
received the title. No fee is required if the application is made within 180 days of the last title issuance which was lost in the mail.
Fees are charged for duplicates or lost in transit requests after more than 180 days from the previous issuance.
 Vehicle/vessel duplicate with transfer – This box should be checked if you need to order a duplicate title and immediately transfer
it to another owner. Both parties must be present and have photo identification. A power of attorney may not be used, except when a
total loss from an insurance company is being paid.
Address Change Directions – For an individual owner or lienholder, if the address differs from the address on the department’s
record, one of the following must be submitted:
o Driver license
o Paid receipt for utility or telephone service
o Proof of homestead exemption
o Paid contract or turn-on order for utility service
o Rental or lease contract agreement
o Current year motor vehicle, mobile home or vessel certificate of registration
o Copy of insurance policy for motor vehicle, mobile home or vessel
o Other documentary evidence that provides independent proof of address change

Section 2 – Application for Duplicate is made by: Check the appropriate box to indicate who is applying for the duplicate. Provide
name, address and, if you are a dealer, provide your dealer license number.

Sample
Section 3 – Motor Vehicle, Mobile Home or Vessel Description: Complete all applicable information. The purchaser must provide a
license plate or vehicle registration number if you are requesting a duplicate with transfer unless the vehicle or vessel will not be operated
on Florida highways or waterways. If the vehicle or vessel will not be operated on Florida highways or waterways, the box in section 6
must be checked stating such.
Section 4 – Vehicle Usage/Brands: Check the appropriate box to indicate how the vehicle will be used. If the vehicle is your personal
vehicle, private use should be checked.
Section 5 – Lienholder Information: If there is no lienholder, the word none should be indicated in the first box. If a lien is being added
to the record at the time the application is submitted, all information should be completed.

Section 6 – Application Attestment/Signatures and Odometer Declarations/Disclosures: Check the box to indicate whether the
vehicle has a five or six-digit odometer and enter the odometer reading from the vehicle. The vehicle is exempt from the odometer
requirement if it is 10 years old or older.
 Enter the odometer reading from the motor vehicle, unless the motor vehicle is exempt from the odometer requirement.
If there is any reason to doubt the odometer reading does not accurately reflect “actual” mileage, check the box to indicate
“not actual mileage.” If the vehicle has more than 99,999 on the odometer reading and it is a 5-digit odometer, the box “in
excess of mechanical limits” must be checked.
 If a duplicate with transfer is requested, enter the date of sale and the selling price. The appropriate box indicating the type
of transaction must also be checked. If the vehicle/vessel will not be operated on Florida highways or waterways, the box
must be checked.
 The appropriate customer(s) must sign and print their names in the spaces provided.

Fees and Addresses:

Fees are located on our website http://www3.flhsmv.gov/DMV/Proc/Fees/Fees-01.PDF. Addresses for all Florida county
tax collectors’ offices are located on our website at: http://www.flhsmv.gov/offices. Some county agencies offer a fast title
service for an additional fee.

The applicant must provide proof of identity (driver license, identification card, etc.) with their completed application. This
includes proof of identity for any individual signing as an authorized agent for a company/business, when applicable. This
condition does not apply to a Florida licensed motor vehicle, mobile home or recreational dealer, a Florida licensed motor
vehicle auction, a licensed insurance company, a lienholder, a Florida vessel dealer or their authorized agent.

Check your local phone book government pages or visit the following website for current mailing addresses:
http://www.flhsmv.gov/offices/
THIS FORM IS A COMBINATION OF FORMS HSMV 82101, 82055 AND 87009.
HSMV 82101 (Rev. 06/11) S www.flhsmv.gov
109
 FLORIDA DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES
APPLICATION FOR CERTIFICATE OF TITLE WITH/WITHOUT REGISTRATION
Exhibit TR-10
SUBMIT THIS FORM TO YOUR LOCAL TAX COLLECTOR OFFICE
www.flhsmv.gov/offices/
CHECK APPLICATION TYPE: ORIGINAL TRANSFER VEHICLE TYPE: MOTOR VEHICLE MOBILE HOME VESSEL OFF-HIGHWAY VEHICLE: ATV ROV MC

1 OWNER / APPLICANT INFORMATION

Customer Number Do you want the certificate of title to Owner Co-Owner Unit Number Fleet Number
remain electronic?
Are you a Florida resident? yes no yes no
yes no
Are you an alien? yes no yes no
Iiiiiii

OR AND NOTE: When joint ownership, please indicate if “or” or “and” is to be shown on title when issued. If neither box is checked, the title will be issued with "and."
If applicable: Life Estate/Remainder Person Tenancy By the Entirety With Rights of Survivorship Owner's County of Residence: _____________________________________
Owner’s Name As It Appears on Driver License (First, Full Middle/Maiden, & Last Name) Owner’s Email Address Date of Birth Sex FL Driver License or FEID/Suffix #

Co-Owner/Lessee’s Name As It Appears on Driver License (First, Full Middle/Maiden, & Last Name) Co-Owner’s/Lessee’s Email Address Date of Birth Sex FL Driver License or FEID/Suffix #

Owner’s Mailing Address(Mandatory) City State Zip

Co-Owner’s/Lessee’s Mailing Address (Mandatory) City State Zip

Owner’s/Lessee’s Physical Street Address in Florida (Mandatory) City State Zip

Mobile Home Physical Address (if applicable) Check if in a mobile home rental park with 10 or more lots. City State Zip

Mail To Customer Name (If different From Above Owner) Mail To Customer’s Email Address Date of Birth Sex FL Driver License or FEID/Suffix #

Mail To Customer Address (If different From Above Mailing Address) City State Zip

2 MOTOR VEHICLE , MOBILE HOME OR VESSEL DESCRIPTION

Vehicle/Vessel Identification Number Make/Manufacturer Year Body Color Florida Title Number

Sample
Previous State of Issue License Plate or Vessel Registration Number Weight Length BHP/CC GVW/LOC VAN USE, IF APPLICABLE
Ft. In.
PASSENGER OTHER
TYPE HULL MATERIAL PROPULSION FUEL *DRAFT OF VESSEL
Open Motorboat Houseboat Personal Watercraft Wood Aluminum Outboard Sail Gas (The depth of water a
Cabin Motorboat Pontoon Canoe Fiberglass Steel Inboard Air Propelled Diesel vessel draws)
Auxiliary Sailboat Airboat Other _________ Wood/Fiberglass Inboard/Outboard Electric
FT. ______ IN. ______
Inflatable Sailboat Specify Other_____________________ Other_____________________ Other_____________ *For all vessels 26’ or more in
Specify Specify Specify length and all sailboats
USE OF VESSEL PREVIOUS
Recreational (Pleasure) Commercial Blue Crab Commercial Stone Crab Government Commercial Sponge OUT-OF-STATE
Dealer/Manuf. Commercial Fish Commercial Live Bait Commercial Shrimp Recip. Commercial Charter Commercial Other ___________ REGISTRATION NUMBER:
Exempt Hire (Livery) Commercial Mackerel Commercial Shrimp Non-Recip. Commercial Oyster Commercial Spiney Lobster
Previously Federally Documented Vessel, Attach Copy of: State of Principal Use
U.S. Coast Guard Release From Documentation Form; or Copy of Canceled Documentation Papers
3 BRANDS, USAGE AND TYPE (Check Applicable Boxes)
SHORT TERM LEASE LONG TERM LEASE REBUILT POLICE VEHICLE PRIVATE USE TAXI CAB FLOOD VEHICLE ILEV VEHICLE
ASSEMBLED FROM PARTS REPLICA KIT CAR GLIDER KIT MANUFACTURER’S BUY BACK AUTONOMOUS VEHICLE ELECTRIC VEHICLE
4 LIENHOLDER INFORMATION
CHECK Date of Lien Lienholder's Name
FEID # DL # and Sex and Date of Birth DMV Account #
IF ELT
CUSTOMER
Lienholder’s Email Address Lienholder's Address City State Zip

If Lienholder authorizes the Department to send the motor vehicle or mobile home title to the owner, check box and countersign: ____________________________________________________________________
(Does not apply to vessels). If box is not checked, title will be mailed to the first lienholder. (Signature of Lienholder’s Representative)
5 TRANSFER TYPE
IF OWNERSHIP HAS TRANSFERRED, HOW AND WHEN WAS THE VEHICLE, MOBILE HOME, OR VESSEL ACQUIRED?
SALE GIFT REPOSSESSION COURT ORDER OTHER (SPECIFY) __________________________________________ DATE ACQUIRED _________/___________/______________
6 ODOMETER DECLARATION

WARNING: Federal and State law requires that you state the mileage in connection with an application for a Certificate of Title. Failure to complete or providing a false statement may result in fines or imprisonment.

I/WE STATE THAT THIS 5 OR 6 DIGIT ODOMETER NOW READS , .XX (NO TENTHS) MILES, DATE READ _____ /_____ / ________ AND I/WE HEREBY CERTIFY
THAT TO THE BEST OF MY/OUR KNOWLEDGE THE ODOMETER READING:

1. REFLECTS ACTUAL MILEAGE. 2. IS IN EXCESS OF ITS MECHANICAL LIMITS. 3. IS NOT THE ACTUAL MILEAGE.

7 DEALER SALES TAX REPORT AND VEHICLE TRADE IN INFORMATION (IF APPLICABLE)
FLORIDA SALES TAX REGISTRATION NUMBER DATE OF SALE NET SELLING PRICE DEALER LICENSE NUMBER AMOUNT OF TAX DEALER / AGENT SIGNATURE

YEAR OF TRADE IN MAKE OF TRADE IN TITLE NUMBER OF TRADE IN (IF VEHICLE IDENTIFICATION NUMBER OF TRADE IN
KNOWN)

www.flhsmv.gov
110
HSMV 82040 – REV. 06/12
 8 MOTOR VEHICLE IDENTIFICATION NUMBER VERIFICATION
THIS SECTION REQUIRES A PHYSICAL INSPECTION AND A VERIFICATION OF THE VEHICLE IDENTIFICATION NUMBER (VIN) (OR THE MOTOR NUMBER FOR MOTOR VEHICLES MANUFACTURED
PRIOR TO 1955) OF THE MOTOR VEHICLE DESCRIBED ON THIS FORM BY A LICENSED DEALER, FLORIDA NOTARY PUBLIC, POLICE OFFICER, OR FLORIDA DIVISION OF MOTOR VEHICLES
EMPLOYEE OR TAX COLLECTOR EMPLOYEE. IF THE VIN IS VERIFIED BY AN OUT OF STATE MOTOR VEHICLE DEALER, THE VERIFICATION MUST BE SUBMITTED ON THEIR LETTERHEAD
STATIONERY. COMPLETE THIS SECTION ON ALL USED MOTOR VEHICLES, INCLUDING TRAILERS, (WITH ABBREVIATION OF "TL" WITH A WEIGHT OF 2,000 POUNDS OR MORE) NOT CURRENTLY
TITLED IN FLORIDA.
I, the undersigned, certify that I have physically inspected the above described vehicle and find the vehicle identification number to be:
(Vehicle Identification Number)
__________________________________ ___________________________________________________________________________ _____________________________________________________________________________________________
DATE SIGNATURE PRINTED NAME

Law Enforcement Officer or Florida Dealer/Agency Name _______________________________________________________ Badge # or Florida Dealer # ______________________ Notary Stamp or Seal

FL DMV/Tax Collector Employee ______________________________________________ Florida Compliance Examiner/Inspector Badge or ID Number___________________________

COMMISSIONED NAME OF FLORIDA NOTARY: __________________________________________________ NOTARY'S SIGNATURE _________________________________________________

(Print, Type or Stamp)

9 SALES TAX EXEMPTION CERTIFICATION

THE PURCHASE OF A RECREATIONAL VEHICLE TO BE OFFERED FOR RENT AS LIVING ACCOMMODATIONS DOES NOT QUALIFY FOR EXEMPTION. I CERTIFY THE RECREATIONAL VEHICLE, MOBILE HOME OR VESSEL DESCRIBED HAS
BEEN PURCHASED AND IS EXEMPT FROM THE SALES TAX IMPOSED BY CHAPTER 212, FLORIDA STATUTES, BY:

PURCHASER (STATE AGENCIES, COUNTIES, ETC.) HOLDS VALID EXEMPTION CERTIFICATE CONSUMER’S CERTIFICATE OF EXEMPTION NUMBER

MOTOR VEHICLE MOBILE HOME VESSEL WILL BE USED EXCLUSIVELY FOR RENTAL
SALES TAX REGISTRATION NUMBER

I hereby certify that ownership of the motor vehicle, mobile home or vessel described on this application, is not subject to Florida Sales and Use Tax for the following reason: INHERITANCE GIFT

DIVORCE DECREE TRANSFER BETWEEN HUSBAND AND WIFE EVEN TRADE OR TRADE DOWN (State the facts of the even trade or trade down and the transferor information, including
the transferor's name and address, below under "Other: Explain.")
OTHER: (EXPLAIN)

10 REPOSSESSION DECLARATION
IF CHECKED, THE FOLLOWING CERTIFICATIONS ARE MADE BY THE APPLICANT:

I CERTIFY THAT THIS MOTOR VEHICLE, MOBILE HOME OR VESSEL WAS REPOSSESSED UPON DEFAULT IN THE TERMS OF THE LIEN INSTRUMENT AND IS NOW IN MY POSSESSION.

Sample
(VESSEL) A PHOTOCOPY OF THE LIEN INSTRUMENT FOR THE VESSEL IS REQUIRED AND ATTACHED.
I AM REQUESTING THAT AN ORIGINAL CERTIFICATE OF REPOSSESSION BE ISSUED FOR THE MOTOR VEHICLE OR MOBILE HOME IN LIEU OF A TITLE (REPOSSESSION).
I AM REQUESTING THAT A DUPLICATE CERTIFICATE OF REPOSSESSION BE ISSUED FOR THE MOTOR VEHICLE OR MOBILE HOME, AS THE ORIGINAL HAS BEEN LOST OR DESTROYED.

11 NON-USE AND OTHER CERTIFICATIONS

IF CHECKED, THE FOLLOWING CERTIFICATIONS ARE MADE BY THE APPLICANT:

I CERTIFY THAT THE CERTIFICATE OF TITLE IS LOST OR DESTROYED.

THE VEHICLE IDENTIFIED WILL NOT BE OPERATED ON THE STREETS AND HIGHWAYS OF THIS STATE UNTIL PROPERLY REGISTERED.
THE VESSEL IDENTIFIED WILL NOT BE OPERATED ON THE WATERS OF THIS STATE UNTIL PROPERLY REGISTERED.
OTHER: (EXPLAIN) _________________________________________________________________________________________________________________________________________________________

12 APPLICATION ATTESTMENT AND SIGNATURES

I/WE PHYSICALLY INSPECTED THE ODOMETER/VIN AND FURTHER AGREE TO DEFEND THE TITLE AGAINST ALL CLAIMS. (More than one form HSMV 82040 may be used for additional signatures.)
UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE READ THE FOREGOING DOCUMENT AND THAT THE FACTS STATED IN IT ARE TRUE.

_________________________________________________________________________________________________ _________________________________________________________________________________________________
SIGNATURE OF APPLICANT (OWNER) Date SIGNATURE OF APPLICANT (CO-OWNER) Date

13 RELEASE OF SPOUSE OR HEIRS INTEREST

The undersigned person(s) state(s) as follows: That _________________________________________________________________________ died on _____________________________.

(Name of Deceased) (Date)
testate (with a will) intestate (without a will) and left the surviving heir(s) named below.
When applicable, the heir(s) (named below) certifies that the certificate of title is lost or destroyed.
UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE READ THE FOREGOING DOCUMENT AND THAT THE FACTS STATED IN IT ARE TRUE.
(More than one form HSMV 82040 may be used for additional signatures.)

Print or Type Name of Spouse, Co-owner or Heir(s) Signature of Spouse, Co-Owner or Heir(s)

________________________________________________________________________________ ________________________________________________________________________________

________________________________________________________________________________ ________________________________________________________________________________

________________________________________________________________________________ ________________________________________________________________________________
That at the time of death the decedent was owner of the motor vehicle, mobile home or vessel described in section 2 of this form. The person(s) signing above hereby releases all of his/her/their right, title, interest and claim as
heir(s) at law, legatee(s), devisee(s), or otherwise to the aforesaid motor vehicle, mobile home or vessel to:

Name of Applicant(s) (Print or Type)

RESIDENTS OF FLORIDA AND ALL VESSEL OWNERS, RESIDING IN FLORIDA OR OUT OF STATE, SHOULD SUBMIT THIS FORM AND ALL REQUIRED DOCUMENTATION TO
A LOCAL FLORIDA TAX COLLECTOR’S OFFICE OR THE FLORIDA TAX COLLECTOR'S OFFICE LOCATED IN THE APPLICANT'S COUNTY OF RESIDENCE FOR
PROCESSING.
Check your local phone book government pages or visit the following website for current mailing addresses: http://www.flhsmv.gov/offices/
www.flhsmv.gov
111
HSMV 82040 – REV. 06/12
SECTION2

Q8: Which proof of ownership document for a new vehicle is wrong?

A. MCO
B. Title
C. MSO

Q9: Once a vehicle is titled in Florida or anywhere for that matter, it is considered used.
A. True.
B. False.

Q10: Brands must be disclosed in writing prior to consummating the sale if it is….
A. Wholesale.
B. Retail.
C. Either.

Q11: Dealers are strongly urged to check odometer readings and associated paperwork to make sure the
odometer disclosure is accurate and consistent.
A. True.
B. False.

Q12: Once a lien has been recorded the title cannot be transferred without the lien being satisfied.
A. True.
B. False.

Q13: Title brands must be carried forward from title to title. All brands, except Long Term Lease, must be
disclosed in writing prior to consummating the sale at the…..
A. Retail level.
B. Wholesale level.
C. Both of the above.
D. Neither of the above.

Q14: If a new license plate is being secured for the purchaser, the dealer must secure from the
purchaser proof that personal injury protection (PIP) and property damage liability (PDL)
insurance coverage exists.
A. True.
B. False

112
 FIADA

Section 3

Tax Information
for Motor Vehicle
Dealers

113
 GT-400400
R. 07/12

Tax Information
for
Motor Vehicle Dealers

This publication was designed to be used as a training aid.

It should not be used as a reference to cite the Department’s position.
If legal advice or other expert assistance is required,
dealers should obtain the services of a tax professional.

114
TABLE OF CONTENTS
Section 1 Introduction ..............................................................................................................119
Section 2 Definitions .................................................................................................................1 20
Section 3 Motor Vehicle Dealers Responsibilities ................................................................121
Dealer Responsibilities
Refusing or Failure to Register
In-State Dealers
Out-of-State Dealers
Multiple Locations
Consolidated Returns
Section 4 Certificate of Registration .......................................................................................123
Display Requirement
Effective Date
How Used in Transactions
Florida Annual Resale Certificate for Sales Tax
Suggested Format of an Exemption Statement
Florida Consumer’s Certificate of Exemption
Section 5 Records .....................................................................................................................124
Records Required
Types of Records
Statute of Limitations
Accounting Systems
Transferee Liability
Section 6 Local Option Discretionary Sales Surtax ..............................................................125
Sales of Motor Vehicles
Surtax Cap of $5,000 on Tangible Personal Property (TPP)
Motor Vehicle Dealer Located In Surtax County
Residence of the Purchaser in Another County Imposing Surtax
Motor Vehicle Dealer Located in County Not Imposing Surtax
Leases of Motor Vehicles
Section 7 Tax Returns and Regulations .................................................................................126
Tax Due at Time of Sale
Tax May Not be Absorbed
Electronic Filing and Payment Requirements
Estimated Tax
Penalties & Interest
Collection Allowance (only with e-file and e-pay)
Forms to be Used for Tax Remittance
Consolidated Returns
Combined Returns (Prime Number or County Control)
Completing the Front of the DR-15 Sales and Use Tax Return
How to Complete the Back of the DR-15 Sales and Use Tax Return
How Does the Surtax Rate Apply to the CAP?
Methods for Computing Estimated Tax
Alternative Method for Estimated Sales Tax Payments
Calculating Estimated Tax Using the Alternative Method

115
Section 8 Collection and Computation ............................................................................... 136
Taxable Base
Applicable Tax Rate
Taxable Sales
Government Requirements Exempt from Tax
Rental Payments Taxable
Trade-in Allowance
Separate Sales Transactions
Dealer’s Discount
Manufacturer’s Rebate
Tax Calculation
Method for Motor Vehicle Dealers to Report Tax Collected on Out-of-State Sales
Out-of-State Sales Tax Rates
DR-15 Sales and Use Tax Return
Out-of-State Purchasers Residing in States with a Sales Tax Rate
Exempt Transactions
Sales for Resale
Sales for Exportation Out-of-Country
Sales to Motor Carriers
Sales to Exempt Entities
Leases to Governmental and Non-Profit Employees
Veterans Administration
Mobile Home Appurtenances
Mobile Home Lot Improvements
Service Warranties
Tax Due at Time of Sale
Repairs
Lubrication Services
Repairs to Tires
Repairs to Vehicles Held in Inventory for Sale
Insurance Claim Repairs
Repairs to Vehicles Used as Rentals
Wrecker Services
Car Wash Services
Replacement of Motor Vehicle (Lemon Law)
Section 9 Use Tax.................................................................................................................. 147
Dealers’ License Plates
Vehicles Not Held for Resale
Taxable Loaner Vehicles
Shop Overhead
Section 10 Repossessions, Bad Debts, and Refunds......................................................... 150
Repossessions
Bad Debts
Refunds and Credits

116
Section 11 Solid Waste Fees.................................................................................................... 152
Waste Tire & Lead-Acid Battery
Fees Imposed on the Seller - Rules 12A-12.001 and 12A-12.0011, F.A.C
Exempt Sales or Sales for Resale
Remittance of the Fees
Credits for Returns and Exchanges
Motor Vehicle Warranty Fee (Lemon Law)
Rental Car Surcharge- $2 per Day or Any Part of a Day
Registration
Remittance of the Surcharge
Guaranteed Automobile Protection Insurance (GAP)
Credit Card Discount Points
Section 12 Intangible Tax .........................................................................................................158
Vehicle Financing
Section 13 Documentary Stamp Tax .......................................................................................158
Documentary Stamp Tax
Section 14 Corporate Income Tax ...........................................................................................159
Section 15 Reemployment Tax ................................................................................................159
Reemployment Assistance Program
Definitions
Wages
Tax Rate
Tax Rate Calculation
Termination of Coverage
Claims for Benefits
Section 16 Miscellaneous Issues ............................................................................................162
Reports of Large Currency Transactions
How to Report
When to File
Where to File
Penalties
Assistance
Section 17 Automobile Dealership Audits ............................................................................163
Sales Issues
Purchase Issues
Commercial Rental Issues
Criminal Investigations

117
Publication Samples
At the end of this publication you will find samples of the following Department issued forms
that cannot be found on our Internet site:
DR-11N Certificate of Registration (Sample 1)
DR-14 Consumer’s Certificate of Exemption (Sample 2)
DR-16P Sales and Use Tax Direct Pay Permit (Sample 3)

The following documents may be found on our Forms and Publications web page:
DR-2X Sales Tax Rate Table.
DR-15DSS Discretionary Sales Surtax Information. (Prior year rates are available
along with current year rates).
DR-15SW Solid Waste and Surcharge Return.
DR-35 Motor Vehicle Warranty Fee Remittance Report.
DR-95B Schedule of Florida Sales or Use Tax Credits Claimed on Repossessed
Motor Vehicles.
DR-123 Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in
Another State.
DR-225 Documentary Stamp Tax Return for Registered Taxpayers’ Unrecorded
Documents.
DR-228 Documentary Stamp Tax Return for Non-Registered Taxpayers’
Unrecorded Documents,.
GT-800060 Annual Resale Certificate brochure for Sales Tax (includes Sample
Certificate).
UCT-6 Florida Department of Revenue Employer’s Quarterly Report,

The Tax Information Publication (TIP) for Motor Vehicle Sales Tax Rates by State is updated
annually every January. The new TIP for 2012 (and all previous TIPs for Motor Vehicle Sales
Tax Rates by State) can be found in our Revenue Law Library on our website under “Sales
and Use Tax”, then select “Tax Information Publications”.

Our website address is:

www.myflorida.com/dor

118
Section 1 Introduction

Purpose
Motor Vehicle Dealers are responsible for being familiar with the tax laws of Florida. This document
provides you a helpful reference guide to:
• Better understand your tax obligations.
• Collect, report, file, and pay Florida taxes timely and accurately.
• Avoid making filing and payment errors.
• Complete the front and back of your sales and use tax return (Form DR-15).

Chapters 212 and 213, Florida Statutes (F.S.)

Rule Chapter 12A-1.007, Florida Administrative Code (F.A.C.)
References
Chapters 212 and 213, F.S., and Rule 12A-1.007, F.A.C.
Be sure to access the Revenue Law Library and familiarize yourself with the Florida Statutes and
the Florida Administrative Code through the Department of Revenue's Internet address:
www.myflorida.com/dor or call or visit one of our service centers located throughout the state.
Resources
If you go to our “Taxes” Internet home page, you will find many resources under the Tax
Information Section. There are links to:
• All the Tax Information Publications (TIPs).
• Online Tutorials.
• An inventory of Taxpayer Education material.
Tutorials on sales and use tax can help you learn Florida tax laws at your own pace and when
it’s convenient for you. Below is a listing of the sales and use tax tutorials we offer:
• Overview of Sales and Use Tax for Business Owners - We recommend taking this tutorial
before you take the other sales and use tax tutorials.
• How to Navigate the Revenue Web Site to e-File and e-Pay Sales and Use Tax (Form DR-15).
• How to Complete Sales and Use Tax Returns.
• How to Estimate and Pay Sales and Use Tax.
• How to Calculate, Collect, and Report Your Local Discretionary Sales Surtax.
• Motor Vehicle Dealers: How to Calculate, Collect, and Report Sales Tax.
• How to enroll to e-file and e-pay your taxes.

Reemployment tax tutorials can help you understand your responsibilities as a Florida employer:
• Reemployment Tax Tutorial for Employers

If you select the Taxpayer Education link on our home page, you will find:
• Standard Industry Guides.
• Electronic file and pay information.

Our Forms and Publications page contains many industry-specific brochures on sales and use
tax. Each brochure relates to a specific business type.

Subscribe to our electronic publications to stay up-to-date on tax law changes and get
information to help you file your taxes accurately, efficiently, and on time.

Information and forms are available on our Internet site at: www.myflorida.com/dor

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To speak with a Department of Revenue Representative, call Taxpayer Services, Monday through
Friday, 8 a.m. to 7 p.m., ET, at 800-352-3671.
For a written reply to your tax questions, write to:
Taxpayer Services Mail Stop 3-2000
Florida Department of Revenue
5050 W Tennessee St
Tallahassee FL 32399-0112
Get the Latest Tax Information
Sign up to get e-mail notices automatically when we post:
• Tax Information Publications (TIPs)
• Facts on Tax, a quarterly publication.
• Proposed rules, notices of rule development workshops, and more.
Sign up at: www.myflorida.com/dor

Section 2 Definitions

Bracket System - A method of calculating the tax amount due on transactions that are a fractional
part of $1. All taxable transactions are taxable at the rate of 6 percent. Six percent is charged on
each $1 of price and the appropriate bracket charge is used to calculate tax on any fractional part
of $1.

Business activity (or opening) date - The date a business begins taxable business activity and is
required to begin collecting sales tax. This date also determines when the first collection period
begins.
Collection allowance – Compensation given only to registered dealers who e-file and e-pay. The
allowance is for properly accounting for, reporting, and remitting sales and use tax when the return
and payment are electronically filed on time. The collection allowance is 2.5 percent (.025) of the
first $1,200 of sales and use tax collected during the collection period, up to a maximum of $30.
You may donate your collection allowance to the Educational Enhancement Trust Fund. For more
information, see TIP #12A01-03.
Collection period - The calendar month or months that must be reported on a particular return,
whether or not any tax was collected.
Consumer - The purchaser, other than for purposes of resale, or the lessee of a motor vehicle
primarily used for personal, family, or household purposes; any person to whom such motor vehicle
is transferred for the same purposes during the duration of the Lemon Law rights period; and any
other person entitled by the terms of the warranty to enforce the obligations of the warranty.
Department - The Florida Department of Revenue.
E-File – Filing your taxes electronically using the Department’s secure website or by using software
purchased from a Department-approved vendor. A list of approved vendors is posted on our
website.
E-Pay – Paying your taxes electronically using the Department’s secure website or by using
software purchased from a Department-approved vendor. A list of approved vendors is posted on
our website. Electronic payments must be made at least one business day before each payment is
due. We provide a calendar of due dates on our website (Form DR-659).
Lessor - One who rents property to another. In the case of real estate, the lessor is also known as
the landlord.

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Motor Vehicle - An automobile, motorcycle, truck, trailer, semi-trailer, truck tractor and semi-trailer
combination, or any other vehicle operated on the roads of this state, used to transport persons or
property, and propelled by power other than muscular power. The term includes recreational
vehicles, such as motor homes and travel trailers.
Motor Vehicle Dealer - Any person who holds himself out as being engaged in the business of
selling or leasing motor vehicles, and recreational vehicles.
Person - Any individual, firm, co-partnership, joint venture, association, corporation, estate, trust,
business trust, receiver, syndicate, or other group or combination acting as a unit.
Retailer - Every person engaged in the business of making sales at retail or for distribution, or use,
or consumption, or storage to be used or consumed in this state.
Retail Sale - A sale to a consumer or any person for any purpose other than for resale in the form
of tangible personal property or services taxable under the laws of this state, and includes all such
transactions that may be made in lieu of retail sales or sales at retail. The sale of materials for use
in repairing motor vehicles, airplanes, or boats, to a registered repair dealer is not subject to sales
and use tax when the materials are incorporated into and sold as part of the repair. The sale of
such materials to a repair dealer is considered an exempt purchase for resale, even though each
and every material (e.g., nuts and bolts) is not separately invoiced on the repair invoice. A repair
dealer needs to extend a valid Annual Resale Certificate to make the purchase tax exempt.
Sales Tax – A state tax on the sale or rental of a taxable item or service. Sales tax is added to the
cost of the taxable item or service and generally collected from the purchaser at the time of sale.
Florida’s “general” statewide sales tax rate is 6 percent (6%). However, most Florida counties also
levy a local discretionary sales surtax that is added to the statewide rate of 6 percent. The person
or business, selling or renting the taxable item or service, collects the sales tax as an agent for the
state. They are responsible for:
• Registering with the state
• Reporting the tax
• Paying the tax

Note: Only the first $5,000 on a single sale or rental of a taxable item is subject to discretionary
sales surtax.
State Fiscal Year - The 12-month period that the state uses for bookkeeping purposes. The state
fiscal year begins on July 1 and ends on June 30.
Tangible Personal Property - Personal property which may be seen, weighed, measured,
touched, or is in any manner perceptible to the senses, including electric power or energy, boats,
motor vehicles, mobile homes, aircraft, and all other types of vehicles as defined in Chapter
320, F.S.

Use Tax - Tax imposed on the use, consumption, distribution, and storage of tangible personal
property imported or caused to be imported into this state to be used or consumed in this state.
This tax also includes “taxable items” originally purchased untaxed for resale, which are then later
used by the business, business owner, or their employees.
The two taxes, sales tax and use tax, compliment each other, and if an item is specifically exempt
from sales tax, it is also exempt from use tax.

Section 3 Motor Vehicle Dealers Responsibilities

Every dealer, who wishes to do business in Florida, selling and/or leasing motor vehicles or
recreational vehicles, is required to register with the Florida Department of Revenue.

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Dealer Responsibilities
As a registered dealer, you act as an agent of the state and are responsible for:
• Collecting sales tax on each taxable transaction.
• Paying use tax on items used by the business that were purchased tax-exempt or removed
from inventory and not resold.
• Sending the tax you have collected and the use tax owed along with your completed Sales
and Use Tax Return (Form DR-15) to the Florida Department of Revenue.
• Keeping complete and accurate records on all sales and purchases.
Refusing or Failure to Register
The Department of Revenue is authorized by Florida Statutes to impose a registration fee of $100
on any dealer who refuses or fails to register prior to opening a business. The $100 registration fee
may be waived if the Department finds that the oversight was not intentional.
In-State Dealers
A dealer located in Florida may obtain a Certificate of Registration (Form DR-11) and an Annual
Resale Certificate (Form DR-13) by registering with the Department online or by completing the
Application to Collect and/or Report Tax in Florida (Form DR-1). This application may be completed
online at www.myflorida.com/dor. Our online application guides you through an interview process
to help you complete the application and determine your tax obligations. If you do not have Internet
access, you can complete a paper Application to Collect and/or Report Tax in Florida (Form DR-1).
Forms can be ordered by going to our Internet site or by calling Taxpayer Services.
Out-of-State Dealers
A dealer who does NOT have a physical location in Florida but who conducts business in Florida
must also obtain a Certificate of Registration (Form DR-11) and an Annual Resale Certificate (Form
DR-13). They should follow the same application process outlined above for the in-state dealers.
Multiple Locations
Each business location in Florida must obtain a separate Certificate of Registration
(Form DR-11) before starting a business in Florida.
Consolidated Returns
A dealer may request consolidated sales and use tax filing by completing the Application for
Consolidated Sales & Use Tax Registration (Form DR-1CON). There is no fee assessed for filing a
consolidated return. To be eligible for consolidated filing, the following are required:
• All business locations must be owned by the same entity (SSN/FEIN).
• Must have two or more locations (need not be in same county).
• Each business location must have a separate certificate number.
• Maintain all records at one central location.
The Application for Consolidated Sales & Use Tax Registration (Form DR-1CON) may be faxed to
850-410-2816 or mailed to Account Management, Florida Department of Revenue, Mail Stop 1-
5000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0156 or to any of our Service
Centers located throughout the state.
Once the tax number is issued, the consolidated filing account number will begin with 80. The
consolidated account will receive an Annual Resale Certificate for Consolidated Accounts
(Form DR-13C) to be used for purchasing for resale.
Consolidated filers must file and pay their taxes electronically. For more information on all your
electronic options, read the online brochure Filing and Paying Your Taxes Electronically
(GT-800001). You can also call Taxpayer Services if you have questions.

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For information about filing consolidated sales tax returns, call the Consolidated Return
Reconciliation Unit at 850-717-6636.

Section 4 Certificate of Registration

When a dealer has completed the Application to Collect and/or Report Tax in Florida (Form DR-1),
a sales tax Certificate of Registration (Form DR-11), and an Annual Resale Certificate (Form
DR-13), will be issued.

Certificate of Registration
Your Certificate of Registration (Form DR-11) contains your:
• Business name and location
• Registration effective date
• Opening date
• Filing frequency
• Certificate number (your official sales and use tax registration number)
The sales and use tax registration number identifies the county where the dealer is located and
paying tax.
47-8999999999-1

Check Digit (Always 1 digit)

Unique Sales Tax Number (Always 10 digits)
County Code (Always 2 digits)
NOTE: Your business partner (BP) number is printed on the back of your Certificate of Registration
(Form DR-11) and should be used when communicating with the Department.
Display Requirement
Florida law requires that you post your Certificate of Registration (Form DR-11) at your business
location in a conspicuous place. It is important that your customers see your Certificate of
Registration (Form DR-11) and know that you are authorized to collect Florida sales tax from them.
Effective Date
The Certificate of Registration (Form DR-11) effective date is the date your Application to Collect
and/or Report Tax in Florida (Form DR-1), is hand-delivered, mailed (date of postmark), or
electronically transmitted to the Florida Department of Revenue.
How Used in Transactions
Upon approval of the Application to Collect and/or Report Tax in Florida (Form DR-1), a motor
vehicle dealer may purchase vehicles for resale without paying sales or use tax. The dealer
purchasing the motor vehicles for resale extends a signed copy of their current Annual Resale
Certificate (Form DR-13) to the selling dealer instead of paying sales or use tax.
Florida Annual Resale Certificate for Sales Tax
As an active registered dealer with the Department, you are provided with an Annual Resale
Certificate (Form DR-13), to make tax-exempt purchases or rentals of property or services for
resale. You must submit a signed copy of your Annual Resale Certificate to a seller when making
purchases or rentals of property or services that you intend to resell or re-rent as part of your
business. Do not use your Annual Resale Certificate to buy office equipment, computers, or other
supplies used by your business operation.

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It is your duty as a dealer to collect and pay the applicable amount of sales and use tax and
discretionary sales surtax from your customers when you finally resell or re-rent the property or
service at retail. There is a DOR brochure that will help you determine what you may buy or rent
tax-exempt for resale: Annual Resale Certificate for Sales Tax (GT-800060).

The selling dealer must keep a signed copy of the purchaser's Annual Resale Certificate (Form
DR-13) each year, on file in order to support the exempt sale and until sales tax may no longer be
assessed under the statute of limitations. (For your records, keep all signed Annual Resale
Certificates from the previous three years.)

If the purchaser does not present a current annual resale certificate but knows his or her sales tax
certificate number, the selling dealer can obtain a transaction resale authorization number through
an automated toll-free verification system. The nationwide toll-free number is:877-357-3725 or
877 FL RESALE.

If you purchase or rent items which will be used in your business, and the items will not be sold or
re-rented, the Annual Resale Certificate (Form DR-13) should not be used. A Certificate of
Registration (Form DR-11) that has been revoked or is inactive may not be used to purchase tax-
exempt items. Remember, there are criminal and civil penalties for the fraudulent use of the Annual
Resale Certificate.

Suggested Format of an Exemption Statement

For vehicles sold in Florida to an unregistered out-of-state dealer for resale, an affidavit and
sufficient documentation to verify the out-of-state or out-of-country dealer as suggested in Rule
12A-1.007(6)(b), F.A.C., will be accepted. The statement should be notarized by a State of Florida
Notary Public.
Florida Consumer’s Certificate of Exemption
If the sale is to an exempt organization, the dealer must obtain a copy of the purchaser’s current
Florida Consumer’s Certificate of Exemption (Form DR-14).
A selling dealer is required to obtain only one exemption certificate from each customer having a
Certificate of Exemption. A customer presents a Florida Consumer’s Certificate of Exemption
(Form DR-14) at the time of their first exempt purchase. Each and every subsequent exempt
transaction can be covered by the same exemption certificate presented at the initial transaction.
The selling dealer may contact the Department to verify the specific exemption.
Sales made to governmental units that hold a current Florida Consumer’s Certificate of Exemption
(Form DR-14) must include proper documentation with the suggested format in Rule
12A-1.038(4)(b), F.A.C. The United States Government is NOT required to hold a Florida
Consumer’s Certificate of Exemption (Form DR-14). In this case, the dealer must document that the
sales were made to the Federal Government; which may include a valid purchase order, a check
issued in payment by the Federal Government, or other similar documentation.

Section 5 Records

Records Required
Types of Records
Complete and accurate records of all sales and purchases, whether taxable or not, must be kept.
These records include, but are not limited to:
• Electronic files
• General ledgers and journals
• Cash receipts and disbursement journals, purchase and sales journals, register tapes,
invoices, and statements

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Dealers should keep copies of sales and use tax returns, cancelled sales tax payment checks,
proof of electronic filing and payments, and any documentation needed to verify the amounts
entered on the tax returns. If your business is incorporated or organized as a partnership, copies of
your Florida corporate income tax returns (Florida Forms F-1120 or F-1120A) should also be kept.
Statute of Limitations
Records supporting all transactions in the collection period and proof of payments must be kept for
at least three years from the date the return was filed or was required to be filed, whichever is later.
All records and documents must be made available to the Florida Department of Revenue upon
request. The Department may audit for periods longer than three years if you fail to file a return or
file a substantially incorrect return or underpayment. If you fail to produce records or submit a
grossly incorrect or fraudulent report, you could be subject to criminal or civil penalties.

Accounting Systems
Most motor vehicle dealers use a standard, computerized accounting system. The standard system
generates sales tax invoices, general ledgers, inventory reports, requests, and sales journals. Each
sale is accounted for and inventory is reduced with each sale made and increases with each
purchase made.
Transferee Liability – Section (s.) 212.10, F.S.
When a new owner sells a business or stock of goods, a receipt or certificate must be issued by the
Florida Department of Revenue indicating that taxes have been paid or that no tax is due after an
audit has been performed on the selling dealer’s books and records. The Department is authorized
to use private auditors to perform the audit and charge the audit to the person requesting the audit.
Any receipt or certificate from the Department does not, without an audit of the selling dealer’s
books and records by the Department, guarantee that there is not a tax deficiency owed the state
from the operation of the seller’s business.

Section 6 Discretionary Sales Surtax (DSS)

Most Florida counties levy a local discretionary sales surtax on transactions subject to sales and
use tax. The discretionary sales surtax (also referred to as a local option tax) is a county-imposed
tax. Sales tax dealers must collect local discretionary sales surtax along with the 6 percent state
sales tax and pay both taxes to the Department.
Persons engaged in the business of selling or renting motor vehicles are required to charge, collect,
and pay the applicable local discretionary sales surtax on their sales or rentals of motor vehicles.
Any sale or rental of a motor vehicle that is subject to the state tax imposed on sales and rentals is
subject to any applicable discretionary sales surtax.
In Florida, motor vehicles must be registered. Motor vehicle short-term rentals are subject to the
applicable surtax rate in effect for the county where the lessor (motor vehicle owner) is located,
regardless of where the vehicle is driven. Long-term leases of motor vehicles (i.e., 1-3 years) are
titled in the name of the lessor, registered in the name of the person leasing the vehicle, and subject
to the applicable surtax rate in effect for the county where the vehicle is registered and driven.
Sales of Motor Vehicles
A transaction involving a motor vehicle shall be deemed to have occurred in a county imposing
surtax (for the purposes of applying the surtax) when the residence address of the purchaser
(buyer) shown on the registration or title document is in a surtax county.

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 Example: A resident in a county with a .5% DSS rate purchases a new motor vehicle in a county
with a 1.5% DSS rate. The purchaser registers the vehicle in a .5% DSS county. The selling
dealer will collect the DSS rate of .5%

Surtax Cap $5,000 on Tangible Personal Property (TPP)

The surtax only applies to the first $5,000 (cap) of the selling price of each motor vehicle and does
not apply to the amount over $5,000.
The $5,000 limitation does not apply to commercial rentals or transient rentals, services, or
service warranties.
How to compute: Total selling price of motor vehicle ............................................... $ 27,875.92
Tax at 6 percent on total selling price .......................................... $ 1,672.56
$5,000 cap on surtax at .5 percent .............................................. $ 25.00
(Sold in a county with a 1.5 percent Surtax, but the motor vehicle
will be registered in county with a .5 percent surtax)
Total tax due to the state ............................................................ $ 1,697.56
Motor Vehicle Dealers and Surtax
Dealers report the surtax they collect on Form DR-15 and pay the surtax directly to the Department.
The surtax rate is determined by the purchaser’s residence and the respective surtax rate for that
county, not the surtax rate for the county the dealer is located in. For example, when a dealer is
located in a county which does NOT impose surtax and the residence address of the purchaser
shown on the registration or title document is in a county imposing surtax, the dealer must collect
the surtax from the purchaser at the rate imposed by the purchaser’s county. Form DR-15-DSS
lists the individual county rates and can be found on the Department’s website.
Leases of Motor Vehicles
For purposes of applying the surtax, a transaction involving the lease of a motor vehicle is deemed
to have occurred in a county imposing surtax when the address on the registration or title document
is in a county imposing surtax.
The surtax is applicable only to the first $5,000 of each rental payment contractually obligated to be
paid on the lease of each motor vehicle.

Section 7 Tax Returns and Regulations

Tax Due at Time of Sale

The full amount of sales tax on cash sales, credit sales, installment sales, or sales made on any
kind of deferred payment plan is due at the time of the transaction.
Sales and use tax returns and payments are due on the 1st day of the month and late after the 20th
day of the month following each collection period. If the 20th falls on a Saturday, Sunday, state or
federal holiday, your return must be postmarked or hand-delivered on the first business day
following the 20th. You must file a tax return for each collection period, even if no tax is due.

Example: "Buy Here/Pay Here", motor vehicle dealer, sells a motor vehicle on October 31.
The selling dealer tells the purchaser they do not have to make any payments until
January 1. The sales tax on this transaction is due on the October return, filed in November.
This dealer is also subject to documentary stamp tax on the promise to pay note signed by
the purchaser.

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Tax May Not be Absorbed
Dealers or persons selling or renting motor vehicles or recreational vehicles may not advertise or
indicate in any manner that they will absorb all or any part of the tax. The dealer may NOT indicate
that the purchaser will be relieved of any payment of the tax. The tax must be added to the sales or
rental price, and the amount of tax must be separately stated as sales tax on any charge ticket,
sales slip, invoice, or any other evidence of a sale or rental.
Electronic Filing and Payment Requirements
The Department offers the convenience of using our free and secure Internet site to file and pay
sales and use tax, or you may purchase software from an approved vendor to file and pay
electronically. If you would like to voluntarily file and pay taxes electronically, you may do so.
However, if you paid $20,000 or more in sales and use tax during the preceding state fiscal year
(July 1 - June 30), you are required to file and pay taxes electronically for the current calendar
year. Also, as of July 1, 2012, you must e-file and e-pay timely to receive a collection allowance.
Estimated Tax
If you paid $200,000 or more sales and use tax (excluding any discretionary sales surtax) on
returns you filed during the most recent fiscal year (July 1 through June 30), you must make an
estimated sales tax payment every month, starting with your December return due January
1. Do not pay estimated tax if this is your final return. If you have questions about estimated
tax, call Taxpayer Services.
Penalties
Failure to Timely File Return and Pay Tax
• 10 percent of the amount due shown on Line 10.
• A minimum of $50 if 10 percent of Line 10 is less than $50.
The rate applies to all sales and use tax filers. If your return or payment is late, include the penalty
on Line 12 of your return. The minimum penalty of $50 will apply even if you are filing a late “zero
tax due” return.
Penalty for Underpayment of Estimated Tax - If you underpaid your last month’s estimated
tax on Line 9, a “specific” penalty of 10 percent is due on the underpaid amount.
Filing a False or Fraudulent Return or Attempting to Evade Tax - In addition to the
delinquent penalty, any dealer who knowingly fails to file six consecutive tax returns, and who has
willful intent to evade tax, commits a third-degree felony. The penalty shall be 100 percent of the
tax or fee, and the taxpayer is subject to a criminal conviction based on the amount of unreported
taxes or fees. If the amount is less than $300, the first offense will be a second-degree
misdemeanor. The second offense will be a first-degree misdemeanor and the third and
subsequent offenses will be third-degree felonies. If the amount is $300 or more but less than
$20,000, the offense is a third-degree felony. If the amount is $20,000 but less than $100,000, the
offense is a second-degree felony. If the total is $100,000 or more, the offense is a first-degree
felony.
Failure to Collect/Pay Tax or Attempting to Evade/Defeat Tax - In addition to all other
penalties, any dealer who willfully fails to collect, truthfully account for, and properly pay any tax, or
who willfully attempts in any manner to evade or defeat such tax or tax payment shall be liable for a
penalty equal to twice the amount of the total tax or 200 percent of the amount which was evaded
or not paid, and commits a third-degree felony.
Any officer or director of a corporation who has administrative control over the collection and
payment of any tax and who willfully directs any employee of the corporation to fail to collect,
truthfully account for, properly pay, evade, or defeat such tax shall be liable for a penalty.

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The penalty shall be equal to twice the amount of the total tax or 200 percent of the amount which
was evaded, not accounted for, or not paid, and commits a third-degree felony.

Interest
A floating rate of interest applies to underpayments and late payments of tax. We update the rate
January 1 and July 1 of each year by using the formula established in s. 213.235, F. S. To obtain
interest rates, visit our Internet site at www.myflorida.com/dor.
Collection Allowance
As of July 1, 2012, you must e-file and e-pay timely to receive a collection allowance. The
collection allowance is 2.5% (.025) of the first $1,200 of tax due, not to exceed $30.
Example: Total tax due $1,000
Collection Allowance @ 2.5% $ - 25
Total due to DOR $ 975
Only taxpayers who e-file and e-pay may donate their collection allowance to the Educational
Enhancement Trust Fund. This fund is used to purchase up-to-date technology for classrooms in
local school districts in Florida. A box is provided on the electronic sales and use tax return to
indicate they wish to donate their collection allowance. You must make this choice on each original
and timely filed electronic return. You cannot make this choice after your electronic return is filed.
For more information, see TIP #12A01-03.
Forms to be Used for Tax Remittance

DR-15 The Department has designed the Sales and Use Tax Return (Forms DR-15 or DR-
15CS) as the form to be used in the payment of sales and/or use tax.
DR-35 Dealers may pay the $2.00 lemon law fee directly to the Florida Department of
Revenue on the Motor Vehicle Warranty Fee Remittance Report (Form DR-35), only
for sales to non-residents, when the vehicle will not be registered or titled in this
state.
DR-7 Dealers who file under a consolidated account number must file a DR-7 along with
their Consolidated Sales and Use Tax Return (Form DR-15CON ), or a DOR
approved format, showing the information for each active account number in the
consolidated group.
DR-15SW The Solid Waste and Surcharge Return (Forms DR-15SW or DR-15SWCS) is used
to pay the waste tire fee, the lead-acid battery fee, dry-cleaning, and the rental car
surcharge.
Consolidated Returns (Forms DR-15CON and DR-7)
Dealers operating more than one place of business may file a consolidated tax return. The
consolidated return provides the monthly business activity for each location. The collection
allowance is 2.5 percent (.025) of the first $1,200 of the amount due on Line 10, not to exceed $30
for each DR-7 location.
If you electronically file (e-file) your return and electronically pay (e-pay) tax timely, you are entitled
to receive a collection allowance. The collection allowance is 2.5% (.025) of the first $1,200 of the
Amount Due (Line 10), not to exceed $30 on each DR-7 return.
Combined Returns (Prime Number or County Control)
A dealer filing a combined return for multiple locations in the same county can file a single return
using their sales and use tax number. The dealer is entitled to one collection allowance because
they are filing one return if they file and pay electronically.

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The maximum amount of collection allowance authorized for any filing period for a combined return
is $30.

Completing the Front of the DR-15 Sales and Use Tax Return

LINE A - Sales/Services - “Sales means the total of all wholesale and retail transactions.”
Column 1 Gross Sales - Enter the total amount of gross sales. Do not include tax collected in this
amount.
Column 2 Exempt Sales - Enter total amount of tax-exempt sales included in Line A, Column 1. Enter
zero, if none. Tax exempt sales include, but are not limited to, sales for resale, sales of items
specifically exempt, and sales to exempt organizations.
Column 3 Taxable Amount - Subtract total Exempt Sales from the Gross Sales and enter the taxable
amount. If you report sales exempt from discretionary sales surtax, complete Lines 15(a) and
15(b) on the back of the return.
Column 4 Tax Collected - Enter the actual tax collected including any discretionary sales surtax.
Report all discretionary sales surtax collected on Line 15(d) on the back of the return.

LINE B - Taxable Purchases – Use Tax, Columns 3 – 4

Line B - Taxable Purchases – “Use Tax” is owed on taxable purchases for goods or services
you have consumed but were not taxed by your suppliers and not purchased for resale (e.g.,
from catalogs, the Internet, or local or out-of-state vendors), and taxable items originally purchased
untaxed for resale but later used or consumed by the business, business owner, or employees.
Column 1 Gross Sales - Not Applicable
Column 2 Exempt Sales - Not Applicable

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Column 3 Taxable Amount – Enter the total amount of purchases used or consumed that were not
taxed by suppliers and are not for resale.
Column 4 Tax Collected - Enter the total amount of use tax owed, including discretionary sales surtax.
Report all discretionary sales surtax owed on Line 15(d) on the back of the return.

LINE C - Commercial Rentals, Columns 1 – 4

Commercial rentals include the business of renting, leasing, letting, or the granting of a license to
use or occupy any real property. Tax is due on the total consideration charged for such use,
including but not limited to ad valorem taxes paid by the tenant on behalf of the lessor, unless
specifically exempt under s. 212.031, F. S.

Rentals, leases, and licenses to use or occupy real property by related “persons” as defined in
s. 212.02(12), F.S., are also considered commercial rentals and therefore subject to sales tax.
Examples include but are not limited to: a parent corporation to subsidiaries, an individual or
shareholder to a corporation, or when a landlord/tenant relationship is exhibited and any
consideration is exchanged for the right of occupancy.

Column 1 Gross Sales - Enter the total amount of commercial rentals. Do not include tax collected in
this amount.
Column 2 Exempt Sales - Enter the total amount of tax-exempt commercial rentals included in Line C,
Column 1. Enter zero, if none.
Column 3 Taxable Amount - Subtract the total exempt commercial rentals from the total gross
commercial rentals and enter the taxable amount.
Column 4 Tax Collected - Enter the total amount of tax collected, including discretionary sales surtax.
Report all discretionary sales surtax collected on Line 15(d) on the back of the return.
LINE D - Transient Rentals, Columns 1 – 4

Column 1 Gross Sales - Enter the total amount charged for transient rentals only. Do not include tax
collected in this amount.
Column 2 Exempt Sales - Enter the total amount of tax-exempt transient rentals included in Line D,
Column 1. Enter zero, if none.
Column 3 Taxable Amount - Subtract the exempt transient rentals from total gross transient rentals
and enter the taxable amount.
Column 4 Tax Collected - Enter the total amount of tax collected on transient rentals, including
discretionary sales surtax. Report all discretionary sales surtax collected on Line 15(d) on the
back of the return.

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LINE E - Food & Beverage Vending, Columns 1- 4

Column 1 Gross Sales - Operators of food and beverage vending machines should compute their
gross sales by dividing the total receipts from the machine(s) by the appropriate food and
beverage divisor for the county where the machine(s) is located.

Sales/Surtax Food & Beverage Example

Rate Divisor The gross receipts from a soft drink machine in a county with a combined
sales and surtax rate of 6.5 percent (6.5%) total $100. Gross receipts divided
by the food and beverage divisor for the 6.5 percent (6.5%) rate equals gross
6.0% 1.0645
sales. Gross receipts minus gross sales equals tax due. Gross sales
6.25% 1.06655
multiplied by the surtax rate equals discretionary sales surtax collected.
6.5% 1.0686
6.75% 1.0706 $100 ÷ 1.0686 = $93.58 (gross sales)
7.0% 1.0726 $100 – $93.58 = $6.42 (tax due, including discretionary sales surtax)
7.25% 1.07465 $93.58 x .005 = $.47 [discretionary sales surtax portion to be reported
7.5% 1.0767 on Line 15(d)]
7.75% 1.0788
8.0% 1.0808

Column 2 Exempt Sales - Enter all tax-exempt sales. If there are none, enter zero.
Column 3 Taxable Amount - Enter the amount computed as explained in the example above.
Column 4 Tax Collected - Enter the total amount of tax collected, including discretionary sales surtax
computed as explained in the example above.

Line 5 Total Amount of Tax Collected - Add all the amounts in Column 4, Lines A through E, and
enter the total amount of Tax Collected. If discretionary sales surtax was collected, it must be
included in this amount.
Line 6 Less Lawful Deductions – Enter the total amount of all allowable tax deductions. Do not
report sales tax credits on this line (see Line 8 instructions).

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Lawful deductions include tax refunded by you to customers because of returned goods or
allowances for damaged merchandise, tax paid by the motor vehicle dealer on purchases of goods
intended for use or consumption but resold instead, enterprise zone job credits, and any other
deductions allowed by law.
• Do not include documentation with your return. Documentation to support lawful deductions
may be requested later.
• If you are claiming enterprise zone jobs credits, you must complete Line 16, and include this
amount on Line 6.
Note: The amount on Line 6 cannot exceed the amount on Line 5. Claim any remaining balance on
Line 6 of your next tax return.
Line 7 Total Tax Due - Subtract Line 6 from Line 5 and enter the amount. If negative, enter zero (0).
Line 8 Less Estimated Tax Paid/DOR Credit Memo(s) - Enter the total amount of estimated tax
paid last month and any sales credit memo issued by the Florida Department of Revenue
(DOR). If the DOR credit memo(s) exceeds the total tax due on line 7, claim the remaining
credit memo balance on Line 8 of your next return. If this is your final return, contact the
Department to request an Application for Refund (Form DR-26S).
Line 9 Plus Estimated Tax Due Current Month - Enter the total amount of estimated taxes due,
calculated for the current month using one of three methods. See page 18. If the dealer is not
required to make estimated tax payments, skip this line.
Line 10 Amount Due - Subtract the amount on Line 8 from Line 7. Add the amount on Line 9. Enter
the result on Line 10. The amount entered on Line 10 cannot be negative. If this calculation
results in a negative amount, contact Taxpayer Services.
Line 11 Less Collection Allowance - As of July 1, 2012, you must e-file and e-pay timely to receive
a collection allowance. The collection allowance is 2.5% (.025) of the first $1,200 of the tax
due, not to exceed $30. You cannot take the collection allowance if you are using paper to
file.
Line 12 Plus Penalty - Penalty for Late Returns or Payments
The penalty is either:
• 10 percent of the amount due shown on Line 10.
• A minimum of $50 if 10 percent of Line 10 is less than $50.
If your return or payment is late, include the penalty on Line 12 of your return. The minimum penalty
of $50 will apply even if you are filing a late “zero tax due” return.
Penalty for Underpayment of Estimated Tax
If you underpaid your last month’s estimated tax on Line 9, a “specific” penalty of 10 percent is
due on the underpaid amount. We will send you a notice of additional tax due.
Line 13 Plus Interest - If your payment is late, interest is owed on the amount due (Line 10). Florida
law provides a floating rate of interest for late payments of taxes and fees due, including
discretionary sales surtax. The floating rate of interest is established using the formula in s.
213.235, F.S., and is updated on January 1 and July 1 each year.
Line 14 Amount Due with Return - If your return and payment are filed on time, subtract Line 11
from Line 10 and enter the amount on Line 14. If your return or payment is late, add lines 12
and 13 to Line 10 and enter the amount on Line 14. Line 14 is the amount you owe, including
discretionary sales surtax.

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How to Complete the Back of the DR-15 Sales and Use Tax Return
Lines 15(a) – 15(d) – Discretionary Sales Surtax (DSS)
Line 15(a) Exempt Amount of Items Over $5,000 - Enter the amount in excess of $5,000 for
any single taxable item of tangible personal property sold or purchased for more than
$5,000. Example: If a motor vehicle is sold for $7,000, enter $2,000 (the amount over
$5,000) on Line 15(a). Remember, the $5,000 limitation does not apply to rentals of
real property, transient rentals, services, or service agreements.
Line 15(b) Other Taxable Amounts in Column 3 NOT Subject to Surtax - Enter the amount
of taxable sales or purchases included in Column 3 that are not subject to
discretionary sales surtax.
Line 15(c) Amounts Subject to Surtax at a Rate Different Than Your County Surtax Rate -
Enter the taxable amounts from Column 3 for which you collected a different county
discretionary sales surtax rate.
Line 15(d) Total Amount of Discretionary Sales Surtax Collected - Enter the total amount of
discretionary sales surtax collected on Line 15(d). Do not include state sales tax in
this amount.

Example: During the month a car dealer sold six cars. The dealer is located in a county
imposing a 1 percent discretionary sales surtax. The total of each sale is summarized below:
Tax Exempt amount Surtax County where MV
Sales Price Collected over $5,000 Collected will be registered

Sale 1 $10,000 $637.50 $ 5,000 $37.50 Surtax county (.75%)

Sale 2 $20,000 $1,225 $15,000 $ 25 Surtax county (.5%)

Sale 3 $25,000 $1,550 $20,000 $ 50 Surtax county (1%)
Sale 4 $ 6,000 $ 410 $ 1,000 $ 50 Surtax county (1%)
Sale 5 $22,000 $1,395 $17,000 $ 75 Surtax county (1.5%)
Sale 6 $ 7,000 $ 420 N/A N/A Non-Surtax
$90,000 $5,637.50 $58,000 $237.50

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How Does the Surtax Rate Apply to the $5,000 cap on the collection of DSS?
On a sale of tangible personal property of $5,000, or more, if the surtax rate was .5 percent (.005),
the surtax would be $25.00. If the surtax rate was 1.5 percent (.015), the surtax would be $75.
Line 15(a) Exempt Amounts over $5,000 ......................................................... = $ 58,000.00
Line 15(b) Other Amounts in Column 3 NOT subject to Surtax ........................ = $ 7,000.00
Line 15(c) Amount Subject to Surtax
at a Rate Different than Your County Surtax Rate........................... = $ 15,000.00
Line 15(d) Total Surtax Amounts Collected...................................................... = $ 237.50

Other items on the back of the DR-15 return.

Line 16 Total Enterprise Zone Jobs Credits - Enter the total of all approved enterprise
zone jobs credits on Line 16.
Line 17 Taxable Sales/Untaxed Purchases of Electric Power or Energy - Enter the total
taxable amount of sales or purchases of electric power or energy subject to the 7
percent rate. If the sale or purchase of electric power or energy occurred in a county
that imposes a discretionary sales surtax, the tax rate would be 7 percent plus the
applicable discretionary sales surtax rate.
Line 18 Taxable Sales/Untaxed Purchases of Dyed Diesel Fuel - Enter the total amount of
dyed diesel fuel sales or purchases (subject to sales or use tax) used in self-
propelled off-road equipment, including vessels. The discretionary sales surtax, if
applicable, must be included on the front of the return on Line A, Column 4.
Line 19 Taxable Sales from Amusement Machines - Enter the amount of taxable sales
from amusement machines.
Three Methods for Computing Estimated Tax
The percentage factor for calculating estimated tax is 60 %. Your estimated tax liability is based
only on Florida sales and use tax due (Form DR-15, Line 7, Total Tax Due minus discretionary

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sales surtax). If you incorrectly calculate or forget to enter your estimated tax, you cannot amend
your return. Compute your estimated tax liability by one of the following methods.

Method 1 – Average Tax Liability

Calculate 60% of your average sales tax collected for the months during the previous
calendar year that you reported taxable transactions.
Example: When completing your December return, calculate your average sales tax
collections for the entire prior calendar year. To calculate your average, complete the
following steps:
Step 1 Review all of your sales tax returns filed for the calendar year.
Step 2 Add together the amounts from Line 7 (minus any discretionary sales surtax) from
each return.
Step 3 Divide the total of all Line 7 amounts by the number of returns filed with tax due on
Line 7 to compute the monthly average sales tax collected.
Step 4 Multiply your monthly average sales tax collected by 60%.
Step 5 Enter the amount determined in Step 4 on Line 9 of each return due the following
year. Beginning with your December return due January 1.
Method 2 – Current Month/Previous Year

Calculate 60% of your sales tax collected for the same month of the previous calendar year.
Example: When completing your December return, multiply the amount on Line you’re your
January return for the same calendar year (less discretionary sales surtax) by 60% .
Enter that amount on Line 9.
Method 3 – Current Month

Calculate 60% of the tax collected for the next month’s return.
Example: When completing your December return, your estimated tax liability is 60% of what
you will collect and report (minus discretionary sales surtax) on your January return.
Enter that amount on Line 9.
Note: If you correctly calculate your estimated tax using one of the above methods, you will
not be assessed a penalty for underpayment of estimated tax.
Alternative Method for Estimated Sales Tax Payments
Boat, motor vehicle, and aircraft dealers may use an alternative method to calculate their estimated
sales tax.
To qualify for the alternative estimated sales tax method, a dealer must have made at least one
sale of a boat, motor vehicle, or aircraft with a selling price of $200,000 or more in the previous
state fiscal year. The state fiscal year is from July 1 through June 30.
Dealers must apply before October 1st each year and be approved by the Department to use this
alternative method.
The Boat, Motor Vehicle, or Aircraft Dealers Application for Special Estimation of Taxes (Form
DR-300400) may be obtained from our Internet site at www.myflorida.com/dor. This form must
be filed on or before October 1st each year.

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Calculating Estimated Tax Using the Alternative Method
In addition to filing the Sales and Use Tax Return (Form DR-15), dealers approved to use the
alternative method will be required to:
• Pay estimated tax every month based on 60 percent (Method 1) of their average tax liability
for all sales, excluding the sale of each boat, aircraft, or motor vehicle with a sales price of
$200,000 or more during the previous state fiscal year. Special Note: If approved to use
the alternative method described above, dealers will be required to pay estimated tax
using ONLY this method for each month of the entire calendar year.
• Pay the sales tax for each sale of a boat, motor vehicle, or aircraft with a sales price of
$200,000 or more, by electronic funds transfer (EFT) initiated on the date of the sale.
• Submit a check with a Sales and Use Tax Return (Form DR-15) postmarked on the date of
the sale.
Calculation Example:
An RV dealer reported taxable sales in the previous state fiscal year of $3,000,000. Three RVs
were sold for more than $200,000 each for a total of $750,000. In this example for calculating
estimated tax, the net sales were $2,250,000 for the previous state fiscal year.

Alternative Estimated Tax Method

Line A -Taxable sales prior fiscal year $3,000,000
Line B - Less (-) total of all individual sales of $200,000 or more <$ 750,000>
Line C - Net sales $2,250,000
Line D -Total tax due (6% of Line C) $ 135,000
Line E - Divide the amount on Line D by 12 $ 11,250
Line F - Monthly estimated tax (60% of Line E) $ 6,750
Penalty and Interest for Underpayment of Estimated Tax
Failure to timely pay estimated tax using the alternative method and/or any tax due on a transaction
of $200,000 or more on the date of sale will result in:
• A specific underpayment of estimated tax penalty of 10 percent of the underpayment. You
may also be subject to a delinquency penalty of 10 percent of the tax due and interest.
• The interest rate is updated twice each year and will be calculated starting on the 21st day
of the month following the month for which the tax is due. To obtain interest rates, visit our
Internet site at www.myflorida.com/dor.

Section 8 Collection and Computation

To compute the amount of tax to be collected, a dealer must first determine the amount on which
the tax is to be calculated. This is considered the taxable base (net selling price).
Taxable Base or Net Selling Price
To determine the taxable base (net selling price), the dealer must take into consideration the
following:
• Retail sales price
• Amount of any trade-in allowance
• Whether the sale qualifies as an exempt sale
Applicable Tax Rate
Once the taxable base (net selling price) is determined, the applicable tax rate is applied to the
taxable base (net selling price) to determine the amount of tax to be collected.

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Example:
Sale of motor vehicle Dollar amounts
Sales price of motor vehicle $ 25,000
Less trade in <4,000>
Taxable base (net selling price) $ 21,000
Tax at 6% $ 1,260
Discretionary Tax at 1% ($5,000 cap) $ 50
Total amount due $ 22,310

Taxable Sales
The sale, use, or storage for use in this state of any motor vehicle is taxable on the full sales price,
without any deductions. This includes such components as:
• Dealer’s prep
• Tire and waste fee
• Federal taxes (unless separately stated)*
• Freight
• Handling
• Delivery
• Commission
• Repossession
• Advertising
• Future free service
• Notary fees
• Any other expenses or costs

* Section 12A-1.022(1)(b), F.A.C., states that federal retail excise taxes imposed on the retail sale
of a motor vehicle are not subject to tax when separately stated on the sales invoice. Section
12A-1.022(1)(a), F.A.C., states that federal manufacturers' excise tax(es) imposed on the
manufacturer are part of the sales price (net selling price) of any motor vehicle on which the tax is
computed, whether or not separately stated.

Government Requirements Exempt from Tax

Motor vehicle tag, title, registration, licensing, and lien recordation fees imposed by governmental
agencies are excluded from the taxable selling price (net selling price). The “Lemon Law”, $2 Motor
Vehicle Warranty Enforcement Act (MVWEA) fee on new motor vehicles is NOT subject to sales
tax.
Rental Payments Taxable
The total rental payment received on a leased vehicle is subject to sales tax and may be subject to
surtax. This includes the rental car surcharge ($2 a day on passenger motor vehicles) which is
only assessed on the first 30 days of the rental.
Separate charges of gasoline on which a motor fuel tax was already paid and optional insurance
are NOT a part of the taxable base. However, when a separately itemized charge for a fuel
purchase option is required, and no allowance has been made for the amount of fuel remaining in
the rented motor vehicle’s gas tank, the fuel charge is not a charge for the price of fuel upon which
the fuel taxes have been paid. Therefore, any separately itemized fuel charges the renter is
required to pay, are considered part of the total taxable rental charges.

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Trade-in Allowance
For a trade-in to reduce the taxable base (net selling price) of the motor vehicle, the trade must be:
• Tangible personal property (TPP)
• Intended to be resold

When the sale and trade-in are accomplished in one transaction, the trade-in allowance shall be
deducted from the gross sales price to determine the taxable base (net selling price). Therefore,
only the net sales price (full sales price less any trade-in) is subject to tax. Third party trade-ins may
be accepted.
Example: A registered motor vehicle dealer accepts a used motor vehicle as a trade-in on
the sale of a new motor vehicle.
Sales price of a new motor vehicle $ 17,500
Less trade-in (used motor vehicle) <2,300>
Taxable base (net selling price) $ 15,200
Tax computed on this amount $ 15,200

Example: A registered recreational vehicle dealer accepts as a trade-in on the sale of a new
recreational vehicle, an air conditioning unit (TPP) which he intends to resell as part of
another recreational vehicle.
Sales price of new recreational vehicle $ 32,000
Less trade-in (air conditioning unit) <1,000>
Taxable base (net selling price) $ 31,000
Tax computed on this amount $ 31,000

Separate Sales Transactions

When there are separate sales transactions, by either the buyer or seller of the motor vehicle, the
other vehicle is NOT a trade-in, even if the proceeds of the sale are immediately applied to the
purchase of another vehicle. In this case, the tax is due on the gross sales price and there is no
reduction in the taxable base for a trade-in.
Dealer's Discount
A dealer's discount reduces the selling price of the vehicle at the moment of sale.

Example: A car dealer advertises a "BIG" sale. For this sale, the dealer is marking down the
price of all cars in stock by $1,000.
Sales price of car $ 15,000
Less dealer discount <1,000>
Taxable base (net selling price) $ 14,000
Tax due on this amount $ 14,000

Example: A car dealer advertises a "BIG" sale. For this sale, the dealer is marking down the
price of all cars in stock by $1,000 and allows trade-ins.
Sales price of car $ 15,000
Less dealer discount <1,000>
Reduced sales price $ 14,000
Less trade-in <2,500>
Taxable base (net selling price) $ 11,500
Tax due on this amount $ 11,500

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Manufacturer's Rebate
A refund issued directly by the manufacturer to the purchaser of a motor vehicle is NOT a reduction
in the selling price (net selling price) by the dealer and the tax is calculated on the full selling price
of the vehicle. When a rebate is assigned to the dealer by the purchaser and applied to the
purchase of the vehicle at the moment of the sale, it is NOT a reduction in the selling price and the
tax is calculated on the full selling price of the vehicle.
Example: A car dealer advertises a "BIG" sale. For this sale, the dealer is marking down the
price of all cars in stock by $1,000. The car manufacturer is also providing new car buyers
with a rebate of $1,000. (Purchaser resides in a county with no surtax.)
Sales price of car $ 15,000
Less dealer discount <1,000>
Taxable base (net selling price) $ 14,000
Tax is due on this amount $ 14,000
Tax due $ 840
Manufacturer’s rebate <1,000>
Total due from customer $ 13,840
Note: The Manufacturer’s Rebate does not reduce the taxable base.
Example: The car dealer with the "BIG" sale accepts a used car as a trade-in on the same
transaction in which he sells a new car to his customer. (Customer resides in 1 percent surtax
county.)
Sales price of car $ 15,000
Less dealer discount <1,000>
Reduced sales price $ 14,000
Less trade-in (used motor vehicle) <2,500>
Taxable base (net selling price) $ 11,500
Tax due @ 6% DSS due @ 1% ($690+ $50) $ 740
Total amount due $ 12,240
Manufacturer’s rebate <1,000>
Amount due from purchaser $ 11,240

The sales price (net selling price) of the car is reduced by the dealer's discount, reduced by the
trade-in, but NOT by the manufacturer's rebate when determining the taxable base.
Tax Calculation
The general sales tax rate is 6 percent on motor vehicles. The correct amount of tax must be
calculated by using the bracket system. For a listing of the six most common Florida tax rates, go to
Form DR-2X, the Sales Tax Rate Table on our website.
On the sale of a motor vehicle with a total taxable price (net selling price) of $25,160.17, the tax
would be calculated as follows:
Multiply the price ($25,160) of the motor vehicle by 6 percent. ($25,160.00 X .06 = $1,509.60), then
check rate table for the appropriate tax on $.17 (.02¢) for total tax due of $1,509.62.
The tax is paid by the ultimate consumer and is collected by the retailer at the time of the sale.
In addition, a local discretionary sales surtax currently ranging from .25 percent to 1.5 percent may
be imposed based on the residence address of the purchaser of the motor vehicle. The
Discretionary Sales Surtax Information sheet (Form DR-15DSS) is posted on our website.

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Tax Collected on Sales to Nonresidents
Florida law allows qualified purchasers who live in another state a partial tax exemption on motor
vehicles that are purchased in Florida.
Residents of another state only pay Florida sales tax (on a motor vehicle purchased in Florida) at
the sales tax rate imposed in the non-resident's home state. In no case will more than the Florida
sales tax rate of 6 percent be collected. Discretionary sales surtax does not apply to a motor vehicle
sold to a non-resident.
The dealer must have the Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in
Another State (Form DR-123), signed by the customer for sales to residents of another state. The
purchaser must title the vehicle in his/her own state, within 45 days to retain the exemption; removal
of the vehicle is not required. Please see Affidavit for Partial Exemption of Motor Vehicle Sold for
Licensing in Another State (Form DR-123), on our Internet site.
Example: Sale of $20,000 motor vehicle to a resident of another state. Tax would be collected on
the $20,000 sales price at Florida’s state sales tax rate of 6 percent. No discretionary sales surtax
would be collected.
Out-of-State Sales Tax Rates
The collection of different state rates creates a problem for motor vehicle dealers to correctly report
the sales taxed at a rate lower than 6 percent on the Sales and Use Tax Return (Form DR-15).
All motor vehicle dealers registered in Florida should use the following method for reporting
out-of-state sales of motor vehicles on their Sales and Use Tax Return (Form DR-15).
For reporting purposes on the Sales and Use Tax Return (Form DR-15), calculate the amount of
taxable sales and exempt sales by using the following method:
1. Determine the tax rate of the purchaser's state of residence, in which the vehicle will be
registered.
2. Multiply the sales price (purchase price less any trade-in credit, if applicable) by the tax rate of
the other state, shown as a decimal, then divide by six percent (.06), shown as a decimal.
The result of this calculation is the reported taxable amount that is included on Line A, Column 3
(Taxable Amount), of the Sales and Use Tax Return (Form DR-15).
3. To determine the exempt sales to be reported, subtract the taxable amount computed in #2
above from the sales price. This amount is reported on Line A, Column 2 (Exempt Sales), of
the Sales and Use Tax Return (Form DR-15).
4. To determine the amount of tax to be reported, multiply the taxable amount computed in #2
above by .06 (Florida's rate). This is the same amount as the actual tax collected on the
transaction.

The following are examples of how sales transactions of a motor vehicle purchased in Florida that
will be registered in another state will be reported on Form DR-15.

Example A: A motor vehicle that will be registered in Alabama is purchased for $14,356.00.
(Alabama rate is two percent.)
$14,356.00 (sales price) times .02 (Alabama's rate) divided by .06 equals $4,785.33.
$14,356.00 X .02 Divided by .06 = $4,785.33
This is the reported taxable amount for this transaction.

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 $14,356.00 less $4,785.33 equals $9,570.67.
$14,356.00 less <$4,785.33> = $9,570.67
This is the amount of exempt sales to be reported for this transaction.

$4,785.33 (taxable portion) times .06 (Florida's rate) equals $287.12 OR $14,356.00 (sales
price) times .02 (Alabama's rate) equals $287.12 tax collected.
$14,356.00 X .02 Divided by .06 = $4,785.33
$14,356.00 less <$4,785.33> = $9,570.67
$ 4,785.33 X .06 = $287.12 $14,356. X .02 = $ 287.12
DR-15 Sales and Use Tax Return

Example B: An out-of-state resident purchases a motor vehicle for $23,949.00 that will be
registered in Georgia. The purchaser trades in a motor vehicle and receives a $5,200.00
credit to be applied to the sales price of the new motor vehicle. (Georgia rate is four percent.)
$18,749.00 ($23,949.00 [purchase price] less $5,200.00 [trade-in]) times .04
(Georgia's rate) divided by .06 (Florida's rate) equals $12,499.33.
$18,749.00 X .04 Divided by .06 = $12,499.33
This is the reported taxable sales amount for this transaction

$18,749.00 less $12,499.33 equals $6,249.67.

$18,749.00 less <$12,499.33> = $ 6,249.67
This is the reported exempt sale for this transaction.
$12,499.33 (taxable portion) times .06 (Florida's rate) equals $749.96 OR $18,749.00 times
.04 (Georgia's rate) equals $749.96 tax collected.
$18,749.00 X .04 Divided by .06 = $12,499.33
$18,749.00 less <$12,499.33> = $ 6,249.67
$12,499.33 X .06 = $749.96 $18,749. X .04 = $ 749.96

DR-15 Sales and Use Tax Return

*These sales should also be reported on Line 15(b) on the back of the return.

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 Example C: Transactions for South Carolina Residents – South Carolina has a sales tax limit
of $300.00. The tax rate for South Carolina is five percent (5 percent).
If the sales price exceeds $6,000.00, the portion over $5,000.00 becomes the reported
exempt sales and the $5,000.00 becomes the reported taxable amount. ($5,000 times 6
percent equals $300.)
(a) Sales price exceeds $6,000.00
$12,000.00 (sales price) less $5,000.00 (taxable amount) equals $7,000.00 (exempt sales).
Tax due is $300.00.
South Carolina $12,000.00 $7,000.00 $5,000.00 $300.00
(b) Sales price less than $6,000.00
If the sales price is less than $6,000.00, you will use the method explained above:
South Carolina $4,000.00 $ 666.67 $3,333.33 $200.00

$4,000.00 (sales price) times .05 (South Carolina's rate) divided by .06 equals $3,333.33.
This is the reported taxable amount for this transaction.
$4,000.00 X .05 Divided by .06 = $3,333.33

$4,000.00 less $3,333.33 equals $666.67. This is the reported exempt sale for this
transaction.
$4,000.00 less <$3,333.33> = $ 666.67

$3,333.33 (taxable amount) times .06 (Florida's rate) equals $200.00 OR $4,000.00 times .05
equals $200.00 (tax collected).
$ 3,333.33 X .06 $200.00 $4,000.00 X .05 = $ 200.00

$ 4,000.00 X .05 Divided by .06 = $ 3,333.33

$ 4,000.00 less <$3,333.33> = $ 666.67
$ 3,333.33 X .06 = $200.00 $4,000.00 X .05 = $ 200.00

The following is the way these transactions will appear on Form DR-15.

Note: Because these vehicles will be registered in another state, they are NOT subject to
discretionary sales surtax.

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The "Taxable Amount" for these transactions included on Line A, Column 3, of Form DR-15 must
also be included on the back of the return on Line 15(b).
Sum totals of all out-of-state sales on the above return
Alabama $14,356.00 $ 9,570.67 $ 4,785.33 $ 287.12
Georgia $18,749.00 $ 6,249.67 $12,499.33 $ 749.96
South Carolina $16,000.00 $ 7,666.67 $ 8,333.33 $ 500.00
Out-of-State Purchasers Residing in States with a Sales Tax Rate Above 6 Percent
If the sales tax rate in the non-resident's state is greater than 6 percent, the non-resident will only
pay tax at the 6 percent Florida rate on a motor vehicle purchased in Florida.

Example: Sale of $20,000 motor vehicle to California resident with sales tax rate of 7.25%.
Tax would be collected on the $20,000 sales price at the rate of 6%, Florida’s state sales tax
rate.

The dealer must have the Affidavit for Partial Exemption of Motor Vehicle Sold (Form DR-123)
signed by the customer and notarized for all out-of-state sales transactions.

Since possession is taken in Florida, the sales tax is due in Florida. Some states may require their
residents to pay the sales tax again in order to register the vehicle in that state. For the most
current out-of-state rates, please see TIP #12A01-01 on the Revenue Law Library.
For states that do NOT impose a sales tax on motor vehicles, no sales tax will be due from the out-
of-state purchaser if the purchaser completes the Affidavit for Partial Exemption of Motor Vehicle
Sold (Form DR-123) and licenses the motor vehicle in their state of residence within 45 days of
purchase in Florida.
Exempt Transactions
The following discussion lists certain transactions that are exempt from tax and the necessary
documentation needed to support the exemption.
The determination of the taxable or exempt status of a transaction is the responsibility of the selling
dealer. The selling dealer is required to obtain this documentation from the purchaser to justify
exempt transactions. If at any time the transaction cannot be supported with the proper
documentation, the transaction is subject to tax.
The selling dealer must either obtain a signed copy of the current Annual Resale Certificate (Form
DR-13) or the Florida Consumer’s Certificate of Exemption (Form DR-14) or document the
authorization number for the exempt nature of the transaction. The selling dealer can get a
transaction resale authorization number through either an automated toll-free telephone system or
an online verification system.
By Telephone: The nationwide toll-free number is 877-357-3725. The selling dealer must key in
the purchaser’s sales tax certificate number using a touch-tone phone.
Internet: Visit our Internet site at www.myflorida.com/dor/gta.html for the online verification
system. The selling dealer must first enter his or her own 13-digit sales tax certificate number. Once
this is verified, the selling dealer may then enter up to five customers’ sales tax certificate numbers.
Both the telephone and online systems will issue a 13-digit transaction authorization number or alert
the selling dealer that the purchaser does not have a valid resale certificate. The transaction resale
authorization number is valid for that purchase only, and is not valid for other resale purchases
made by the same purchaser. (The selling dealer must get a new transaction resale authorization

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number for each resale transaction.) The sales invoice, purchase order, or other evidence of the
sale must contain the transaction authorization number and this statement, signed by the
purchaser: “The purchaser hereby certifies that the property or services being purchased or rented
are for resale.”
Sales for Resale
Sales at wholesale between dealers are exempt when the purchasing dealer extends a signed copy
of their current Annual Resale Certificate to the selling dealer instead of paying tax on the
transaction.
Sales at wholesale to rental or leasing companies should be supported by a signed copy of the
current Annual Resale Certificate. When the vehicle is subsequently resold or leased, the
purchasing dealer collects the sales tax from the ultimate consumer.
A non-registered out-of-state dealer may purchase a motor vehicle for resale without paying tax by
providing the selling dealer with an affidavit. The affidavit must state that the nonresident dealer is
registered to do business in his home state or country and that the vehicle will be transported
outside Florida for resale and for no other purpose.
Out-of-Country Exports
There is no sales tax due on the sales of motor vehicles or recreational vehicles purchased for
export outside the country. The selling dealer must deliver the vehicle to one of the following for
shipment:
• Common carrier
• Licensed exporter
• Dealer-owned transportation
• Freight forwarder

Documentation is needed to exempt this transaction from sales tax. For example, trip tickets and
truck log records could be used for documentation if the delivery was made using the dealer’s
transportation. If the dealer uses a common carrier, examples of documentation could be a dock or
warehouse receipt and a bill of lading.
If the sale takes place in Florida, and the purchaser or anyone representing the purchaser
(employee, family member, etc.) takes possession of the vehicle in Florida, sales tax will apply to
the purchase. The purchaser is taxed just like a Florida resident.
Sales to Motor Carriers
Motor carriers, which transport persons or property in interstate commerce, may qualify for proration
of Florida sales tax on the purchase or lease of motor vehicles and parts thereof.
The Department of Revenue must issue a Certificate of Registration (Form DR-11) and a Direct Pay
Permit (Form DR-16P). The selling dealer shall obtain from the motor carrier, at the time of
purchase or lease, in lieu of collecting sales tax, a copy of their direct pay permit. In turn, the motor
carrier will have the responsibility to self-accrue and pay the use tax on the purchase of the vehicle
to the Department based on mileage.
The lease or rental of a commercial motor vehicle to one lessee or renter for a period of 12 months
or more is exempt from sales tax if the sales tax was paid on the purchase price of the vehicle by
the lessor. Any subsequent leases of the same vehicle are taxable.
Sales to Exempt Entities
Federal, state, county, and city governments; and qualified nonprofit organizations, such as
religious, charitable, scientific, educational, or veterans organizations (as defined in s. 212.08, F.S.)
may be eligible to obtain a Florida Consumer’s Certificate of Exemption (Form DR-14) from the

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Department for the purpose of purchasing items, for use in carrying on the work of the institution
or entity.

Those organizations, which have been granted a Florida Consumer’s Certificate of Exemption
(Form DR-14), may purchase motor vehicles tax-exempt by presenting a valid copy of their tax
exemption certificate and other supporting documentation to the selling dealer at the time of the
sale. The vehicle must be titled in the name of the exempt entity exactly as it appears on the
Consumer’s Certificate of Exemption (Form DR-14) in order to exempt the sale.
Leases to Governmental and Non-Profit Employees
The lease or rental of a motor vehicle to a Federal employee is exempt from tax whether the
Federal government or the Federal employee makes payment. The Federal employee should
provide the dealer with a copy of the official Federal Government Travel Orders authorizing the
individual to lease an automobile at the government's expense for the specifically authorized period
or a written statement from the employee which states:
• The employee's name
• The name and address of the Federal agency issuing the travel orders
• A statement, which affirms the need for the travel vehicle has arisen in the pursuit of the
employer's affairs with the actual cost of the vehicle being paid or reimbursed by the Federal
agency
The lease of motor vehicles to employees of organizations or government entities other than
Federal agencies are taxable unless the employee provides to the selling dealer, documentation
which states that the sale is being made directly to and paid by the organization, and which bears
the exempt organization or government entity’s Consumer’s Certificate of Exemption (Form DR-14)
number.
Veterans Administration
When a veteran of the armed forces purchases an aircraft, boat, mobile home, motor vehicle, or
other vehicle from a dealer pursuant to the provisions of s. 3902(a), Title 38, United States Code, or
any successor provision of the United States Code, the amount that is paid directly to the dealer by
the Veterans Administration is not taxable.
However, any portion of the purchase price, which is paid directly to the dealer by the veteran, is
taxable.
Service Warranties
Imposition of the Sales Tax on Service Warranties
A motor vehicle dealer is required to collect sales tax when a customer purchases a motor vehicle
service warranty from the dealer. For purposes of applying the discretionary sales surtax, the
$5,000 cap does not apply to the sale of a service warranty on a motor vehicle.
A "service warranty" means any contract or agreement which indemnifies the holder of the contract
or agreement for the cost of maintaining, repairing, or replacing tangible personal property,
including motor vehicles.
Service warranties sold to out-of-state or out-of-country residents are subject to the state sales tax
rate of 6 percent. The discretionary sales surtax (surtax) does not apply when the vehicle will be
registered or licensed in another state or country. However, if the nonresident registers the vehicle
in Florida, surtax will apply at the rate imposed by the county in which the vehicle is registered.
Exempt Sales
The sale of a service warranty is not taxable if the purchaser of the vehicle is exempt from sales
tax.

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 Example: A qualifying exempt entity purchases a vehicle and a service warranty
covering that vehicle. The qualifying exempt entity has a Florida Consumer’s
Certificate of Exemption (Form DR-14) from the Department of Revenue and extends
a copy of their exemption certificate to the selling dealer. The dealer does not collect
sales tax on the motor vehicle or the service warranty contract on these documented
sales.

Credit for Cancelled Sales

When a service warranty is cancelled and the dealer refunds the purchase price of the warranty, the
dealer must also refund the tax paid by the warranty holder for the warranty. If only a portion of the
purchase price is refunded to the warranty holder, the dealer must refund the tax that was paid on
the portion of the warranty being refunded. The dealer may request a refund from the Department
or take credit on the Sales and Use Tax Return (Form DR-15) for the sales tax refunded to the
customer.
Repairs Under a Service Warranty
When repairs are made to a vehicle under a service warranty, the payment of all or any portion of
the claim by the service warranty issuer to the repairperson is not subject to sales tax.
Sales tax DOES apply to the warranty holder on any amount paid which is (i.e., deductibles) not
covered by the warranty including repairs paid directly by the customer who is subsequently
reimbursed by the service warranty issuer.
The repairperson must note on the repair invoice:
• The name of the service warranty issuer
• Service warranty policy number
• Issue date of the service warranty
• Florida sales tax number of the service warranty issuer and the amount of the claim to be
paid by the service warranty issuer
Tax Due at Time of Sale
When a motor vehicle service warranty is sold in conjunction with the lease of a motor vehicle, tax
is due at the time of the sale of the service warranty even though the amount of the premium is
prorated over the term of the lease.
Repairs
When registered dealers repair vehicles for their customers, and parts are included in the repair,
sales tax is due on the total charge, including labor. If no parts or materials are used and it is shown
on the invoice that it was a service repair only, no tax is due on the repair. Parts and materials
used in the repair of motor vehicles, purchased by the selling dealer are NOT taxable when
incorporated into and sold as part of the vehicle.
Lubrication Services
The charge for lubrication services, including grease jobs and oil changes, is taxable.
Repairs to Tires
The charge for repairing flat tires is taxable. The charge for wheel balancing or tire mounting is
taxable if tangible personal property are added to the tire.
Repairs to Vehicles Held in Inventory for Sale
When a registered dealer has repairs made to a vehicle held in inventory for sale, no sales tax is
due on the repair bill. Tax will be collected when the vehicle is sold.

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Insurance Claim Repairs
When a registered dealer makes repairs to a vehicle in an insurance claim, if parts are used, sales
tax is due on the repair. If no parts or materials are used, no sales tax is due. Insurance
companies should not pay tax on repairs to vehicles used exclusively for rental purposes. See TIP
01A01-09, Repair of Vehicles Owned By Car Rental Companies on our Internet site.
Repairs to Vehicles Used as Rentals
When parts are used to repair a vehicle, which is used exclusively for rental purposes, no tax is due
on the repair.

Wrecker Services
Wrecker or towing charges are a service and are not taxable if the dealer separately states the
towing charges on the invoice.

Car Wash Services

The charge for a car wash, in which only detergent or water softener is added to the water, is
exempt from tax. The purchase of the detergent and water softener is taxable to the dealer.
The charge for a wash job where wax, silicones, or any other substance is added that forms a
protective film or coating on the vehicle is taxable to the customer. The purchase of the wax,
silicones, or other substance will be exempt to the dealer.
Replacement of Motor Vehicle (Lemon Law)
Requirements
When the manufacturer replaces a motor vehicle pursuant to the requirements imposed by the
Lemon Law, the motor vehicle dealer must note on the sales invoice or other sales document, that
the motor vehicle is a replacement vehicle under the provisions of s. 681.104, F.S., and must collect
sales tax from the consumer on the amount of reasonable offset for use.
Reasonable Offset for Use
"Reasonable offset for use" means the number of miles attributable to a consumer up to the date of
the third repair attempt of the same non-conformity or the 20th cumulative day when the vehicle is
out-of-service by reason of repair of one or more non-conformities, whichever occurs first, multiplied
by the purchase price of the vehicle and divided by 120,000. In the case of recreational vehicles,
the multiplier is 60,000. (See s. 681.1029[20], F.S.)

Example:
The total sales price of the vehicle less trade-in allowance was ................................ $18,000
The vehicle was driven ..........................................................................................2,000 miles
Reasonable offset for use ................................................(2,000 @ $18,000) / 120,000 = $300
Tax to be collected based on usage by the owner ..................................... ($300 @ 6%) = $18

Section 9 Use Tax

Dealers' License Plates

A registered motor vehicle dealer pays an annual license plate fee to the Department of Highway
Safety and Motor Vehicles for use of any vehicle in its inventory to be operated in connection with

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its business. The $27 fee is a use tax for the year the license plate was purchased and used and is
in addition to fees imposed by Chapter 320.08(12), F.S., and is paid to the local tax collector’s office
or county tag agency.
Vehicles Not Held for Resale
Motor vehicles that are capitalized in a fixed asset account and depreciated for income tax
purposes are taxable to the dealer based on the cost price of the vehicle.
If a motor vehicle manufacturer, distributor, dealer, or lessor registers the motor vehicle purchased
for resale in a name other than that of the manufacturer, distributor, dealer, or lessor and retains
title to the vehicle, the vehicle is not being held for sale and tax must be paid based on the cost
price of the vehicle.
If a motor vehicle dealer assigns a motor vehicle to a person other than an employee or officer, it is
not being held in inventory for sale and tax must be paid based on the cost price of the vehicle.
Examples: Spouses, parents, children, or other relatives.
No sales or use tax or rental car surcharge is due on a motor vehicle that is loaned at no charge by
a motor vehicle dealer under the following circumstances:
• The vehicle is loaned to a person whose vehicle is being repaired, adjusted, or serviced by
the dealer providing the replacement vehicle.
• The vehicle is loaned to a high school for use in its driver education and safety program.
• The dealer in connection with its business for demonstration purposes, loans the vehicle,
provided that the dealer has obtained a dealer’s license plate for such vehicle, pursuant to s.
320.08(12), F.S., and has paid the appropriate $27 use tax fee on said dealer's license
plate.
Dealers are required to maintain adequate records to support the exemption from use tax on the
loan of any vehicle at no charge.
Taxable Loaner Vehicles
All other loans of a motor vehicle at no charge by motor vehicle dealers are subject to use tax
based on the annual lease value as determined by the United States Internal Revenue Service's
Automobile Annual Lease Value Table shown in this section.
Solely for purposes of sales and use tax on loaner vehicles, the phrase "no charge" means that no
monetary consideration is being exchanged for the use of the motor vehicle. If monetary
consideration is being given to a motor vehicle dealer in exchange for the use of a vehicle, the
value of all consideration for the use of the vehicle will be the basis of determining sales tax, and
the lease value table will not be applicable to the transaction.
To calculate the amount of use tax due, determine the annual lease value of a motor vehicle as
follows:
1. Determine the fair market value of the motor vehicle. The fair market value shall not be less
than the manufacturer’s invoice price (including optional equipment for previously untitled
vehicles) or the dealer's cost to acquire a previously titled vehicle plus any cost involved in
making the vehicle available for loan.
If a vehicle, for which no dealer's license plate has been obtained, is loaned to an employee, the
fair market value should be the same as that which is used to compute the annual lease value
for purposes of determining the fringe benefit reportable as employee wages to the Internal
Revenue Service.
2. Using the Annual Lease Value Table, find the dollar range in Column 1 for the fair market value
of the motor vehicle. The corresponding amount in Column 2 is the annual lease value.

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 Divide the annual lease value by 365. Multiply that amount by the number of days the motor
vehicle is loaned during each month. Tax is computed by multiplying that amount by 6 percent,
plus any applicable surtax.

NOTE: Use tax is to be remitted by the dealer for each month the motor vehicle is on loan.
The following table shall be used to determine the annual lease value for "no charge" loaner
motor vehicles:

Annual Lease Value Table Annual Lease Value Table

Automobile Fair Annual Automobile Fair Annual
Market Value Lease Value Market Value Lease Value
$ 0 to 999 $ 600 21,000 to 21,999 $ 5,850
1,000 to 1,999 850 22,000 to 22,999 6,100
2,000 to 2,999 1,100 23,000 to 23,999 6,350
3,000 to 3,999 1,350 24,000 to 24,999 6,600
4,000 to 4,999 1,600 25,000 to 25,999 6,850
5,000 to 5,999 1,850 26,000 to 27,999 7,250
6,000 to 6,999 2,100 28,000 to 29,999 7,750
7,000 to 7,999 2,350 30,000 to 31,999 8,250
8,000 to 8,999 2,600 32,000 to 33,999 8,750
9,000 to 9,999 2,850 34,000 to 35,999 9,250
10,000 to 10,999 3,100 36,000 to 37,999 9,750
11,000 to 11,999 3,350 38,000 to 39,999 10,250
12,000 to 12,999 3,600 40,000 to 41,999 10,750
13,000 to 13,999 3,850 42,000 to 43,999 11,250
44,000 to 45,999 11,750
14,000 to 14,999 4,100
46,000 to 47,999 12,250
15,000 to 15,999 4,350
48,000 to 49,999 12,750
16,000 to 16,999 4,600
50,000 to 51,999 13,250
17,000 to 17,999 4,850
52,000 to 53,999 13,750
18,000 to 18,999 5,100
54.000 to 55,999 14,250
19,000 to 19,999 5,350
56,000 to 57,999 14,750
20,000 to 20,999 5,600
58,000 to 59,999 15,250

For vehicles with a fair market value of more than $59,999, the annual lease value equals:
(0.25 X the fair market value of the automobile) + $500.
Shop Overhead
Sales tax is due on any item a dealer purchases that is not purchased for resale or does not
become a component part of a repair or car wash. If sales tax is not paid at the time of purchase, a
dealer is required to accrue use tax and report the tax on their next sales tax return paid to the
Department. If the dealer is located in a surtax county, the applicable local discretionary sales
surtax is also due.
Most shops now make a special charge on their repair tickets to cover the cost of overhead items.
However, these charges are normally made for a flat fee, or are calculated as a percentage of the

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repair bill. In both cases, the shop is not actually selling these overhead items, instead they’re just
recovering their cost. The charges for the shop overhead items are taxable if the repair of the
vehicle is taxable. Some examples of taxable items include shop supplies (hammers, screwdrivers,
sanders, sand paper, testing machinery, masking tape, shop towels, and other type items); office
furniture, business cards, stationery, and computers.

Example:
A body shop paints and repairs a car.
Invoice 101
ABC Auto Repair
123 Commerce Blvd.
Jacksonville, Florida 32210

Paint $ 700.00
Shop Supplies @ 10% (not itemized) $ 70.00
Total $ 770.00
Tax @ 6 percent $ 46.20
Total Cost to Customer $ 816.20

Tax is still due on the purchase of the supplies since they are not actually sold to the customer.

Section 10 Repossessions, Bad Debts, and Refunds

When a dealer repossesses a motor vehicle under a retained title, conditional sale, or similar
contract, and has paid sales tax on the full selling price of the motor vehicle, the dealer may take
credit on a subsequent return or obtain a refund of that portion of the tax that is applicable to the
unpaid balance of the contract.
The credit or refund must be claimed within 12 months following the month in which the vehicle was
repossessed. The dealer who originally submitted the tax on his or her Sales and Use Tax Return
(Form DR-15) may claim a Line 6 lawful deduction or request a refund on Form DR-26S,
Application for Refund.
NOTE: If claiming a Line 6 lawful deduction, the dealer should keep Form DR-95B in his or her
records. If requesting a refund, the dealer should attach a copy of Form DR-95B along with all
supporting documentation to Form DR-26S, Application for Refund.
Schedule of Florida Sales or Use Tax Credits Claimed on Repossessed Motor Vehicles
(Form DR-95B), should be completed and used to calculate credits for sales and use tax paid on
repossessed motor vehicles.

Repossessions
The tax credit or refund is based on the sales price, excluding any finance charges or other
nontaxable charges, and is calculated using the straight-line method of amortization. The collection
allowance taken at the time the tax was originally paid to the state is deducted from the amount of
the refund or credit due.

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 Schedule of Florida Sales or Use Tax Credits Claim
on Repossessed Motor Vehicles (Form DR-95B)
Sales Tax Purchase
Vehicle
Paid on Purchase Price Less Length of Monthly Number of
Customer’s Make, Year, Date Tax Sales or Use Actual Date of
Original Price Less Trade-in Contract in Payment Payments Tax Credit
Name and ID Paid Tax Rate Repossession
Purchase Trade-in Less Cash Months Prorated Unpaid
Number
Price Down

1 2 3 4 5 6 7 8 9 10 11 12

Example: Sales Price of Vehicle $12,982

Less Trade In <2,000>
Dealer's Prep & Other 250
Amount Financed $11,232
Finance Charges (36 months) $ 2,988

4 5 6 7 8 9 10 11 12
$673.92 $11,232 36 $312 6% 26 $486.72 6/99

No. of payments remaining 26

Column 4 - Sales tax paid on the original purchase = $673.92.

Column 5 - Purchase price less trade-in = $11,232. This does not include non-taxable charges like
interest, license fees, notary charges, etc.
Column 6 - Complete if there is a trade-in.
Column 7 - Contract length in months = 36.
Column 8 - Monthly payment prorated, divide Column 5 or 6 by Column 7 = $11,232 ÷ 36 =
$312.
Column 9 - Sales tax rate at the time of purchase = 6 percent. Multiply Column 8 by Column 9 =
$312 x 6 percent = $18.72.
Column 10 - Number of unpaid payments left on the contract = 26. Multiply Column 9 by Column
10, $18.72 x 26 = Column 11 or $486.72, tax credit.
Column 11 - Enter $486.72.

Calculation of credit or refund:

Monthly principle payment
($12,982 - $2,000 + 250) ÷ 36 = $312.00
Tax applicable to remaining payments
($312X26) x 6 percent = $486.72
Tax Credit/Refund
$486.72 - $12.17 (collection allowance) = $474.55
Notes:
1. Although the monthly payments were $395 per month for 36 months, the sales tax does not
apply to finance charges.

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2. Collection Allowance is 2.5 percent of the first $1,200 of tax.
The subsequent sale of a repossessed motor vehicle is subject to tax on the total sales price.
Bad Debts
A dealer, who reported and paid the sales tax, may take a credit or obtain a refund for any tax paid
by him on the unpaid balance due on accounts determined to be uncollectible.
Credits are taken on a subsequent Sales and Use Tax Return (Form DR-15).
The credit or refund must be claimed within 12 months following the end of the tax year in which the
account is determined worthless.
A bad debt deduction may be claimed only with respect to the unpaid amount on which tax has
been paid.
If a dealer recovers any part of an amount previously claimed as a bad debt, the amount collected
must be included in the first Sales and Use Tax Return (Form DR-15) filed after the collection
occurred.
Refunds and Credits
The Department of Revenue will allow a refund of sales tax on a returned motor vehicle provided:
• The purchaser is refunded the full amount of the purchase price plus sales tax.
• The motor vehicle was purchased from a motor vehicle dealer.
• The return of the motor vehicle and the amount refunded occurred within the statute of
limitations as provided by s. 215.26, F.S.
• The return of the motor vehicle is not in conjunction with the purchase of another vehicle.
If taxes were overpaid or not due, the purchaser must obtain a refund from the selling dealer and
not from the Florida Department of Revenue.
The dealer refunds the tax paid by the purchaser and the dealer is entitled to a refund of tax
previously paid to the Department. Instead of applying for a refund, the dealer may take a credit on
a subsequent tax return. The dealer may also apply for a refund (Form DR-26S) if the application is
made in writing within 3 years. The application for refund must be filed with the Department within
3 years of the date the tax was paid.

Section 11 Solid Waste Fees

Waste Tire & Lead-Acid Battery

Any person who makes a retail sale in Florida of a new tire or a new or remanufactured "lead-acid
battery" for use in a motor vehicle must pay a solid waste fee.

$1.00 for each new tire (the fee does not apply to recapped tires) and
$1.50 for each new or remanufactured lead-acid battery.

The fee is due whether the tire or battery is sold at retail separately or as a component part of a
motor vehicle.
Purchases for resale do not include the sale of a new tire or a lead-acid battery, provided the
subsequent sale in this state is subject to the fee.
Fees Imposed on the Seller - Rules 12A-12.001 and 12A-12.0011, F.A.C.
For the tire solid waste fee, the selling dealer (retailer), not the purchaser, is required to pay the
solid waste fee. The tire fee must be separately stated on the seller's invoice. The retail dealer

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owes the tire fee, even if the retail dealer chooses to sell to an entity who has a Florida Consumer’s
Certificate of Exemption (Form DR-14).
For the battery solid waste fee, the dealer may choose whether or not they separately state the fee
on the seller’s invoice and if the additional cost is going to be passed on to the purchaser. The
retailer may increase the price of the battery on the invoice by the fee ($1.50) to recoup the
retailer's cost of the fee, but this increase in price is considered to be an increase in the price of the
battery and not a payment of the fee by the purchaser.
In all circumstances, sales tax is computed on the price that includes tire and battery fees.

Example: A dealer purchases a used motor vehicle for resale. The dealer installs a new
battery and replaces the tires with four new ones before reselling the vehicle. A new tire, for
use as a spare, is also included in the sale.

The dealer must pay the battery fee and the tire fee on the five tires when the vehicle is sold in this
state. The used motor vehicle dealer has the option to pay the tire fee to the wholesaler.
Fees due on five new tires @ $1 each = $5, and one lead-acid battery @ $1.50 = $1.50. Total fees
due on this sale equal $6.50.

Example: A dealer buys five used cars at an automobile auction and gives an Annual Resale
Certificate (Form DR-13) for both the sales tax and the fees. Four of the cars are later sold,
but the fifth car is given to a member of the dealer's family as a gift.

Use tax is calculated on the purchase price of the car and paid by the dealer when the fifth car is
taken out of inventory to be given as a gift. No fees will be due unless a new or remanufactured
lead-acid battery or new tires are placed on the vehicle.

Example: A new car dealer imports new cars to be sold in this state. No sales tax or fees
have been paid to the supplier. When the cars are sold, the dealer owes and must pay the
tire and battery fees.

The sales tax collected from the customers must be calculated to include the fees paid by the
dealer, as part of the sales price. The tire fee paid by the dealer would be stated on the customer's
invoice. The dealer could elect whether to separately state the battery fee, which is paid by the
dealer on the customer's invoice. In all cases, the seller pays each new tire fee and each new or
remanufactured lead-acid battery fee. The taxable sales price of the vehicle includes the solid
waste fees when it is sold to the customer.

Exempt Sales or Sales for Resale

Sales made solely for the purpose of resale are generally exempt, provided a sales tax Annual
Resale Certificate (Form DR-13) is issued to the seller. However, the fees must be paid by the
dealer and not the purchaser.

Example: A tire wholesaler sells new tires to a used car dealer. The tire wholesaler is not
making a retail sale provided the tires are being purchased for resale in Florida and a valid
Annual Resale Certificate (Form DR-13) is provided by the used car dealer.

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When the used car dealer sells the vehicle on which the tires are a component part, the used car
dealer owes and must pay the new tire fee. The tire fee must be separately stated on the
customer's invoice. However, the fee is still imposed on the dealer and not the purchaser. If the
tires are withdrawn from the dealer's inventory for any use, other than for resale, the dealer must
pay the fee at the time the tires are taken out of the dealer's inventory.

Example: The used car dealer elects to pay the new tire fees to the tire wholesaler on the
purchase of the tires in lieu of purchasing them fee exempt.

For the purpose of the fees, the wholesaler must treat the sale as a retail sale and must state the
tire fees on the invoice. The used car dealer would indicate on the copy of the Annual Resale
Certificate (Form DR-13) given to the wholesaler, that the Annual Resale Certificate is used to
exempt sales tax only, and not the tire fee. When the used car dealer subsequently sells the tires,
as a component part of a motor vehicle, the contract or invoice must state that appropriate tire fees
have been paid. The tire fee does not need to be separately stated on the customer's invoice.
However, the fee is still imposed on the dealer, not the purchaser.

Example: A motor vehicle dealer operates an automobile repair facility in addition to the
dealer's retail/wholesale sales of motor vehicles. The dealer buys all new and
remanufactured lead-acid batteries from a wholesaler, issuing a sales tax Annual Resale
Certificate (Form DR-13).

When a new or remanufactured lead-acid battery is taken from the dealer's inventory to be used in
the repair of an automobile, the dealer owes and pays the battery fee. The dealer may choose to
increase the cost of the repair to include the battery fee or separately state the battery fee on the
customer's invoice. However, the fee is still imposed on the dealer, not the purchaser.

Example: A new car is sold to a tax-exempt organization. The dealer accepts the
purchaser's Consumer’s Certificate of Exemption (Form DR-14). The tire and battery fees
are imposed on the dealer and not the purchaser. The fees must be paid by the car dealer
at the time purchased by the car dealer or, if the dealer has given a copy of the Annual
Resale Certificate (Form DR-13) to the supplier, at the time the vehicle is sold to the tax
exempt organization.

Remittance of the Solid Waste Fees

Fees are usually paid on a monthly basis, on the Solid Waste and Surcharge Return (Forms DR-
15SW or DR-15SWCS) due on or before the 20th day of the month following the month of sale or
removal of the tire or battery from inventory for any other purpose.
Dealers whose fee liability is $1,000 or less for the preceding four (4) quarters may request a
quarterly reporting status by writing the Department. Additionally, a semi-annual reporting of the
fees is allowed when the preceding four (4) quarters do not exceed $500. There is no collection
allowance for these fees.

Credits for Returns and Exchanges

When a sale of a battery or tire is cancelled or the tire or battery is returned to the dealer, a credit
may be taken for fees already paid.
When a battery or new tire is returned for an exchange, the dealer cannot take a credit on the fee
for the returned item.

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 Example: The customer is given a new tire or new (or remanufactured) lead-acid battery in
exchange for the one that has been returned.

The dealer:
• Does not need to pay the fee again on the product provided in the exchange.
• Keeps the fee on the first invoice and notes (on the first invoice) that the original purchase was
returned for an exchange.
• Documents the exchange on the second invoice along with noting the original invoice where the
fee was paid.

Example: The purchaser is given a partial refund or is given a credit for partial payment on a
new tire or new or remanufactured lead-acid battery. The dealer still owes the fee due on the
sale of the new tire or new or remanufactured lead-acid battery and cannot take a credit for the
fee previously paid.

Motor Vehicle Warranty Fee (Lemon Law)

Florida imposes a two dollar ($2) fee on the sale or rental of each new motor vehicle in the state.
This fee is used for the cost of arbitration on behalf of the purchaser against the manufacturer when
a vehicle is deemed a "lemon."

Imposition of the Fee

Motor vehicle dealers and other persons in the business of selling or leasing motor vehicles must
collect the motor vehicle warranty fee, also called the “lemon law” fee, from the purchaser or
lessee as follows:
• At the time of sale or lease of a new motor vehicle (including recreational vehicles and
demonstrator vehicles) for which a manufacturer’s warranty is issued.
• At the time of sale or lease of a new vehicle for which the dealer is not authorized to issue a
manufacturer’s warranty. These vehicles will be titled as used vehicles. Sales or leases of
other used vehicles are not subject to the fee.
Vehicles not subject to the fee include:
• Motorcycles and mopeds
• Off-road vehicles
• Trucks with a gross vehicle weight of over 10,000 pounds
• Sales or leases to city, county, or state agencies
Remittance of the Fee
The method of remittance depends on where the vehicle will be registered and titled.
• If the vehicle will be registered and titled in Florida, the selling dealer must remit the fee
to the local county tax collector or private tag agency when the dealer applies for title.
• If the vehicle will be removed from Florida and will not be titled or registered in Florida,
the dealer must pay the fee directly to the Florida Department of Revenue and also
submit a Motor Vehicle Warranty Fee Report (Form DR-35). This form may be obtained
by visiting www.myflorida.com/dor.
The fees and associated returns should be submitted to DOR at the same time the motor vehicle
dealers send in their monthly sales and use tax returns and payments.
Taxable Sales or Lease Price
The two dollar ($2) lemon law fee is collected from the purchaser or lessee and is Not included in
the price on which sales tax is computed.

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This fee is NOT to be included when the dealer calculates his or her estimated tax or collection
allowance in the computation of the electronic funds transfer.
Rental Car Surcharge - $2 per Day or Any Part of a Day
Motor vehicle dealers who collect rental car surcharges located in two or more counties and who file
a consolidated Schedule of Rental Car Surcharge by County (Form DR-15SWS) are required to
report to the Department all surcharge collections according to the county to which the surcharge
was attributed. The surcharge is considered attributed to the county where the rental agreement
was entered into, which means the county where the lessee picks up the motor vehicle.
Motor vehicle dealers who file a consolidated Solid Waste and Surcharge Return (Form DR-15SW)
are required to file a Schedule of Rental Car Surcharge by County (Form DR-15SWS) to record, by
county, the number of days that motor vehicles were leased or rented that were subject to the rental
car surcharge. Dealers who file electronically are also able to file the Schedule of Rental Car
Surcharge by County (Form DR-15SWS) electronically.
Imposition of Surcharge
Note: The surcharge does Not apply to the lease or rental of a truck, truck trailer, travel
trailer, camping trailer, recreational vehicle with living facilities, van conversion, motorcycle,
or moped.
The rental car surcharge of $2.00 per day or any part of a day is imposed on the lease or rental of
motor vehicles designed to accommodate less than nine passengers. The surcharge is included in
the lease or rental price on which sales tax is computed and must be separately stated on the
invoice. The surcharge applies to the first 30 days of each lease or renewed rental agreement,
whether or not the vehicle is licensed in Florida.
Sport Utility Vehicles
When leasing or renting sport utility vehicles, the dealer must refer to the title issued by the
Department of Highway Safety and Motor Vehicles to determine if the vehicle is considered a
passenger vehicle or a truck.
Lease Periods Less than 12 Months
If a contract to lease or rent a motor vehicle is entered into in another state, the entire rental amount
is exempt from Florida sales tax and the rental car surcharge. The exemption applies even if the
vehicle is used or dropped off in Florida and even if payment is made in Florida. If a contract to
lease or rent a motor vehicle is entered into in Florida, the entire charge is subject to Florida sales
tax and the applicable rental car surcharge. The sales tax and surcharge apply even if the vehicle is
used or dropped off in another state and even if payment is made to another state.
Lease Periods for 12 Months or More
Tax is due when the vehicle is registered, licensed, or titled in Florida. No sales tax or rental car
surcharge will be due if the taxpayer documents that the vehicle is being used outside of Florida
and sales tax is being paid on the lease or rental payments to another state.
Exempt Sales or Self-Accrual of the Surcharge
The rental car surcharge does Not apply when a vehicle is rented or leased directly to an
organization, holding a Florida Consumer’s Certificate of Exemption (Form DR-14), making them
exempt from sales and use tax (example: church or governmental entity). To support the exempt
sale, the dealer may obtain a copy of the purchaser’s Florida Consumer’s Certificate of Exemption
(Form DR-14), by calling the Department of Revenue's telephone authorization system, or by
visiting our online system to verify the exemption certificate.
By Telephone: The nationwide toll-free number is 877-357-3725. The selling dealer must key in
the purchaser’s sales tax certificate number using a touch-tone phone.

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Internet: Visit our website at www.myflorida.com/dor/gta.html for the online verification system.
The selling dealer must first enter his or her own 13-digit sales tax certificate number. Once this is
verified, the selling dealer may then enter up to five customers’ sales tax certificate numbers.
Both the telephone and online systems will issue a 13-digit transaction resale authorization number
or alert the selling dealer that the purchaser does not have a valid resale certificate. The transaction
resale authorization number is valid for that purchase only, and is not valid for other resale
purchases made by the same purchaser. (The selling dealer must get a new transaction resale
authorization number for each resale transaction.) The sales invoice, purchase order, or other
evidence of the sale, must contain the transaction resale authorization number and this statement,
signed by the purchaser: “The purchaser hereby certifies that the property or services being
purchased or rented are for resale.”
A Direct Pay Permit (Form DR-16P) from the Department relieves the lessor from collecting and
paying sales tax on purchases or leases of tangible personal property and the car rental surcharge
from anyone who has obtained the self-accrual permit. The holder of the Direct Pay Permit must
provide a copy of the Direct Pay Permit to the lessor of the vehicle.
Registration
Each motor vehicle dealer and each person engaged in the business of leasing or renting “licensed-
for-hire passenger" motor vehicles designed to carry fewer than nine (9) passengers, are required
to be registered to collect and pay the $2 per-day surcharge.
When registering as a sales tax dealer, the applying dealer must indicate on the Application to
Collect and/or Report Tax in Florida (Form DR-1) the rental of motor vehicles. This will allow the
dealer to receive the Solid Waste and Surcharge Return (Form DR-15SW), meeting the
requirement for the purpose of the surcharge.
Remittance of the Surcharge
The amount of the surcharge is due and payable when the lease or rental payments are to be made
by the lessee or renter. The surcharge must be separately stated on any invoice, charge ticket, or
other evidence of rental.
The dealer is Not allowed to pay the surcharge for the customer. The surcharge is remitted to the
Department on the Solid Waste and Surcharge Return (Forms DR-15SW or DR-15SWCS) and is
due either monthly, quarterly, or in the same manner as the sales and use tax return.
There is No dealer’s collection allowance applicable to the rental car surcharge. The surcharge is
subject to sales and use tax and any discretionary sales surtax. It is Not included in computing
estimated sales and use taxes.
Guaranteed Automobile Protection (GAP) Insurance
Optional Insurance is Not taxable as long as the insurance is not required and is separately stated
on the invoice. Vendors Single Interest Insurance and Guaranteed Automobile Protection (GAP)
insurance is strictly optional and at the discretion of the purchaser and is Not part of the sales price.
Some rental car companies add an additional five cents to the rental car surcharge. The additional
five cent charge is being passed on to the consumer for airport concession charges by the rental
companies and is not collected by the Department of Revenue.
Credit Card Discount Points
When points earned on a credit card (e.g., General Motors or Ford credit card) are redeemed for a
discount on a new vehicle purchase, the discount does not reduce the amount on which tax is
collected.

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 Section 12 Intangible Tax

Vehicle Financing
A nonrecurring intangible tax must be paid 30 days after the date of the financing if a dealer
provides motor vehicle financing, which is secured by a mortgage on real property, in the State of
Florida.
A mortgage document is completed by the borrower and lender describing the real property given
as collateral to secure the loan. The nonrecurring intangible tax is to be paid at the time the
document is recorded in the county where the real property is located along with the documentary
stamp tax.

Example: A vehicle is financed for 36 months. Total selling price is $10,000. A down
payment of $2,000 is made and $8,000 is financed and secured by a lien on real property
located in Florida. The nonrecurring intangible tax on this loan is due at the time the loan is
made and must be paid 30 days after the making of the loan. The amount of tax is $16 ($2
per thousand).

Section 13 Documentary Stamp Tax

Documentary Stamp Tax

Documentary stamp tax is levied on promissory notes and written obligations to pay money, which
are executed or delivered in Florida.

Documents subject to tax include but are not limited to:

• Promissory notes
• Retain title contracts
• Master notes made in connection with a line of credit
These documents are subject to documentary stamp tax when used by a dealer to purchase motor
vehicles or when used by a customer purchasing a motor vehicle from a dealer.
Tax is due when the contract is signed by the purchaser. The tax rate is 35 cents per $100, or
fraction of $100, based on the amount financed. Please note that this tax is due on pickup
payments.

Example: A customer purchases a motor vehicle for $15,000 and has a down payment of
$2,000 and a trade-in of $1,050. The purchaser finances $11,950. Tax is due on the $11,950 at
the rate of 35 cents per $100, or fraction of $100, for a total of $42.

Less Than Five (5) Transactions

Any dealer with less than 5 taxable transactions per month is not required to register with the
Department, but is required to report and pay the documentary stamp tax due directly to the
Department. The dealer is required to use the Documentary Stamp Tax Return for Nonregistered
Taxpayers’ Unrecorded Documents (Form DR-228) to file the tax due. The tax return must be filed

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in the month following the date of the transaction. A copy of the tax return must be kept with the
taxable documents. The canceled check serves as the receipt of payment.
Five (5) or More Transactions
Any dealer with 5 or more taxable transactions per month is required to register the location where
the documents and records are kept, with the Department of Revenue. The form used for
registration is the Application to Collect and/or Report Tax in Florida (Form DR-1). The tax is to be
reported on the Documentary Stamp Tax Return for Registered Taxpayers’ Unrecorded Documents
(Form DR-225).
The tax return must be filed by the 20th day of the month following the month of the transaction. A
copy of the tax return must be kept with the taxable documents.
Delinquency Penalty
Failure to timely file the return and pay any taxes due will result in a delinquency penalty. The
delinquency penalty is 10 percent of the tax due for each month, or fraction of a month, not to
exceed 50 percent, for each month the return is late. The penalty for failing to file a timely return
shall be a minimum of $10.
Interest
A floating rate of interest applies to underpayments and late payments of tax. The rate is updated
January 1 and July 1 of each year by using the formula established in s. 213.235, F.S. To obtain
interest rates, visit our Internet site at www.myflorida.com/dor.

Section 14 Corporate Income Tax

Some motor vehicle dealers may need to file a Florida Form F-1120, the Florida corporate income
tax return. Returns are required by any taxpayer liable for tax or required to file a federal corporate
tax return, whether or not tax is due. S corporations are not required to file a Florida corporate
income tax return if they do not have federal taxable income. Generally, the returns are due on or
before the first day of the fourth month after the taxable year-end. Taxpayers may request a 6-
month extension to file the return.
The tax base for corporate income tax is the federal taxable income, which is modified by certain
additions, and subtractions to arrive at the Florida adjusted federal income. If the dealer is doing
business solely within Florida, 100 percent of the adjusted federal taxable income is subject to the
tax. Taxpayers doing business within and without the state apportion the adjusted federal income
by the three-factor formula. Effective for tax years on or after January 1, 2012, each taxpayer or
taxpayer group is allowed up to a $25,000 exemption from Florida net income per taxable year.
The tax rate is 5.5 percent.

Section 15 Reemployment Tax

Reemployment Tax
Effective July 1, 2012, the Department will begin implementing the 2012 legislation that renames
“unemployment tax” to “reemployment tax.” Throughout the remainder of the year, you will see
changes to forms, brochures, web pages, and other publications.
The Reemployment Assistance Program provides partial temporary income to workers who lose their
jobs through no fault of their own, and are able and available for work. Employers pay Florida
reemployment tax as a cost of doing business. Workers do not pay any portion of this tax and
employers may not make payroll deductions for it. Employers file reports and pay tax quarterly.

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Generally, you will be required to report wages and pay reemployment tax if you:
• Paid $1,500 or more in wages within a calendar quarter.
• Have one or more employees for any portion of a day in 20 different weeks in a calendar year.
• Are liable for federal reemployment tax.

Definitions Used in Reemployment Tax

The following definitions will aid you in understanding who should be considered employees.

Employment - Any service performed by an employee for the person employing that individual.
Employee - A person who is subject to the will and control of the employer not only as to what
shall be done, but how it shall be done.
Casual Labor - Work performed that is not in the course of the employer's regular trade or
business and which is occasional, incidental, or irregular. Casual labor should not be confused with
temporary or part-time employment. A corporation cannot have casual labor, as covered in the
Internal Revenue Code of Regulations.
Independent Contractor - One who is not subject to the will and control of the employer. The
employer does not control or direct the manner or method of job performance. The general public
knows the independent contractor as such.
Officers of a Corporation - Any officer of a corporation performing services for the corporation is
an employee of the corporation during tenure of office, regardless of whether compensation for
such services is received. Compensation, other than dividends on shares of stock and board of
director fees, shall be presumed to be payment for services performed.
Limited Liability Company (LLC) - A person who is a member of an LLC that is classified as a
corporation for federal income tax purposes and who performs services for the LLC is deemed an
employee. A limited liability company shall be treated as having the same status as it is classified
for federal income tax purposes. (Single Member = Sole Proprietor, Multi Member = Partnership,
Corporation = Corporation, and we will determine their liability accordingly.)
S Corporation - Salaries paid to corporate officers are considered wages. All or part of the
distribution of income paid to corporate officers who are active in the business and are performing
services for the business can be considered wages.
Employee Leasing Company - An employee leasing company is an employing unit that
maintains a valid and active license under Chapter 468, Florida Statutes.
Salesperson - Any individual paid solely by commission under your direction and control is an
employee. The law provides specific exemption only for insurance agents, real estate agents, and
barbers who are paid solely by commission. If they are paid by salary only or salary and
commission, both are taxable and the exemption does not apply. There is no federal unemployment
tax exemption for barbers paid solely by commission.
Wages
Wages are all payments for services in employment, including commissions, bonuses, back pay
awards, and the cash value of all payments in any medium other than cash. The cash value of
meals and lodging will be exempt if it is included as a condition of employment for the convenience
of the employer.

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Sick and accident disability payments paid by an employing unit to an employee in the six calendar
months after the calendar month the employee stopped working are wages. Payments made under
a workers' compensation law are not wages. Tips are covered wages if received while performing
services that constitute employment and are included in a written statement furnished by the
employee to the employer.
Reporting Wages
During the last week of each quarter, a preprinted Employer's Quarterly Report (Form UCT-6) is
mailed to each liable employer, except those obligated to file electronically or annually.
Failure to receive the form does not relieve the employer of the responsibility to file. The tax report
must include total wages paid to covered workers, excess wages, taxable wages, and tax due. The
wage report must include each employee's name, social security number, and total wages paid
during the period. If an employer is operating two business units and the secondary unit(s) has a
cumulative total of at least ten employees, a Multiple Worksite Report (Form BLS-3020) must be
submitted.
Important to Report Timely
Employers have one month after the end of each quarter to file reports and pay tax. To avoid
penalty and interest, you must report and pay your tax on time. Unpaid tax may also affect your
future tax rate. Reports and payments sent by mail are considered filed and paid as of the postmark
date.
Late Filing Penalty
Late filing penalty is charged at the rate of $25 per month or fraction of a month that a report is
delinquent. Interest charges are added beginning with the second delinquent month, and are
charged at 1 percent per month on the unpaid tax from the original due date until the tax is paid.
Electronic Filing and Payment
Employers are required to file Form UCT-6 and pay the tax electronically if they employed ten or
more employees in any quarter during the preceding state fiscal year (July 1 - June 30).
In addition, any person who prepared and filed unemployment tax reports for 100 or more
employers in any quarter during the preceding state fiscal year (July 1 - June 30) must also file
current year reemployment tax reports by electronic means.
The penalty for failure to file a report by electronic means is $50 plus $1 per employee. The penalty
for failure to pay the tax electronically is $50 for each remittance. You can obtain a waiver from
electronic filing if you have a valid business reason. There is no waiver from electronic payment.
Tax Rate
The tax rate for new employers is .0270 (2.7 percent). The first $8,000 in wages paid to each
employee during a calendar year is taxable. Any amount over the $8,000 is considered excess
wages and is not subject to tax. Excess wages can never be greater than gross wages.
When a business is transferred, the successor may count wages paid to an employee by the
predecessor when determining the taxable wage figure. The wages of employees who work in
another state and are transferred to Florida are counted when calculating taxable wages reportable
to Florida.
Tax Rate Calculation
When a new employer becomes liable for the payment of tax, the tax rate is .0270 (2.7 percent) and
will not change until the employer has reported enough quarterly data to establish an earned tax
rate. The account will then be rated by dividing the total benefits charged to the account by the
taxable payroll reported for the specific period immediately preceding the quarter for which the rate
is effective.

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The one exception would be those employers liable by succession and who choose to accept the
tax rate of the predecessor with the accompanying responsibility of paying any outstanding
indebtedness due. At that time, a tax rate will be calculated based on the employment record and
the rating factors, which are built into the Unemployment Compensation Law. The maximum tax
rate allowed by law is .0540 (5.4 percent), except for employers participating in the Short Time
Compensation Program. Prior to the applicable year, rate notices are mailed to all employers that
have a tax rate. An appeal of the tax rate must be made within 20 days from the date of notification
(date printed on the rate notice).

Claims for Benefits

Unemployed workers who are covered under the Florida Unemployment Compensation Law may
receive benefits if they are eligible and fully qualified. Prompt and accurate information from
employers is essential to the establishment of a claimant's right to benefits. It is your responsibility
to furnish information timely when requested. This is to your advantage because it helps protect
your tax rate. Information should be complete, accurate, and factual.

Section 16 Miscellaneous Issues

Reports of Large Currency Transactions

The Florida Department of Revenue is required to provide data received on reports of large
currency transactions to the Florida Department of Law Enforcement.
Florida law requires an individual, corporation, partnership, trust, estate, association, or company
engaged in trade or business, except for those financial institutions that report to the State
Comptroller, that receives more than $10,000 in currency, including foreign currency, in one
transaction, or in two or more related transactions, to complete and file with the Florida Department
of Revenue the same information required under Title 26, United States Code, s. 60501 on Federal
Form 8300. A transaction includes the purchase of property or services, the payment of debt, the
exchange of negotiable instruments for cash, and the receipt of cash to be held in escrow or trust.
A single transaction may not be broken into multiple transactions to avoid reporting. For more
information, see s. 896.102, F.S., and Rule 12-19.005, F.A.C.
How to Report
A completed copy of the Federal Form 8300 will satisfy the state reporting requirements. In lieu of
filing Form 8300, a self-designed report may be used provided the report contains substantially the
same information as required on Form 8300. Federal Form 8300 may be obtained from the Internal
Revenue Service (IRS) Internet address, www.irs.ustreas.gov, or by calling the IRS forms line,
800-TAX-FORMS or 800-829-3676.
When to File
Large currency transaction reports must be filed with the Florida Department of Revenue no later
than 15 days after the date the transaction is required to be reported to the IRS. Generally, Federal

Form 8300 must be filed with the IRS within 15 days after receiving a payment(s) exceeding the
$10,000 threshold.
Where to File
File the form with: Florida Department of Revenue
P.O. Box 6609
Tallahassee, Florida 32314-6609

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Penalties
Any person who willfully fails to comply with these reporting requirements is guilty of a
misdemeanor of the first-degree, punishable as provided in s.775.082, F.S., or by a maximum fine
of $250,000, or by both imprisonment and fine. Second and subsequent convictions carry greater
fines. A copy of each large currency transaction report must be retained for five years from the date
of filing.

Section 17 Automobile Dealership Audits

The Department of Revenue audits taxpayers to ensure that Florida tax laws are being uniformly
enforced, deter tax evasion, promote voluntary compliance, and educate taxpayers. While most tax
returns are accepted as filed, returns are audited to verify accuracy and evaluate compliance.
A tax audit should be an educational experience that provides an understanding of your
responsibilities and rights under Florida tax laws. It should not be a frustrating, time-consuming
experience. Although an audit is an enforcement tool to ensure tax compliance, it can also help
businesses identify and correct bookkeeping problems that could cause additional tax liabilities. The
Department of Revenue wants to help taxpayers avoid penalties and interest that can result when
taxes are not paid correctly or on time.
Sales Issues
During the course of a sales and use tax audit, auditors will:
• Verify gross sales by checking general ledgers, sales journals, federal income tax returns,
bank records, and source documents.
• Determine all sales activity of the dealership, which typically includes new and/or used car
sales, car rentals, repair shop, parts department, body shop, vending machine sales, and
commercial rentals.
• Review all sales transactions to be sure the taxable base (net selling price) is calculated
correctly, considering trade-ins, dealer prep fees, etc., included in the deal. Consideration is
also given to the local option taxes, with the $5,000 cap applied to individual transactions.
• Determine if financing is done by the dealership, and check for documentary stamp tax
issues. Verify where receivables are held by the dealership on financed vehicles. Also verify
that the amount of documentary stamp tax purchased is in agreement with the volume of
financed sales.
• Verify documentation of exempt sales activities to verify accuracy of exempt sales status.
Determine that exempt sales affidavits exist for all vehicles delivered out of state, or sold to
exempt entities. Make sure all exempt sales are properly documented, including exemption
certificates and exemption permits.
Purchase Issues
Consumable supplies used in repair and body shops can be a problem. In many cases these
consumable supplies have been purchased tax-exempt and no use tax has been reported. These
items are consumed, rather than being resold, and are subject to use tax.
Fixed asset purchases are looked at in detail to make sure the proper tax was paid at the time of
purchase. General ledgers and federal tax returns are usually reviewed to determine the extent of
these types of purchases. Problems usually occur from purchases that were shipped in from out-of-
state untaxed, or exempted mistakenly for resale purposes, at the time they were purchased.
Purchase invoices are reviewed to determine proof of tax paid.

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Depending on the volume of transactions, expense purchases are usually sampled to determine the
amount of additional tax liability. Operating expenses involving consumable tangible personal
property are looked at to determine if they were properly taxed at the time of purchase, or, if use tax
was properly accrued when consumed in the operation of the dealership. Invoices for all purchases
will be reviewed to determine proof of tax paid. The volume of expense purchases will determine
whether the auditor uses a “sampling” audit technique or all purchase invoices are reviewed.
Commercial Rental Issues
Commercial rental tax liabilities are common at automobile dealerships. There are issues involving:
• Taxable income from land subleased by the business.
• Land leased from the dealership owner to the dealership untaxed.
• Additional consideration for right-to-occupy the premises, such as real property taxes paid on
behalf of the land owner.
• Any payments made on behalf of the land owner for the benefit of the land owner.

General ledgers, federal tax returns, and lease agreements are reviewed in detail to determine the
taxable commercial realty rental transactions involving the dealership, both as a tenant and/or
landlord.
Criminal Investigations
The Department of Revenue investigates taxpayers to ensure that Florida tax laws are being
uniformly enforced, deter tax evasion, and promote voluntary compliance.
During the last five years, the Florida Department of Revenue referred hundreds of automotive
industry related cases for prosecution. Each case involved one or more defendants and collectively
represented tens of millions of dollars in stolen tax, penalties, and interest. In addition to criminal
charges, individual assessments were asserted against criminally responsible parties. Historical
judicial dispositions include, but have not been limited to, incarceration, community control, house
arrest, probation, pre-trial intervention, and court ordered restitution.
Some examples of sources used to identify potential investigations:
• Internal referrals from Department of Revenue processes such as Audit and Collections.
• External referrals from other local, state, and federal agencies.
• Complaints received from anonymous and confidential sources.
• Complaints received from the general public.
• Information received from other local, state, and federal agencies.
• Internal Department of Revenue information.

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 DR-11N
Certificate of Registration R. 11/11

Issued Pursuant to Chapter 212, Florida Statutes

Certificate Number Registration Effective Date Opening Date Filing Status

This certifies that

Sample
has met the sales and use tax registration requirements for the business location stated above as required by Florida law.
This certificate is non-transferable.
Post This Certificate in A Conspicuous Place

DR-11N
Florida Sales and Use Tax R. 11/11
Important Facts to Remember

1. Your sales and use tax certificate number has an INACTIVE filing status.

2. You will not receive Sales and Use Tax Returns (Form DR-15), unless your filing status changes to an active
status.

3. You will not receive an Annual Resale Certificate (Form DR-13) since your certificate number has an inactive
filing status.

4. This Certificate of Registration does not entitle you to purchase or rent property or services tax-exempt for
resale.

5. You may not extend this certificate number to your suppliers in lieu of paying sales tax.

6. Each location at which you do business must have a separate Certificate of Registration.

7. It is your responsibility to notify the Department if you have any changes in your business (new location, new
mailing address, or change of legal entity).

8. Always refer to your certificate number or business partner number when communicating with the Department.

9. Before making any sales from, or purchases for, the above location, you must contact the Department and
request that the filing status be changed to ACTIVE, unless you have prior approval from the Department.

If you require additional information or assistance, please see the "Contact Us" section on the next page.

165
 Business Partner Number

Use this number when contacting the

Department.

Sample

Contact Us

Information, forms, and tutorials are available on our Internet site:

www.myflorida.com/dor

To speak with a Department representative, call Taxpayer Services, Monday through Friday, 8 a.m. to
7 p.m., ET, at 800-352-3671.

To find a taxpayer service center near you, go to: www.myflorida.com/dor/contact.html

For written replies to tax questions, write to:

Taxpayer Services - Mail Stop 3-2000
Florida Department of Revenue
5050 W Tennessee St
Tallahassee FL 32399-0112

Subscribe to our tax publications to receive due date reminders or an e-mail when we post:
• Tax Information Publications (TIPs).
• Facts on Tax, a quarterly publication.
• Proposed rules, notices of rule development workshops, and more.
Go to: www.myflorida.com/dor/list/

166
 DR-14
Consumer's Certificate of Exemption R. 04/11
Issued Pursuant to Chapter 212, Florida Statutes

Certificate Number Effective Date Expiration Date Exemption Category

This certifies that

Sample
is exempt 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.

DR-14
Important Information for Exempt Organizations R. 04/11

1. You must provide all vendors and suppliers with an exemption certificate before making tax-exempt purchases.
See Rule 12A-1.038, Florida Administrative Code (F.A.C.).

2. Your Consumer’s Certificate of Exemption is to be used solely by your organization for your organization’s
customary nonprofit activities.

3. Purchases made by an individual on behalf of the organization are taxable, even if the individual will be
reimbursed by the organization.

4. This exemption applies only to purchases your organization makes. The sale or lease to others of tangible
personal property, sleeping accommodations, or other real property is taxable. Your organization must register,
and collect and remit sales and use tax on such taxable transactions. Note: Churches are exempt from this
requirement except when they are the lessor of real property (Rule 12A-1.070, F.A.C.).

5. It is a criminal offense to fraudulently present this certificate to evade the payment of sales tax. Under no
circumstances should this certificate be used for the personal benefit of any individual. Violators will be liable for
payment of the sales tax plus a penalty of 200% of the tax, and may be subject to conviction of a third-degree
felony. Any violation will require the revocation of this certificate.

6. If you have questions regarding your exemption certificate, please contact the Exemption Unit of Account
Management at 800-352-3671. From the available options, select “Registration of Taxes,” then “Registration
Information,” and finally “Exemption Certificates and Nonprofit Entities.” The mailing address is PO Box 6480,
Tallahassee, FL 32314-6480.

167
 DR-16P
Sales and Use Tax Direct Pay Permit R. 09/11
Rule 12A-1.097
Florida Administrative Code
Issued Pursuant to Chapter 212, Florida Statutes Effective 01/12

Permit Number Effective Date Expiration Date Self-Accrual Authority Type

The entity named below has met the requirements for self-accrual authority as indicated above.

Business Partner #:

Sample
This permit authorizes the holder to self-accrue the sales tax due as defined in Chapter 212, Florida Statutes (F.S.),
and described below.
Authorized Uses of the Direct Pay Permit
Apportionment (APP) Promotional Materials (PRO)
3 The apportionment of tax by eligible air carriers for the 3 The purchase of promotional materials, as defined in
purchase or use of tangible personal property, as provided s. 212.06(11)(b), F.S., by dealers who are unable
in section (s.) 212.0598, F.S. to determine at the time of purchase whether the
3 The partial exemption applicable to vessels and parts promotional materials will be used in this state (Florida)
thereof used in interstate or foreign commerce for the or exported from this state only when the seller of
purchase of vessels and parts thereof, as provided promoted subscriptions to publications sold in this state
in s. 212.08(8), F.S., and Rule 12A-1.0641, Florida is a registered dealer and is remitting sales tax to the
Administrative Code (F.A.C.). Department on publications sold in this state. The dealer
3 The partial exemption applicable to railroads and parts purchasing and distributing promotional materials and the
thereof used in interstate or foreign commerce by licensed seller of the promoted subscriptions to publications are
railroad carriers for purchases of tangible personal not required to be the same person.
property, as provided in s. 212.08(9)(a), F.S., and Rule
12A-1.064, F.A.C. Real Property Leases (RPL)
3 The partial exemption applicable to motor vehicles and 3 The lease or license to use real property subject to tax
parts thereof used in interstate or foreign commerce by under s. 212.031, F.S., by dealers who are required
licensed common carriers, as provided in to remit sales tax electronically, as provided under
s. 212.08(9)(b), F.S., and Rule 12A-1.064, F.A.C. s. 213.755, F.S., from a number of independent owners or
lessors of real property.
Purchases of Tangible Personal Property (TPP) 3 The lease of or license to use real property subject
3 The lease or purchase of tangible personal property by to the tax imposed by s. 212.031, F.S., by a dealer who
dealers who annually purchase in excess of $10 million leases or obtains licenses to use real property from a
of taxable tangible personal property in any county for number of independent property owners who, except
the dealer’s own use. for the lease or license to the dealer, would not be
3 The lease or purchase of tangible personal property required to register as dealers engaged in the business of
by dealers who annually purchase at least $100,000 leasing real property.
of taxable tangible personal property, including 3 The lease or license to use real property subject to
maintenance and repairs for the dealer’s own use, when the tax imposed by s. 212.031, F.S., by operators of
the taxable status of the property will only be known by amusement machines or vending machines who lease
its use. The taxable status of the property will be known or obtain licenses to use real property from property
by its use when the dealer’s normal trade or business owners or lessors for the purpose of placing and operating
characteristics require the dealer to purchase tangible an amusement or vending machine.
personal property that will either become a component
part of a product manufactured for sale or will be used
and consumed by the dealer.

168
 General Information for All Direct Pay Permit Holders

1. Each permit holder must have a valid dealer’s Sales 6. Reporting requirements:
and Use Tax Certificate of Registration (Form DR-11
Every holder of a Sales and Use Tax Direct Pay
or DR-11U). Upon cancellation of a certificate
Permit shall file with the Department, by
of registration, this permit must be canceled and

Sample
September 30 of each year, a report showing the
surrendered.
amount of total purchases by county for the period
of September 1 through August 31 of the prior year,
2. Permit holders must provide a copy of this permit
and the amount of use tax self-accrued on such
to all dealers of tangible personal property and
purchases by county. This report should be mailed
services, in order to relieve the selling dealer from
to Account Management, Florida Department of
the responsibility of collecting tax.
Revenue, P.O. Box 6480, Tallahassee FL 32314-6480.
3. Permit holders are required to file tax returns
7. This permit expires five years from the effective
according to their filing frequency and pay to the
date listed on the permit. The Department will
Department the amount of sales and use tax due on
provide a renewal notice to the permit holder 60
transactions for which this permit was extended.
days prior to the expiration date of the permit.
4. A tax return must be filed, according to the filing A person who does not receive a renewal
frequency, even if no tax is due. notice or needs more information regarding
the notice may contact Account Management,
5. Recordkeeping requirements: Florida Department of Revenue, P.O. Box 6480,
Tallahassee FL 32314-6480.
a. Every holder of a Sales and Use Tax Direct
Pay Permit is required to keep and preserve In the event the original Sales And Use Tax Direct Pay
all information and documentation necessary Permit is lost or destroyed, the permit holder may
to substantiate the holder’s authorization for obtain a replacement by visiting any local Department
the permit. The holder is also required to of Revenue service center or calling the Department
document the payment of all tax due on its at 800-352-3671. Persons with hearing or speech
purchases of tangible personal property and impairments may call our TDD at 800-367-8331 or
services until such time as the taxes imposed 850-922-1115. Send written requests to Account
and administered by Chapter 212, F.S., may Management, Florida Department of Revenue,
no longer be determined and assessed under P.O. Box 6480, Tallahassee FL 32314-6480.
s. 95.091(3), F.S.

b. A dealer of tangible personal property and

services is not required to collect sales and use
tax, as identified on the direct pay permit, on
sales made to the permit holder. The dealer
shall keep a copy of the permit in their records
until the taxes imposed and administered by
Chapter 212, F.S., may no longer be determined
and assessed under s. 95.091(3), F.S.

c. Electronic storage of all required records through

use of imaging, microfiche, or other electronic
storage media will be sufficient compliance with
the provisions of this subsection.

169
SECTION3

Q15: Motor Vehicle Dealers are responsible to:

A. Direct the customer to the nearest Department of Revenue Office so they can pay there.
B. Collect, report, file, and pay Florida taxes timely and accurately

Q16: A dealer located in Florida must obtain all the below except:
A. A Certificate of Registration (Form DR-11)
B. An Annual Resale Certificate (Form DR-13)
C. An Nola-Contender Certificate (Form DR-0719)

Q17: It is OK for the dealer to absorb the Sales Tax charges on behalf of the customer:
A. True.
B. False.

Q18: When the sale and trade-in are accomplished in one transaction the trade-in allowance shall be deducted
from the gross sales price to determine the taxable base.
A. True.
B. False.

Q19: Solid waste fees listed below are all true, EXCEPT:
A. $1.00 for each new tire.
B. $1.50 for each recapped tire.
C. $1.50 for each new or re-manufactured lead-acid battery.

170
Section 4

Motor Vehicle
Sales Finance

171
 Motor Vehicle Sales Finance

Definitions:

"Cash Price" means the price at which a seller, in the ordinary course of business, offers to sell
for cash the property or service that is the subject of the transaction. At the seller's option, the
term "cash price" may include the price of accessories, services related to the sale, service
contracts, and taxes and fees for license, title, and registration of the motor vehicle. The term
"cash price" does not include any finance charge.

"Down Payment" means the amount, including the value of any property used as a trade-in, paid
to a seller to reduce the cash price of goods or services purchased in a credit sale transaction. A
deferred portion of a down payment known as a "pick-up payment" may be treated as part of a
down payment if it is payable not later than the due date of a second otherwise regularly
scheduled payment and is not subject to a finance charge.

NOTE: Pick-up payments have additional legal requirements that must be met.

- 0% Interest.
- Max 4-Payments.
- Must receive total amount owed no later than payment # 2nd on the main finance payment.
- Documentary tax of 35 cents per hundred is due on the pick-up payment just like it is due
on the amount financed.

"Finance Charge" means the cost of consumer credit as a dollar amount. The term "finance
charge" includes any charge payable directly or indirectly by the buyer and imposed directly or
indirectly by the seller as an incident to or a condition of the extension of credit. The term
"finance charge" does not include any charge of a type payable in a comparable cash transaction.

"Holder" of a retail installment contract means the retail seller of a motor vehicle retail
installment contract or an assignee of such contract.

"Motor Vehicle Retail Installment Seller" or "Seller" means a person engaged in the business
of selling motor vehicles to retail buyers in retail installment transactions.

"Official Fees" means fees and charges prescribed by law which actually are or will be paid to
public officials for determining the existence of, or for perfecting, releasing, or satisfying, any
security related to the credit transaction, or the premium payable for any insurance in lieu of
perfecting any security interest otherwise required by the creditor in connection with the
transaction, if the premium does not exceed the fees and charges which would otherwise be
payable to public officials.

172
"Retail Buyer" or "Buyer" means a person who buys a motor vehicle from a seller not
principally for the purpose of resale, and who executes a retail installment contract in connection
therewith or a person who succeeds the rights and obligations of such person.

"Retail Installment Contract" or "Contract" means an agreement, entered into in this state,
pursuant to which the title to, or a lien upon the motor vehicle, which is the subject matter of a
retail installment transaction, is retained or taken by a seller from a retail buyer as security, in
whole or part, for the buyer's obligation. The term includes a conditional sales contract for the
bailment or leasing of a motor vehicle by which the bailee or lessee contracts to pay as
compensation for its use a sum substantially equivalent to or in excess of its value and by which it
is agreed that the bailee or lessee is bound to become, or for not further or merely nominal
consideration, has the option of becoming, the owner of the motor vehicle upon full compliance
with the provision of the contract.

"Retail Installment Transaction" means any transaction evidenced by a retail installment

contract entered into between a retail buyer and a seller wherein the retail buyer buys a motor
vehicle from the seller at a deferred payment price payable in one or more deferred installments.

"Sales Finance Company" means a person engaged in the business of purchasing retail
installment contracts from one or more sellers. The term includes, but is not limited to, a bank or
trust company, if so engaged. The term does not include the pledge of an aggregate number of
such contracts to secure a bona fide loan agreement.

License Requirements:

The Office of Regulation within the Florida Department of Services issues licenses to motor
vehicle dealers who will be financing their own retail sales. These dealers will need a Motor
Vehicle Retail Installment Seller's License. They also issue licenses to finance companies that
finance the purchase of vehicles for buyers or purchase installment sales contracts from motor
vehicle dealers. Those companies need a Sales Finance license.

Who Needs A License?

Any dealer who takesatleastonedeferredpayment for the purchase of a motor vehicle orassigns a
retailinstallmentcontract to a sales finance company musthave a Motor Vehicle Retail Installment
Seller's License. Itdoesnotmatterwhetherornotyouasadealerchargeinterestor anytypeoffinance
chargeforthepurchaseofthevehicle. If you intend to operate a "buy here/ pay here" business you will
need this license. If you intend to execute a retail installment sales contract between yourself as a
seller and a retail buyer and then assign that contract to a sales finance company, you will need this
license.

How Do I Obtain A License?

Obtaining a Motor Vehicle Retail Installment Seller's License is relatively easy. Be sure to
request the appropriate license. You request an application through this department's website.
Once you receive your dealer license from the state, go to www.flofr.com/finance/ to apply.

173
You will choose MOTOR VEHICLE RETAIL INSTALLMENT SELLER. Complete the
next couple of pages to apply for this license. Your finance license will be emailed to you. YOU
MAY NOT DO ANY BUSINESS REQUIRING THIS LICENSE UNTIL YOU RECEIVE
THIS LICENSE AND POST IT AT YOUR DEALERSHIP.

NOTE: A common and expensive mistake the new dealer makes is he/she forgets to do this part!
As soon as you receive your dealer license go immediately to your computer, open the site listed
above, choose MOTOR VEHICLE RETAIL INSTALLMENT SELLER and complete the
application process.

NOTE: This site is very well done and contains a wealth of information about this license and
other licenses the dealer may wish to pursue. Statutes and Administrative Rules are also readily
available at this site.

See Exhibit FR- 1 for a listing of the Area Offices throughout the state.

Application Process:

Complete the application with a $175 dollar fee. The fee for the license is non-refundable.
If approved, the license will be Emailed to the dealer's Email address.

License Certificates:

The license certificate issued by the Department must be conspicuously displayed at the
specified location where the dealer is conducting business. The dealer must transact business
only under the name in which the license has been issued. A single license may be issued to a
dealer operating in a single county regardless of branch locations; however, an additional license
is needed if the dealer operates in another county. If a dealer changes his principal place of
business, he must notify the department for an address change. There is no fee for an address
change.

License Periods:

There is a biennial license period wherein the license period begins on January 1 of each odd
numbered year and expires on December 31 of each even numbered year.

License Renewals:

Each licensee will receive a renewal notice in November of the renewal year. The fee to renew
the license is $175. A dealer who fails to renew will have their license revert to "inactive" status.
The license may be reactivated within 6 months of the expiration date by submitting a
reactivation form and a fee of $175. A license that is not reactivated within six months after
becoming inactive may not be reactivated.

Retail Installment Contracts: Requirements and Prohibitions

174
- A retail installment contract shall be in writing, and shall be signed by both the buyer and the
seller. The contract shall be completed as to all essential provisions prior to signing.
- The printed portion of the contract, other than instructions for completion, shall be in at least
6-point type.
- The contract shall contain:
1. A specific statement that liability insurance coverage for bodily injury and property
damage caused to others is not included, if that is the case.
2. The following notice in substantially this form:

Notice to the Buyer

a. Do not sign this contract before you read it or if it contains any blank spaces.

b. You are entitled to an exact copy of the contract you sign. Keep it to protect your legal rights.

(c) The seller shall deliver to the buyer, or mail to the buyer at his or her address shown on the
contract, a copy of the contract signed by the seller. Before the transaction is consummated, a copy
of the retail installment contract, or a separate statement by which the disclosures required by this
section are made and on which the buyer and seller are identified, shall be delivered to the buyer.
Until the seller has delivered or mailed to the buyer a copy of the retail installment
contract, a buyer who has not received delivery of the motor vehicle shall have the right to rescind
the agreement and to receive a refund of all payments made and return of all goods traded in to
the seller on account of or in contemplation of the contract or, if such goods cannot be returned,
the value thereof. Any acknowledgment by the buyer of delivery of a copy of the contract, if
contained in the contract, shall appear directly above or adjacent to the buyer's signature.

(d) The contract shall contain the names of the seller and the buyer, the place of business of the
seller, the residence or place of business of the buyer as specified by the buyer, and a description
of the motor vehicle including its make, year model, and model and identification number or
marks.

(2) The contract shall contain the following:

(a) Amount financed.—The "amount financed," using that term, and a brief description such as
"the amount of credit provided to you or on your behalf." The amount financed is calculated by:

1. Determining the cash price, and subtracting any down payment;

2. Adding any other amounts that are financed by the creditor and that are not part of the finance
charge, including any additional amount financed in a retail installment contract to discharge a
security interest, lien, or lease interest on a motor vehicle traded in connection with the contract;
and

3. Subtracting any prepaid finance charge.

(b) Finance charge.—The "finance charge," using that term, and a brief description such as "the
dollar amount the credit will cost you."

175
(c) Total of payments.—The "total of payments," using that term, and a descriptive explanation
such as "the amount you will have paid when you have made all scheduled payments."

(d) Total sale price.—In a credit sale, the "total sale price," using that term, and a descriptive
explanation, including the amount of any down payment, such as "the total price of your purchase
on credit, including your down payment of $ ." The total sale price is the sum of the cash
price, the items described in subparagraph (a)2., and the finance charge disclosed under paragraph
(b).
(e) The number of scheduled payments, the amount of each payment, and the date of the first
payment.

Except for the requirement in subsection (3) that a separate written itemization of the amount
financed be provided, a contract which complies with the federal Truth in Lending Act, 15 U.S.C.
ss. 1601 et seq., or any accompanying regulations shall be deemed to comply with the provisions of
this subsection and subsection (3). However, in any proceeding to enforce the provisions of this
section, the burden of alleging and proving compliance with the federal Truth in Lending Act
shall be on the party claiming compliance.

(3) The seller shall provide a separate written itemization of the amount financed, which
itemization shall disclose the following:

(a) The cash price;

(b) The amount of down payment;

(c) The difference between the amounts disclosed under paragraphs (a) and (b);

(d) The amounts, if any, included for insurance and other benefits, specifying the types of
coverages and benefits; and

(e) Any taxes and official fees not included in the cash price.

The itemization required by this subsection may appear on a disclosure statement separate from
all other material, or it may be placed on the same document with the contract or other
information so long as it is clearly and conspicuously segregated from everything else on the
document.

(4) The amount, if any, included for insurance which may be purchased by the holder of the retail
installment contract may not exceed the applicable premiums chargeable in accordance with the
rates filed with the Department of Insurance. If dual interest insurance on the motor vehicle is
purchased by the holder, it shall, within 30 days after execution of the retail installment contract,
send or cause to be sent to the buyer a policy or policies or certificate of insurance, written by an
insurance company authorized to do business in this state, clearly setting forth the amount of the
premium, the kind or kinds of insurance, the coverages, and all the terms, exceptions, limitations,
restrictions, and conditions of the contract or contracts of insurance. Nothing in this act shall impair
or abrogate the right of a buyer, as defined herein, to procure insurance from an agent and company
of his or her own selection as provided by the insurance laws of this state; and nothing contained in

176
this act shall modify, amend, alter, or repeal any of the insurance laws of the state, including any
such laws enacted by the 1957 Legislature.

(5) If any insurance is canceled, or the premium adjusted, unearned insurance premium refunds
received by the holder and any unearned finance charges thereon shall, at his or her option, be
credited to the final maturing installments of the contract or paid to the buyer, except to the extent
applied toward payment for similar insurance protecting the interests of the buyer and the holder, or
either of them. The finance charge on the original transaction shall be separately computed:

(a) With the premium for the canceled or adjusted insurance included in the "amount financed";
and

(b) With the premium for the canceled insurance or the amount of the premium adjustment
excluded from the "amount financed."

The difference in the finance charge resulting from these computations shall be the portion of the
finance charge attributable to the canceled or adjusted insurance, and the unearned portion thereof
shall be determined by the use of the rule of 78ths. "Cancellation of insurance" occurs at such time
as the seller or holder receives from the insurance carrier the proper refund of unearned insurance
premiums.

(6) The holder may, if the contract or refinancing agreement so provides, collect a delinquency
and collection charge on each installment in default for a period not less than 10 days in an
amount not in excess of 5 percent of each installment. In addition to such delinquency and
collection charge, the contract may provide for the payment of reasonable attorney's fees when
such contract is referred for collection to an attorney not a salaried employee of the holder of the
contract, plus the court costs.

(7) No retail installment contract shall be signed by any party thereto when it contains blank
spaces to be filled in after it has been signed, except that, if delivery of the motor vehicle is not
made at the time of the execution of the contract, the identifying numbers or marks of the motor
vehicle or similar information and the due date of the first installment may be inserted in the
contract after its execution. The buyer's written acknowledgment, conforming to the
requirements of paragraph (1)(c), of delivery of a copy of a contract shall be presumptive proof
of such delivery, that the contract when signed did not contain any blank spaces except as herein
provided, and of compliance with this section in any action or proceeding by or against t he
holder of the contract.

(8)(a) Upon written request from the buyer, the holder of a retail installment contract shall give or
forward to the buyer a written statement of the dates and amounts of payments and the total
amount unpaid under such contract. A buyer shall be given a written receipt for any payment when
made in cash.

(b) When a motor vehicle retail installment contract is paid in full, the holder shall ensure that the
contract or title reflects that the lien has been satisfied or released and shall ensure that evidence of
satisfaction is provided to the borrower or payor.

177
(9) The department may order a seller to refund any amounts assessed and charged on a retail
installment contract which exceed the maximum charges provided by this act or by rules of the
department.

(10) A retail installment contract may provide that if a buyer rejects or revokes acceptance of
the motor vehicle and asserts a security interest in the motor vehicle based on the ground of
rightful rejection or justifiable revocation, the buyer must take one of the following actions:

(a) Post a bond in the amount of the disputed balance; or

(b) Deposit all accrued, and thereafter accruing, installment payments into the registry of a court
of competent jurisdiction.

The cost of a bond posted under this subsection is awardable to the buyer in the proceedings.
When the provisions of chapter 681 apply, this subsection shall not apply.

Finance Charge Limitations

The finance charge, exclusive of insurance, shall not exceed the following rates:

1. Class 1. Any new motor vehicle designated by the manufacturer by a year model
not earlier than the year in which the sale is made- $10 per $100 per year.
2. Class 2. Any new motor vehicle not in Class 1 and any used motor vehicle designated by
the manufacturer by a year model of the same or not more than 2 years prior to the year in
which the sale is made $11 per $100 per year.
3. Class 3. Any used motor vehicle not in Class 2 and designated by the manufacturer by a
model not more than 4 years prior to the year in which the sale is made- $15 per $100 per
year.

4. Class 4. Any used motor vehicle not in Class 2 or Class 3 and designated by the
manufacturer by a year model more than 4 years prior to the year in which the sale
is made-$17 per $100 per year.

These finance charges shall be computed on the amount financed on contracts

payable in successive monthly payments which are substantially equal in amount.
The finance charge may be computed on the basis of a full month for any fractional-
month period in excess of 10 days. A minimum finance charge of $25 may be
charged on any retail installment transaction. Under this method of computing
finance charges, the amount of the finance charge is added to the amount of the loan
and the total balance is reduced by the amount of the buyer's payment. This also
known as the "add-on method"

When a retail installment contract provides for unequal or irregular installment payments, the
finance charge may be at a rate which will provide the same yield as is permitted on monthly
payment contracts as stated previously.

178
Simple-interest Contracts

A retail installment contract under The Motor Vehicle Retail Sales Finance Act may provide that
the rate of finance charge be calculated on a simple-interest basis. In this case, the seller may
compute the finance charge on the unpaid balance as it changes from time to time. This is also
known as the "per diem" method of calculating interest. All contracts shall, by Federal Rule, state
the "annual percentage rate" or "APR" for the contract. The APR is the standard set forth by the
Federal Government which is the cumulative interest rate charged against the decreasing
outstanding balance of the note during its contracted term. If the buyer elects to pay off the
contract early, the buyer is entitled to a refund of prepaid interest, less an acquisition fee of $75 to
the holder of the contract if paid off within 6 months.

Miscellaneous Charges

Other than items and charges properly included as part of the cash price, the following are the only
charges permitted to be made by the retail installment seller. Such charges are permitted only to
the extent they are actually paid, used, or disbursed for the purposes stated.

1. Charges for taxes, prescribed by law, to the extent they are not included as part of the
cash price.
2. Charges for official fees and licenses as required by law. A dealer cannot make a profit
from official fees. Documentation must be kept to support these fees paid to government
agencies.
3. Charges for insurance purchased by the retail buyer to the extent such charges are not
included as part of the finance charge. The type of such insurance shall be specifically
noted on the contract.
4. Charges for other benefits such as service agreements or warranties bargained for and
purchased by the retail buyer to the extent that such purchases are supported in fact. The
type of such benefits shall be specifically noted on the contract and the holder shall
deliver to the buyer evidence of such benefits at the time the contract is signed and the
buyer shall receive a copy of the policy within 30 days from the date the contract was
signed.

Examinations

The Department of Services has the authority to examine the records of its licensees. Records
are examined based on annual selection, random choice and consumer complaints. Licensees are
required to maintain at their principal place of business such books, accounts and records of the
business conducted under its license. These records shall be preserved and available for
examination by the Department for at least 2 years after making the final entry and such records
must contain enough information for a determination by the Department that the licensee has
complied with the law. See Exhibit FS-2 for a sample of an "examination questionnaire" that
outlines the information the Examiner will be looking for during a routine examination.

179
 List of Exhibits

181
Exhibit FS-1: Department of Services Regional Offices ..............................

Exhibit FS-2: Examination Questionnaire .................................................... 183

189
Exhibit FS-3: Retail Installment Sales Contract... .......................................

180
 Exhibit FS-1

REGIONAL OFFICE COUNTIES SERVED

Broward
FORT LAUDERDALE
1400 West Commercial Boulevard,
Suite 135
Fort Lauderdale, FL 33309
Tel: 954-958-5508 SC 423-5508
Fax: 954-598-7138 SC Fax 423-
7138
Toll Free: 800-298-0485 (Florida Only)

Collier, Lee, Charlotte, Hardee,

FT MYERS
DeSoto
2295 Victoria Avenue Suite 170
Fort Myers, FL 33901
Tel: 239-461-4008 SC 748-4008
Fax: 239-338-2449 SC Fax: 7482449
Toll Free: 877-336-2445 (Florida Only)

JACKSONVILLE Alachua, Baker, Bradford, Clay,

921 N. Davis Street, Building B - Columbia, Dixie, Duval, Flagler,
Suite 225 Gilchrist, Hamilton, Jefferson,
Lafayette, Levy, Madison, Nassau,
Jacksonville, FL 32209 Putnam, Suwannee, St. Johns,
Tel: 904-798-5808 SC 826-5808 Taylor, Union.
Fax: 904-359-2687 SC Fax: 826-
2687
Toll Free: 888-434-3910 (Florida Only)

MIAMI Dade, Monroe

401 NW 2nd Ave., Suite N708
Miami, FL 33128-1796
Tel: 305-536-0308 SC 452-0308
Fax: 305-810-1100 SC Fax: 452-1100

ORLANDO Brevard, Lake, Marion, Orange,

400 W. Robinson St Osceola, Seminole, Sumter,
Hurston South Tower, S225 Volusia
Orlando, FL 32801-1799
Tel: 407-245-0608 SC 344-0608
Fax: 407-245-0806 SC Fax: 344-0806
Toll Free: 800-342-2247 (Florida Only)

PENSACOLA Bay, Calhoun, Escambia, Franklin,

4900 Bayou Blvd., Suite 103 Gadsden, Gulf, Holmes, Jackson,
Pensacola, FL 32503-2530 Leon, Liberty, Okaloosa, Santa
Rosa, W akulla, W alton,
Tel: 850-453-7908 SC 697-7908 Washington,
Fax: 850-494-7388 SC Fax: 690-7388

181
 Exhibit FS-1

Toll Free: 888-494-7380 (Florida Only)

TALLAHASSEE Baker, Bay, Bradford, Calhoun,

200 E. Gaines Street Clay, Columbia, Dixie, Duval,
Tallahassee, FL 32399 Escambia, Franklin, Gadsden,
Contact Us Gilchrist, Gulf, Hamilton, Holmes,
Jackson, Jefferson, Lafayette,
Leon, Levy, Liberty, Madison,
Nassau, Okaloosa, Santa Rosa,
Suwannee, Taylor, Union,
Wakulla, Walton, Washington

TAMPA Citrus, Hernando, Hillsborough,

1313 Tampa St., Suite 615 Manatee, Pasco, Pinellas,
Tampa, FL 33602-3394 Polk, Sarasota
Tel: 813-218-5308 SC 514-7008
Fax: 813-272-2498 SC Fax: 512-3427
Toll Free: 800-258-8403 (Florida Only)

WEST PALM BEACH Glades, Hendry, Highlands, Indian

3111 South Dixie Highway, Suite 302 River, Martin, Palm Beach,
W. Palm Beach, FL 33405 Okeechobee, St. Lucie
Tel: 561-837-5203 SC 252-5203
Fax: 561-837-5030 SC Fax: 252-5030
Toll Free: 800-837-7946 (Florida Only)

182
 Exhibit FS-2

DEPARTMENT OF SERVICES Office of

Regulation
BUREAU OF FINANCE REGULATIONS

CHAPTER 520, Florida Statutes

RETAIL INSTALLMENT SALES ACT

EXAMINATION QUESTIONNAIRE

Company Name: Street

Address: Mailing
Address: License
Number: Examination
Number: EAT
Number:
Date(s) of Last Examination:
Examination Period:
Examination Dates:
Number of Contracts Written
Purchased in Examination Period: RS MV HI
Amount Outstanding: RS MV HI
Number or Name on Last Contract
Written/Purchased in Exam Period: RS MV HI
No. of Contracts Examined: RS MV HI
During Examination Period: RS MV HI
Percent of Prepaid Accts Examined: RS MV HI
Manager:

183
 YES NO

Part I - MV Motor Vehicle Sales Finance

1. Was the motor vehicle seller and branch location(s)

properly licensed? (Ref: Subsections 520.03(1) and
520.12, F.S.; Rules 3D-50.055 and 3D-50.058, FAC)
2. Was the license conspicuously displayed?
(Ref: Subsection 520.03(4), F.S.)
3. Was the seller doing business under its licensed name
and location? (Ref: Subsection 520.03(4), F.S.)
4. Was the Department notified on any address change since
last examination? (Ref: Subsection 520.03(4), F.S.)
5. Was the contract in compliance with statutory requirements
including the proper "Notice to Buyer"
(Ref: Subsections 520.07(1)(a-d) and (7), F.S.)
6. Does the contract provide all required disclosures?
(Ref: Subsections 520.07(2)(a-d) and (3), F.S.)
7. Are authorizations for any insurance supported by a
policy or certificate?
(Ref: Subsection 520.07(4) F.S.;
and Rule 3D-50.001(1)(c)&(d), FAC)
8. Are insurance refunds properly rebated?
(Ref: Subsection 520.07(5), F.S.; and
Rule 3D-50.005, FAC)
9. Were late charges, if provided for, within legal limits?
(Ref: Subsection 520.07(5), F.S.;
and Rule 3D-50.005, FAC;
and Rules of Insurance Commission.)
10. Were receipts issued for cash payments?
(Ref: Subsection 520.07(8), F.S.)
11. Are official fees and other authorized miscellaneous
charges supported in fact? (Ref: Subsections
520.02(8) and 520.07(3)(e), F.S.;
and Rules 3D-50.001 and 3D-50.002, FAC)
12. Were finance charges within the maximum allowed?
(Ref: Subsections 520.08 and 520.085, F.S.; and
Rule 3D-50.002, FAC)
13. Are processing fees in compliance with Rule 3D-50.075,
FAC?
14. Are acquisition charges on prepaid simple interest
contracts in compliance with Subsection
520.085(1)(c), F.S.?
15. Were unearned finance charges properly rebated?
(Ref: Section 520.09, F.S.)
16. Were finance charges refunded on canceled insurance?
(Ref: Subsection 520.07(5), F.S.)

*Manual Revised 02-13-03

184
 YES NO
17. Were extension fees properly computed?
(Ref: Section 520.10, F.S.)
18. Were finance charges on variable rate contracts on mobile
homes in compliance? (Ref: Section 520.125, F.S. ( ) ( )
19. Did the disclosure of terms, costs and conditions on
contracts for the purchase of a mobile home with real
property meet with statutory requirements?
(Ref: Section 520.01, F.S.; and Rule 3D-50.007, FAC)
20. An examination of the installment contracts and
other records evidenced no waiver of the buyer's
statutory rights (Ref: Section 520.13, F.S.)

Part II - RS Retail Installment Sales

1. Was the retail seller and all branch locations

properly licensed? (Ref: Subsections 520.32(1) and
520.39, F.S.; and Rules 3D-60.060 and 3D 60.065, FAC)
( ) ( )
2. Was the license conspicuously displayed?
(Ref: Subsection 520.32(4), F.S.)
3. Was the company doing business under its licensed
name and location? (Ref: Subsection 520.32(4), F.S.)
4. Was the Department notified on any address
change since the last examination?
(Ref: Subsection 520.32(4), F.S.)
5. Was the contract in compliance with statutory requirements
including the proper "Notice to Buyer"?
(Ref: Subsections 520.34(1)(a-d),(4),(5) and (7), F.S.)
6. Does the contract provide all required disclosures?
(Ref: Subsections 520.34(2)(a-d),(3),F.S.)
7. Are authorizations for insurance supported by a policy
or certificate. (Ref: Subsection 520.34(8), F.S.; and Rule
3D-60.001, FAC)
8. Are insurance refunds properly rebated?
(Ref: Subsection 520.34(8), F.S.; and Rule
3D-60.004, FAC)
9. Are official fees and other authorized miscellaneous
charges supported in fact? (Ref: Subsections 520.31(8)
and 520.34(3)(e), F.S.; and Rule 3D-60.001, FAC)
10. Were finance charges within the maximums
allowed? (Ref: Subsections 520.34(6)(a) and 520.345,
F.S.; and Rule 3D-60.003, FAC)
11. Were unearned finance charges properly
rebated? (Ref: Subsection 520.34(11), F.S.) ( ) ( )
12. Were finance charges refunded on canceled
insurance? (Ref: Subsection 520.34(8), F.S.) ( ) ( )
13. Were extension charges properly computed?
(Ref: Subsection 520.34(6)(b), F.S.) ( ) ( )
14. Were receipts issued for cash payments?
(Ref: Subsection 520.34(9), F.S.) ( ) ( )

*Manual Revised
185
02-13-03
 YES NO
15. Were late charges, if provided for, within
legal limits? (Ref: Section 520.37, F.S.)
16. Did revolving account agreements comply with
statutory requirements? (Ref: Subsection 520.35(1), F.S.)
17. Were statements of account issued by the licensee to
the buyer as agreed? (Ref: Subsection 520.35(2), F.S.)
18. An examination of the installment contracts, revolving
accounts or other records evidenced no waiver of the
buyer's statutory rights. (Ref: Section 520.40, F.S.)

Part III - SF Installment Sales Finance

1. Was the company and branch locations properly

licensed? (Ref: Subsections 520.52(1) and 520.57, F.S;
and Rules 3D-70.050 and 3D-70.055, FAC)
2. Was the license conspicuously displayed?
(Ref: Subsection 520.52(4), F.S.)
3. Was the company doing business under its licensed
name and location? (Ref: Subsection 520.52(4), F.S.)
4. Were the dealers/sellers on all purchased contracts
properly licensed? (Ref: Subsections 520.03(1),
520.32(1), and 520.63(1), F.S.). (If no, see comments).

Part IV - HI Home Improvement Sales and Finance

1. Was the Home Improvement finance seller and all

branch locations properly licensed? (Ref: Subsections
520.63(1) and 520.98, F.S.; and Rules 3D-80.015 and
3D-80.060, FAC) ( ) ( )
2. Was the license conspicuously displayed?
(Ref: Subsection 520.63(4), F.S.) ( ) ( )
3. Was the seller doing business under its licensed
name and location? (Ref: Subsection 520.63(4), F.S.) ( ) ( )
4. Was the Department notified on any address change
since last examination? (Ref: Subsection 520.63(4), F.S.) ( ) ( )
5. Did the contract disclose the name of the Home
Improvement seller? (Ref. Subsection 520.70(1), F.S.) ( ) ( )
6. Was the printed portion of the contract acknowledging
the owner's receipt of the executed copy thereof in 10
point boldfaced type? (Ref: Section 520.71, F.S.)
7. Did the contract provide a written notice of the ( ) ( )
buyer's right to rescind? (Ref: Section 520.72, F.S.)
8. Was the contract in compliance with statutory requirements ( ) ( )
including the proper "Notice to Owner"?
(Ref: Subsections 520.73(1)(a-d), (4),(5), and (6), F.S.)
9. Does the contract provide all required disclosures? ( ) ( )
(Ref: Subsections 520.73(2)(a-d), and (3), F.S.)
( ) ( )

*Manual Revised 02-13-03

186
 YES NO
10. No contract contained prohibited provisions or waive of
any buyer's statutory protection.
(Ref: Sections 520.74 and 520.75, F.S.)
11. Are authorizations for any insurance supported by a policy
or certificate? (Ref: Section 520.76, F.S.)
12. Are insurance refunds properly rebated? (Ref: Subsection
520.76(3), F.S.)
13. Were finance charges within the maximum allowed? (Ref:
Sections 520.78 and 520.785, F.S.)
14. Were unauthorized charges properly refunded or credited?
(Ref: Section 520.79, F.S.; and Rule 3D-80.002, FAC)
15. Did each note or mortgage disclose the required legend in 10
point bold type? (Ref: Section 520.80, F.S.)
16. Were completion certificates prepared and signed by both
parties upon concluding the home improvement? (Ref:
Section 520.81, F.S.)
17. Were all instruments, liens, mortgages, etc., satisfied,
released and returned to the owner upon payment in full?
(Ref: Section 520.83, F.S.)
18. Were unearned finance charges properly rebated? (Ref:
Section 520.84, F.S.)
19. Were late charges, if provided for, within legal limits?
(Ref: Section 520.85, F.S.)
20. Were extension charges properly computed? (Ref: Section
520.86, F.S.)
21. Were receipts issued for cash payments? (Ref: Section
520.87, F.S.)
22. All assignments of contracts or notes were within statutory
limitations? (Ref: Section 520.88, F.S.)
23. No prohibited acts by the home improvement finance seller
were noted. (Ref: Section 520.90, F.S.)
24. No false completion certificates were noted. (Ref: Section
520.91, F.S.)
25. Unless exempted, was compensation for home improvement
work paid only to licensed parties?
(Ref: Section 520.92, F.S.)

Part V - Departmental Regulation - Records

1. Were all records available for review at the principal place of

business or other approved location? (Ref: Subsections
520.997(1),(2), and (4), F.S.)

2. Were said records maintained for at least two years after

date of final entry?
(Ref: Subsection 520.997(3), F.S.)

*Manual Revised 02-13-03

187
 YES NO
Part VI - General

1. Were private investor funds used in course of the licensee's business?

Part VII - Exit Interview

Name Title

1. Attendees: =

2. Were all findings discussed?

3. Findings/Comments attached?

Examiner(s): Date Completed:

Reviewer: Date Reviewed:

FINDINGS AND COMMENTS

XYZ d/b/a
AAA Auto Examination Number: 01-
1234TA License Number: MV-
123456789-000

None.

*Manual Revised 02-13-03

FOR ILLUSTRATION PURPOSES ONLY. CHECK WITH

LEGAL COUNSEL SINCE RULES AND LAWS CHANGE.

IT IS THE DEALER’S RESPONSIBILITY TO ASSURE

CURRENT LEGAL DOCUMENTATION AT THE TIME OF
EXECUTION OF ANY DOCUMENTS.

188
 Exhibit FS-3
Simple Interest Retail Installment Sales Contract — Motor Vehicle
Buyer (and Co-Buyer) Name and Address (including County and Zip Code) Creditor — Seller (Name and Address)

You, the Buyer (and Co-Buyer, if any), may buy the vehicle below for cash or on credit. Your decision to finance the vehicle's purchase does not affect the cash price for the vehicle. By signing this Contract, you
choose to purchase the vehide on credit under the agreements on the front and back of this Contract. You agree to pay the Creditor - Seller the Amount Financed and Finance Charge according to the payment
schedule below. We will figure your finance charge on a daily basis. The Truth-In-Lending Disclosures below are part of this Contract.
New or
Used Year Make and Model Odometer Vehicle Identification Number Primary Use for W hich Purchased

‰ Personal, family or household

‰ Business or commercial
‰ Agricultural

ANNUAL FINANCE Amount Total of Total Sale Price

PERCENTAGE CHARGE Financed Payments The total cost of your
RATE The dollar amount the The amount of credit The amount you will have purchase on credit,
The cost of your credit as a credit will cost you. provided to you or on your paid when you have made including your
yearly rate. behalf. all scheduled payments. down payment of

$
% $
Your payment schedule will be:
Number of Payments Amount of Payments W hen Payments Are Due

OPTIONAL CREDIT LIFE AND DISABILITY INSURANCE DISCLOSURE

Credit Life Insurance and Credit Disability Insurance are not required to obtain credit and will not be provided unless you agree to pay the additional cost of these products by signing below.
You have the right to purchase credit life and disability insurance from an insurer of your choice. If any insurance is check ed below, the policies or certificates provided by the insurance
company will describe the terms and conditions of coverage. Please see Optional Credit Insurance Disclosure Statement.
TYPE PREMIUM TERM SIGNATURE-BUYER SIGNATURE-CO-BUYER
Credi $ I/W e W ant Credit
t Life Life Insurance: X X
Credit $ I/We Want Credit
Disability Disability Insurance: X (BUYER ONLY)
Security Interest: You are giving a security interest in the vehicle being purchased.
Late Charge: If a payment is not received within 10 days after its due date, seller may assess a late charge of five (5%) percent of the payment. Acceptance of a late payment or late charge
does not constitute a waiver of seller's remedies upon subsequent default.
Prepayment: If you pay off early, you will not have to pay a penalty.
AdditionalTenns and Conditions: The reverse side of this Contract contains additional terms and conditions of this Contract. Please read both
sides of this document before signing below. By your signature below you certify that you have had an opportunity to read both sides of this
document and that you have done so. ITEMIZATION OF AMOUNT FINANCED
1 Cash Price (including any accessories, ( 1 )
services, and taxes imposed on the cash sale) + Cash Down payment $ ( 2 )
2 Total Downpayment = Net Trade-in $
Your Trade-in is a (Year) (Make) (Model)
( 3 )
3 Unpaid Balance of Cash Price (1 minus 2)
4 Other Charges Including Amounts Paid to Others on Your Behalf:

A Cost of Optional Credit Insurance for the Term of this Contract Paid to Insurance Company
Life $ Di sa bil ity Acci de nt a nd Heal t h $
B Of fi ci al F e es P ai d t o G ov er nm e nt A g enci e s
C D o c u m e n t a r y S
t am p T a xe s
D G ov er nm ent Li cense and/ or Regi s tr atio n Fees (I t emi ze)
E G o ve r n m e n t C e r t i f i c a te o f T it le F e es F
Other Charges (Seller must identify who will receive payment and describe purpose)*
to o f r o r
T o t atol O t h e r C h a r g e s faonr d A m o u n t s P a i d t o O t h e r s o n Y o u r B e h a l f 5 A m o u n t
Fi na n c e d — U n p ai d B al a nc e ( am o unt of cr e di t y o u wi l l g e t) (3 + 4) * S el l er m a y b e ( 4 )
r e t ai ni ng a po rti o n of t hi s am o unt ( 5 )

‰ OPTION: You pay no finance charge if the Amount Financed, item 5, is paid in full on or before Year SELLER's INITIALS

‰ ("System")
If this box is checked, then by signing this Contract, you agree to the installation and use of the
Returned Check Charge: If any check or order of payment you give us is dishonored, you will pay a
System as outlined in the separate Disclosure Statement signed by you, throughout the term of
this Contract. If you tamper with, alter, disconnect or remove the System, you will be deemed to charge if we make demand that you do so. The charge will be $25 if the check amount is $50 or
be in default of this Contract, we may take the vehicle from you and you may be liable for the less; $30 if the check is over $50 but not more than $300; $40 if the check amount is over $300,
cost to repair or replace the System. The System must be repaired and/or removed by the -t
ar such amount as permitted by law.
EXAMPLE ONLY - NOT FOR
Selleror its authorized represe ntative.
ACTUAL USE........
NOTICE TO BUYER: Do not si gn this C ontract before you read it or if it c ontains any blank spaces. You are entitled to an exact copy of the contract you sign. Keep it to protect
your legal rights.

By signing below, you ac k now led ge and agree that: (1) You were given a true and complete copy of this Contract to read before you signed it; (2) You read the entire Contract;
(3) You agree to be bound by th e terms and conditions set forth in this Contract; (4) You received a true and complete copy of the Contract after signing it and (5) The Annual
Percentage Rate disclosed abo ve may be negotiable and the Seller of the vehicle may retain a portion of this charge.

JURY WAVER AI parties to this Co n rac

l emmss
t yw
l k i e the dghtto atrial by jury in any action, proceeding, claim or controversy arising out of, or relating to, this Contract and/or
relating in any way to the sale and purchase of the Vehicle identified above.

You signed this Contract and received a copy on (Date). This Contract contains the entire agreement between you and us and any changes to this
Contract must be in writing and signed by you and us.

Buyer's Signature Co-Buyer's Signature

Seller's Signature By Title

For value received, Seller assigns its interest in this Contract to (Assignee) on
20

Seller's Signature: By: Title:

189 ADDITIONAL TERMS

SEE REVERSE SIDE FOR IMPORTANT
 ADDITIONAL TERMS OF THE CONTRACT AND SECURITY AGREEMENT
GENERAL TERMS -M used in this document, "Contract' includes the terms of any separate named as loss payee on any such policy;
security agreement, if applicable. You have been given an opportunity to purchase the (b) you will purchase insurance from a company which is authorized to do business in
vehicle and any other products described on the front side of this contract for the Cash Price Florida and which is reasonably acceptable to us;
or the Total Sale Price, which is the total price of the property if you buy it over time. The (c) you will maintain this insurance until all the secured obligations are paid in full; and
Total Sale Price disclosed on the front side of this Contract is based on the terms in effect (d) if you fail to obtain or maintain this insurance, or you fail to arrange for us to be named
today and the assumption that all payments will be made as scheduled. You agree that this as loss payee, we may (but in no event are required to) purchase such insurance which
and any other written agreement pertaining to the sale of the Vehicle contain all of the terms will secure only our interest in the property. The cost of such insurance will be added to
and provisions of your agreement with us and we have not made any oral warranties or the secured obligation, will be immediately due, and will accrue interest until paid in full at
promises regarding the Vehicle. This contract takes effect when signed by you. STATE LAW the highest allowable rate.
DOES NOT PROVIDE FOR A "COOLJNG OFF" OR CANCELLATION PERIOD FOR THIS SALE. (e) If the vehicle is lost or damaged you agree that we may use any insurance
AFTER YOU SIGN THS CONTRACT, YOU MAY ONLY CANCEL rr IF THE SELLER AGREES FOR settlement to reduce what you owe or repair the vehicle at our option.
LEGAL CAUSE, NOT SrAPLY BECAUSE YOU CHANGE YOUR M/411 DEFAULT - You will be in default on this contract if any one or more of the following occurs
GOVERNING LAW AND VENUE. This contract MI be governed by applicable federal laws and (except as prohibited by law):
the laws of the State of Florida. The parties agree that the sole venue for any dispute arising (a) you fail to make a payment on this contract in fa when due;
from this Contract will be in the county within Florida where Seller is located on the date of (b) you start a proceeding in bankruptcy or one is started against you or
Buyers execution of this Contract. your property;
SEVERABILITY. If any clause of this Contract is held unconscionable or unenforceable, (c) you fail to keep any promise contained in this contract;
for any reason, by any court of competent jurisdiction, then this Contract shall be (d) you become insolvent (either your liabilities exceed your assets or you are unable
construed as if such clause were never a part of it and the balance of the terms of to pay your debts as they become due); or
this Contract shall be binding on the parties. The wavier or invalidity of any provision (e) any legal entity (such as a partnership or corporation) that has agreed to pay this
of this Contract shall not impact the binding effect or validity of the other provisions of contract, merges, dissolves, reorganizes, or terminates its business.
this Contract (t) if the state prohibits the registering or titling of this vehicle because of your failure
SECURITY INTEREST. To secure your payment and performance under the terms of this to comply with state requirements.
contract, you give us a security interest in the vehicle, all accessions, attachments and OBLIGATIONS INDEPENDENT - Each buyer who signs this contract agrees jointly and
equipment placed in or on the vehicle (together called Property) and any proceeds from the severally to pay according to its terms. This means that
sale thereof. You also assign to us and give us a security interest in the proceeds and (a) you must pay this contract even if someone else has signed it;
premium refunds of any insurance and service contracts (or other such products or services) (b) we may release any co-buyer and you will still be obligated to pay the contract;
purchased pursuant to this contract. You will also make sure the title shows our security (c) we may release any security and you will still be obligated to pay the contract;
interest in the vehicle. (d) waiver by us of any of our rights MI not affect your duly to pay the contract
FINANCE CHARGE AND PAYMENTS -Any prepaid trance charge wil be treated as fully earned (e) extending new credit or renewing this contract will not affect your duty
on the date of this contract The rest of the finance charge will be calculated on a daily basis at to pay this contract; and
the base rate on the unpaid part of the principal balance. Your principal balance is the sum of (t) If an event of default occurs as to any one of you, we may exercise our
the amount financed and the prepaid finance charge, if any. You agree to pay all you owe remedies against any or all of you.
under this contract, even if the property is damaged, destroyed, or missing. Your payments REMEDIES- If you are in default on this contract, we have al of the remedies provided by law and
will be applied as follows: this contract. We may:
(a) we may apply each payment to the earned and unpaid part of the finance charge, (a) accelerate the due date of the contract and, subject to any rebate required by law,
to the unpaid part of your principal balance and to other amounts you owe under declare the aggregate sum then remaining unpaid (including all unpaid principal,
this contract in any order we choose; earned interest or finance charges and all other agreed charges) immediately due
(b) your finance charge, total of payments and total sale price shown on the front of this and payable;
contract is based on you making every payment on the day it is due; they may be more (b) pay taxes, assessments, or other liens or make repairs to the property if you have not
if you pay late and less of you pay eady. You will be notified of any changes before the done so. We are not required to do so, however, if we do, the amount we pay will be
final scheduled payment is due; added to the secured obligations, will be immediately due, and will accrue interest
(c) you may prepay all or part of your principal balance at any lime. If the contract is paid until paid in full at the highest allowable rate.
in full within six months after the date you sign it, we may impose an acquisition (c) require you to assemble the property and make it available to us at a place we
charge, not exceeding $75.00, for services performed on your behalf for processing designate which is reasonably convenient to you and us;
this contract. If you prepay, you must pay the earned and unpaid part of the Finance (d) immediately repossess the property by legal process or self-help, if we do so peacefully
Charge and all other amounts due up to the date of your payment; and and in accordance with the law. If we repossess the vehicle, you may have the right to
(d) you may ask us for a deferral of the scheduled due date of all or any part of a payment redeem (pay to get it back). We will send you a notice telling you how much you must
(extension). If we agree to your request, we may charge you a $15.00 extension fee. You pay to redeem. We will also send you a written notice of sale before selling the vehicle.
must maintain the physical damage insurance required by this contract during any Your right to redeem ends when we sell the vehicle. If we sell the vehicle, we will apply
extension. You may extend the term of any optional insurance you bought with this the proceeds from the sale toward our allowed expenses and then to the amcunt you
contract to cover the extension if the insurance company or your insurance contract owe pursuant to this contract. Allowed expenses include what we pay as a direct result
permits it, and you pay the charge for extending this insurance. If you get a payment of taking the vehicle, holding it, preparing it for sale, and selling it, plus attorney fees
extension, you will pay additional finance charges at the base rate on the amount and court costs the law permits. If any money is left (surplus), we will pay it to you
extended during the extension. You will also pay any additional insurance charges unless the law requires us to pay it to someone else. If the proceeds from the sale are
resulting from the extension, and the $15.00 extension fee if we charge you this fee. not enough to pay the amount you owe, you must pay the difference (deficiency) to
(e) We do not intend to collect or charge any finance charge or fee that is more than the us. If you fail to pay the deficiency upon request, we may charge you interest at the
maximum amount permitted by law. My charge or fee paid contrary to this provision highest lawful rate until you pay.
will be applied first to reduce the principal balance and, if the principal balance has (e) You may have to pay collection costs. If we hire an attorney to collect what you owe,
been paid in full, then refunded to you. you will pay the attorneys fees and court costs as permitted by law. This includes any
CREDIT INFORMATION - You hereby authorize Seller to investigate your credit worthiness attorneys' fees we incur as a result of any bankruptcy proceeding brought by or
and credit capacity in connection with the establishment, maintenance and collection of against you under federal law.
your account and to furnish information concerning you and your account to credit By choosing any one or more of these remedies, we do not waive our right to later use any other
reporting agencies. remedy. We do not waive a default if we choose not to use any remedy and, by electing not to
OWNERSHIP AND DUTIES TOWARD PROPERTY - By giving us this security use any remedy, we do not waive our right to later consider the event a default and to
interest, you represent and agree: immediately use any remedies if it continues or occurs again.
(a) that the certificate of tile to this property, if any, will be endorsed to show our first You understand that a dispute or desire to revoke or reject this agreement does not
priority security interest in this property. You will defend this property against any claim relieve you of the obligation to make your payments as scheduled. However, under FS
made by anyone else, and will do whatever is necessary to perfect and preserve our 520.07 you may elect to purchase a bond indemnifying us in the amount of the disputed
first priority security interest in the property; balance or you may deposit all accrued and thereafter accruing installment payments into
(b) the security interest you are giving us in this property has first priority over the claim of the registry of a court of competent jurisdiction until the dispute is resolved.
any other of your general or secured creditors. You have signed or immediately will In NO event shall Seller be held liable for any incidental, consequential or delay damages
sign any additional documents or provide us with any additional information we may incurred by Customer or others that arise from or relate to this Order or any conduct on
require to perfect and preserve our first priority in this property; the part of Seller or Seller's agents, employees, managers or representatives.
(c) you will keep the property in your possession in good condition and repair, notify us of
any loss or damage, and use it only for the lawful purposes for which it was intended UNLESS THE SELLER ENTERS INTO A WR ITTEN WARRANTY OR ENTERS
and for the purposes identified under Primary Use for Which Purchased on the front of INTO A SERVICE CONTRACT WITH BUYER ON ITS OWN BEHALF WITHIN 90
this contract. You agree not to remove the vehicle from the United States or to sell, DAYS FROM THE DATE OF THE CONTRACT, SELLER HEREBY D ISCLA IMS
rent, lease or transfer any interest in the vehicle or this contract without our written ANY AND ALL WARRANT IES EXPRESS OR IMPL IED . INCLUD ING ANY
permission. IMPLIED WARRANTY OF M ERCHANTABIL ITY OR FITNESS FOR A
(d) you will not attempt to sell the property or otherwise transfer any rights in this property to PARTICULAR PURPOSE IN CONNECTION WITH THE SALE OF TH IS
anyone else. You will not permit the property to become attached to any real estate VEH ICLE.
without first providing us an opportunity to preserve our first priority status; This provision does not affect any manufacturer warranty covering this vehicle
(e) you will pay all taxes and assessments on the property as they become due; that is still in effect and/or any warranty provided by a third party.
(t) you will keep the vehicle at the address you have provided on the front of this CONTRACTUAL DISCLOSURE STATEMENT (USED VEHICLES ONLY) The
contract (unless you provide us with advance written notice and we agree that the information you see on the window form for this Vehicle is part of this contract.
vehicle will be kept at a different address) and you will provide us reasonable access Information on the window form overrides any contrary provisions in the contract
to the property for the purpose of inspection; and of sale.
(g) If we pay any repair bills, storage bills, taxes, towing charges, fines or other charges on Spanish Translation: Guia para compradores de vehiculos usados. La informacion
the vehicle, you will repay the amount to us when we ask for it. que ve en el formulario de la ventanilla para este vehiculo forma parte dell
INSURANCE - You agree to purchase insurance on the property against such risks and in presente contrato. La informacion del formulario de la ventanilla deja sin efecto
such amounts as we may reasonably require for the term of this contract In addition, you toda disposicion en contrario contenida en el contrato de yenta.
agree that
(a) the insurance will cover our interest in the vehicle and you will arrange for us to be

NOTICE TO ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGA INST THE
SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DE BTOR SHALL NOT EXCEED
AMOUNTS PAID BY THE DEBTOR HEREUNDER.
This NOTICE applies only if the "personal, family or household" box in the "Primary Use for Which Purchased" section of this Contract is checked. Otherwise Buyer will not assert against any
subsequent holder or assignee of this Contract any claims or defenses the Buyer (debtor) 190 m1a8y3have against the Seller, or against the manufacturer of the vehicle or equipment obtained
under this Contract
SECTION4

Q20: The Office of Financial Regulation within the Florida Department of Financial Services issues
licenses to motor vehicle dealers who will be financing their own retail sales. These dealers will need a…
A. Motor Vehicle Retail Installment Seller's License.
B. Department of Revenue license.

Q21: Once you apply for this license you may…..

A. Finance, as long as you do not charge interest.
B. Assign to a finance company.
C. Not finance or assign until you receive your Motor Vehicle Retail Seller license.
D. None of the above.

Q22: Finance charge maximums apply to…..

A. Four classes of vehicles.
B. Three classes of vehicles.
C. Two classes of vehicles.
D. There are no maximums set.

Q23: All contracts shall, by Federal Rule, state the "annual percentage rate" or "APR" for the contract.
A. True.
B. False.

191
Section 5

Attorney
General
Enforcement

192
 Attorney General Enforcement
Deceptive and Unfair Trade Practices

Florida Law, under Chapter 501, Part II, provides for consumer protection against deceptive and
unfair trade practices that result in "unfair methods of competition, unconscionable acts or
practices, and unfair or deceptive acts in the conduct of any trade or commerce." The Florida
Attorney General and the local State's Attorneys are charged with the enforcement of this act.
Great weight is given by Florida to the interpretations of the Federal Trade Commission and
federal courts, therefore this act is known as the "Little FTC Act".

The Attorney General, through the Department of Legal Affairs, may take action against a dealer
for a variety of violations. Such action is of a civil nature which can result in civil penalties of up
to $10,000 per violation. If the victim is a senior citizen (60 years of age or older) or is
handicapped, the civil penalty is up to $15,000 per violation. The Department may also seek a
"cease and desist" order against businesses believed to be violating this act.

Areas of concern for motor vehicle dealers fall within the "Truth in Lending Act and Advertising"
and the "FTC Buyers Guide." However, there are many other state laws that, if violated, constitute a
violation of this act. Of primary importance is the dealer license statute. Anyone who deals in motor
vehicles without a state license is deemed to be in violation of this act.

Truth in Lending Act and Advertising

The main purpose of the Truth in Lending Act is to assure the meaningful disclosure of consumer
credit and lease terms, including those in advertisements, so that consumers can easily compare
terms and shop wisely for credit.

Before the passage of this act, an advertiser might have used only the most attractive credit or
lease terms, thus distorting the true cost of the credit or lease. For example, an advertisement might
have read, "96 Chevy, only $150 per month." Whether this was a bargain depends upon
information missing from the advertisement, such as the down payment and the number of
payments. The ad also omits the annual percentage rate and does not state whether the transaction
is a credit sale or lease. The Act requires that the advertisement tell the whole story.

For example, if an advertisement contains any of a number of terms specified in the Act, then that
advertisement must also include certain prescribed disclosures. In other words, the specified terms
"trigger" the disclosures. If, on the other hand, the ad does not use "triggering" terms, it need not
make the disclosures.

193
Triggering Terms

If you advertise closed-end credit with a "triggering term," you must also disclose other major
terms, including the annual percentage rate. This rule is intended to ensure that all important
terms of a credit plan, not just the attractive ones, appear in the ad.

The triggering terms for closed-end credit are:

1. The amount of the down payment (expressed as either a percentage or dollar amount), in a
"credit sale" transaction. Examples include:

"10% down" "90% financing"

"$ 1,000 down" "trade-in with $1,000 appraised value required"

2. The amount of any payment (expressed as either a percentage or dollar amount).

Examples include:

"Monthly payments less than $250 on all our loan plans"

"Pay $23.44 per $1,000 amount borrowed"
"210.95 per month"

3. The number of payments or the period of repayment. Examples include:

"Up to four years to pay"

"48 months to pay"

4. The amount of any finance charge. Examples include:

"Financing cost less than $300 per year"

"Less than $1200 interest"
"$2.00 monthly carrying charge"

Some statements about credit terms are too general to trigger additional disclosures. Examples of
terms that do not trigger the required disclosures are:

"No down payment" "Terms to fit your budget"

"Easy monthly payments" "Financing available"
"Loans available at 5% below our standard APR" "Pay weekly"

General statements, such as "take years to pay" or "no closing costs", do not trigger further
disclosures because they do not state or suggest the period of repayment or down payment cost.

194
Required Disclosures For Closed-end Credit

If your ad for closed-end credit uses a triggering term, it also must include the following
information:

1. The amount or percentage of the down-payment;

2. The terms of repayment, and
3. The "annual percentage rate", using the term or the abbreviation "APR".

The amount or percentage of the "down payment" need not be shown directly, as long as it can be
determined from the ad. For example, "10% cash required from buyer" or "credit terms require
minimum $1,000 trade-in" would satisfy the disclosure statement.

The "terms of repayment" may be expressed in a variety of ways, as long as they convey the
required information. For example, an automobile finance company might use unit cost to
disclose repayment terms: "48 monthly payments of $23.44 for each $1,000 borrowed."
Similarly, the length of the loan can be expressed as the number of payments or the time period
of the loan.

Sample Disclosure: The following disclosure of car financing offered by the dealer would
comply with the law if printed clearly and conspicuously:

Special close-out sale this weekend. Any in-stock Chevy Cavalier, only 5%
down, 5.9% APR (on approved credit). Example: 48 monthly payments of $224.95

Advertising Finance Rates

The second basic requirement for advertising closed-end credit is this: if your ad shows the finance
charge as a rate, that rate must be stated as an "annual percentage rate," using that term or the
abbreviation "APR". Your ad must state the annual percentage rate, even if it is the same as the
simple interest rate. So, if you are a dealer who wants to advertise low-rate financing, your
advertisement would read, for example, "5.9% annual percentage rate" or "5.9% APR". If you
want to show only a rate, and the APR is stated in the ad, no other credit information need be
included: the "triggering term" requirement does not apply because the rate and APR are not
triggering terms.

You must state the annual percentage rate accurately. The APR reflects the total cost of credit,
including interest and other credit charges. As long as you include the annual percentage rate in
the ad, you also may state a simple annual rate or a periodic rate or both, applicable to an unpaid
balance. However, the simple annual or periodic rate may not be more conspicuous in the
advertisement than the annual percentage rate.

No credit ad may state an "add-on" rate (for example, "17% add-on"). This rate is misleading
because it is significantly lower than the annual percentage rate, and its use in an ad violates the
law.

195
Typical Terms

You may be able to simplify compliance with the law's advertising requirements by using
examples of "typical credit terms" in the ad. One or more ads of a typical credit transaction are
appropriate as long as they are of the terms that are required to be disclosed. These examples must
be labeled as such and must be representative of the credit that is actually available.

For instance, suppose a dealer has "60 month financing" available on various types of vehicles.
The dealer could comply with the law by stating credit terms available with 60 month financing
based upon an automobile that a consumer could purchase on those terms.
60-month financing available. Example:
2004 Ford Taurus 20% down, $289 per month,
6.9% APR With Approved Credit.

The Buyer's Guide

Most car dealers who sell used vehicles must comply with the Federal Trade Commission's (FTC)
Used Car Rule. In fact, car dealers who sell more than five used vehicles in a 12-month period
must comply with the Rule. Banks and institutions are exempt from the Rule, as are businesses that
sell vehicles to their employees, and lessors who sell a leased vehicle to a lessee, an employee of the
lessee, or a buyer found by the lessee.

This section defines the Rule's requirements, explains how to prepare and display the Buyers
Guide, and offers a compliance checklist.

Who The Rule Applies To

You must post a Buyers Guide before you "offer" a used vehicle for sale. A vehicle is offered for
sale when you display it for sale or let a customer inspect it for the purpose of buying it, even if
the car is not fully prepared for delivery. This requirement also applies to used vehicles for sale on
your lot through consignment, power of attorney, or other agreement. At public auctions, dealers
and the auction company must comply. The Rule does not apply at auctions that are closed to
consumers.

Previously titled or not, any vehicle driven for purposes other than moving or test driving, is
considered a used vehicle, including light-duty vans, light-duty trucks, demonstrators, and
program cars that meet the following specifications:

a gross vehicle weight rating (GVWR) of less than 8,500

pounds; a curb weight of less than 6,000 pounds; a frontal
area of less than 46 square feet.

196
Exceptions to the Rule are:

- motorcycles;
- any vehicle sold for scrap or parts if the dealer submits title documents to the appropriate
state authority and obtains a salvage certification; and
- agricultural equipment.

What The Buyers Guide Does

The Buyers Guide is a disclosure document that gives consumers important purchasing and
warranty information. The Buyers Guide tells consumers:

- whether the vehicle is being sold "as is" or with a warranty;

- what percentage of the repair costs a dealer will pay under warranty;
- that oral promises are difficult to enforce;
- to get all promises in writing;
- to keep the Buyers Guide for reference after the sale;
- the major mechanical and electrical systems on the car, as well as some of the major
problems that consumers should look out for; and
- to ask to have the car inspected by an independent mechanic before they buy.

If you conduct a used car transaction in Spanish, you must post a Spanish language Buyers
Guide on the vehicle before you display or offer it for sale.

The Buyers Guide must be posted prominently and conspicuously on or in a vehicle when a car is
available for sale. This means it must be in plain view and both sides must be visible. That means you
can hang the Guide from the rear-view mirror inside the car or on a side-view mirror outside the car.
You also can place it under a windshield wiper. The Guide also can be attached to a side window. A
Guide in a glove compartment, trunk or under the seat is not conspicuous.

You may remove the Guide for a test drive, but you must replace it as soon as the test drive is
over.

Vehicle Information

At the top of the Guide, fill in the vehicle make, model, model year, and vehicle identification
number (VIN). Write in a dealer stock number if you wish.

Dealer Information

On the back of the Guide, fill in the name and address of your dealership and the name (or
position) and telephone number of the person the consumer should contact with complaints. You
may use a rubber stamp or preprint your Guide with this information.

197
Optional Signature Line

You may include a signature line on the Guide and you may ask the buyer to sign to acknowledge
that he or she has received the Guide. If you opt for a signature line, you must include a
disclosure near it that says: "I hereby acknowledge receipt of the Buyers Guide at the closing of
this sale." This language can be preprinted on the form. The signature line and the required
disclosure must appear in the space provided for the name of the individual to be contacted in the
event of complaints after the sale.

Warranty Information

- As Is-No Warranty. If state law allows it, (it does in Florida) and you choose not to offer a
warranty- written or implied- you must check the box next to the heading "As Is-No
Warranty" on the Guide.
- Warranty. If you offer the vehicle with an express warranty, you must check the box next to
the heading "Warranty" and complete that section of the Guide.

Is the Warranty "Full" or "Limited"?

For a warranty to be considered "full":

- Warranty service must be provided to anyone who owns a vehicle during the warranty period.
- Warranty service must be provided free of charge when necessary, even for services like
removing and reinstalling a system covered by the warranty.
The consumer must be able to choose either a replacement or a refund if the vehicle can't be
repaired after a reasonable number of tries.
The consumer is not required to take any action to receive service, except to give notice that
service is needed. Service must be rendered after notice unless the warrantor can demonstrate
that it is reasonable to require consumers to do more than give notice.
The length of implied warranties must not be limited.

Note: The warranty is considered "limited" if any of these conditions don't apply.

What Percentage of Costs Does the Warranty Cover?

Fill in the percentage of parts and labor costs covered by the warranty in the spaces provided. If a
deductible applies, put an asterisk next to the number and explain the deductible in the "systems
covered/duration" section. For example, "*A $50 deductible applies to each repair visit."

What Systems Are Covered? For How Long?

There's one column to list the systems covered, and another to list the length of the warranty for
each system. In the left hand column, you must specify each system that's covered by the
warranty. The Rule prohibits the use of shorthand phrases such as "drive train" or "power train"
because it's not always clear what specific components are included in the "power train" or
"drive train."

In the right hand column, you must state the length of the warranty for each system. If all systems
are covered for the same length of time, you may state the duration once.

198
What if the Manufacturer's Warranty Still Applies?

If the manufacturer's warranty hasn't expired, you may disclose this fact by checking the
"Warranty" box and including this disclosure in the "systems covered/duration" section:
"MANUFACTURER'S WARRANTY STILL APPLIES. The manufacturer's original warranty
has not expired on the vehicle. Consult the manufacturer's warranty booklet for details as to
warranty coverage, service location, etc." This disclosure must be stated in the exact language
quoted above. Using phrases such as "balance of factory warranty" are not sufficient.

If the consumer must pay to get coverage under the manufacturer's warranty, you may not check
the "Warranty" box. Such coverage is considered a service contract. However, you may check the
"warranty" box if you pay for coverage from the manufacturer and the consumer doesn't have to
pay anything more than the price of the vehicle to get the coverage. If you provide a warranty in
addition to the unexpired manufacturer's warranty, explain the terms of your warranty on the
Buyers Guide.

Where Should Negotiated Warranty Changes Be Included?

If you and the consumer negotiate changes in the warranty, the Buyers Guide must reflect the
changes. For example, if you offer to cover 50 percent of the cost of parts and labor for certain
repairs, but agree to cover 100 percent of the cost of parts and labor after negotiating with the
customer, you must cross out the "50 percent" disclosure and write " 100 percent." Similarly, if you
first offer the vehicle "as is" but then agree to provide a warranty, you must cross out the "As Is-No
Warranty" disclosure and complete the "Warranty" section of the Buyers Guide properly.

What Do I Have To Give The Buyer At The Sale?

You must give the buyer the original or a copy of the vehicle's Buyers Guide at the sale. The
Guide must reflect all final changes. If you include a signature line on your Buyers Guides,
make sure the buyer signs the Guide that reflects all final changes.

If you offer a written warranty or if the manufacturer's warranty still applies, you also must comply
with the Magnusson-Moss Warranty Act and other FTC Rules, including the "Warranty Disclosure
Rule. " The Warranty Act contains provisions that establish consumers' rights with respect to written
warranties. For example, the Act prohibits you from eliminating implied warranties when you
provide a written warranty. The Warranty Disclosure Rule requires that you disclose certain
information about the coverage of your warranty and consumers' rights under state law. This
information must be included in a single document that is clear and easy to read.

Can the Buyers Guide Serve As My Written Warranty?

The warranty information you provide on the Buyers Guide is not sufficient to meet the
requirements of the Warranty Disclosure Rule. Therefore, your written warranty and the Buyers
Guide must be two separate documents. Another federal rule — the FTC's Rule on Pre-Sale
Availability of Written Warranty Terms — requires that you display written warranties in close
proximity to the vehicle or make them available to consumers, upon request, before they buy.

199
What Disclosures Should I Make If I Offer A 50/50 Warranty Or Another Type Of
Split Cost Warranty?

Split cost warranties are those under which the dealer pays less than 100% of the cost for a
warranty repair. This type of warranty includes 50/50 warranties where the dealer pays 50% of
the cost for a covered repair and the buyer pays the remaining 50%. Another type of split cost
warranty is one under which the buyer pays a deductible amount and the dealer pays the
remaining cost for the repair.

If you offer a split cost warranty that requires you to pay a percentage of the repair cost for
covered repairs, you should include the following disclosures in your warranty document:
- The percentage of the total repair cost you will pay.
- The percentage of the total repair cost the buyer must pay.
- How the total cost of the repair will be determined. For example, your warranty might
state: "The total cost of a warranty repair will be the retail price ABC Motors charges for
the same job." As another example, your warranty might state: "The total cost of a
warranty repair will be determined by adding the dealer's cost for parts to the labor cost.
Labor will be billed at a rate of per hour for the actual time required to complete
the repair." As a final example, your warranty might state: "If the work is done by an
outside repair shop, total cost of a repair will be the same price ABC Motors is charged by
the outside shop. If the work is done by ABC Motors, the total cost of the repair will be
the same price ABC Motors charges non-warranty customer for the same job."

If your warranty requires buyers to pay a deductible, your warranty document should disclose the
deductible amount and the details as to when and under what circumstances the deductible must be
paid.

Dealers offering split cost warranties can require that buyers return to the dealer for warranty
repairs. If your warranty includes this restriction, however, you should provide an estimate of the
total repair cost before work is started. This will allow the buyer to decide whether to approve the
repair or have the work done elsewhere.

How Am I Doing?

- Do you complete a Buyers Guide properly for each used vehicle offered for sale?
- Do you post the Buyers Guide prominently and conspicuously on each used vehicle you offer
for sale?
If you choose to include a signature line for the buyer's signature, do you include the
following required disclosure language?
I hereby acknowledge receipt of the Buyers Guide at the closing of this sale.
Do you put the following required disclosure in your sales contract?
The information you see on the window form for this vehicle is part of this contract.
Information on the window form overrides any contrary provisions in the contract for
sale.

200
- Do you give the vehicle's Buyers Guide or a copy to the purchaser at the time of sale and
make sure it states the final negotiated warranty coverage accurately?
- If a sale is conducted in Spanish, do you use the Spanish language Buyers Guide?
- If you offer a written warranty, do you prepare a warranty document that complies with
federal law? Is the warranty document available for examination by potential buyers?

What If I Don't Comply?

Dealers who violate the Used Car Rule may be subject to penalties of up to $11,000 per violation in
FTC enforcement actions. The Attorney General and State's Attorneys can also enforce this law. The
FTC does conduct periodic blitzes inspecting vehicles on dealer's lots. Fines are assessed immediately
where violations are blatant. The Division of Motorist Services will also inform dealers if they are not
complying with the Buyers Guide disclosure and can fine dealers $1,000 per violation!

201
 Example of a Completed Buyers Guide

BUYERS GUIDE
IMPORTANT: Spoken promises are difficult to enforce. Ask the dealer to put all promises in writing. Keep this form.

Chevrolet Cavalier 1995 IGIAD27P6DJ123456

VEHICLE MAKE MODEL YEAR YIN NUMBER

DEALER STOCK NUMBER (Optional}

WARRANTIES FOR THIS VEHICLE:

AS IS - NO WARRANTY
YOU WILL PAY ALL COSTS FOR ANY REPAIRS. The dealer assumes no responsibility for any repairs regardless of any oral
statements about the vehicle.

WARRANTY
( )FULL ( X )LIMITED WARRANTY The dealer will pay1009% of the labor and 100% of the parts for the covered
systems that fail during the warranty period. Ask the dealer for a copy of the warranty document for
a full explanation of warranty coverage, exclusions, and the dealer's repair obligations. Under state
law, 'implied warranties' may give you even more rights.

SYSTEMS COVERED: DURATION:

Engine 90 Days or 1,000 miles, whichever is first.
Transmission & Drive Shaft
Differential
$5 0 d e d u c t i b i e a p p l i e s t o
ea ch r ep a i r vi s i t .
MANUFACTURERS WARRAMY STILL APPLIES. The manufacture's original
warranty has not ex pired on the vebi cal. Consul t t h e manu facturer's
warranty booklet for details such as warranty coverage, service location, etc.

X SERVICE CONTRACT. A service contract is available at an extra charge on this vehicle. Ask for details as
to coverage, deductible, price, and exclusions. If you buy a service contract within 90 days of the time of sale,
state law Implied warranties" may give you additional rights.
PRE PURCHASE INSPECTION: ASK THE DEALER IF YOU MAY HAVE THIS VEHICLE INSPECTED
BYYOUR MECHANIC EITHER ON OR OFF THE LOT.

SEE THE BACK OF THIS FORM for important additional information, including a list of some major defects
that may occur in used motor vehicles.

202
FIADA

Below is a list of some major defects that may occur in used motor vehicles.

Frame & Body BrakeSystem

Frameoracks, corrective welds, or rusted through Failure warning light broken
Dog tracks--bent or twisted frame Pedal not firm under pressure (DOT spec.)
Not enough pedal reserve (DOT spec.)
Engine Does not stop vehicle in straight tine (DOT spec.)
Oil leakage, excluding normal seepage Roses damaged
Cracked block or head Drum or rotor too thin (Mfgr. Specs)
Belts missing or inoperable LiNng or pad thickness less than 2132 inch
Knocks or misses related to camshaft lifters and Power unit not operating or leaking
push rods Structural or mechanical parts damaged
Abnormal exhaust discharge
SteeringSystem
Transmission & Drive Shaft Ton much free play at steering wheel (DOT specs.)
Improper fluid level or leakage, excluding normal Free play in linkage more than 114 inch
seepage Steering gear binds or jams
Cracked or damaged case which is visible Front wheels aligned improperly (DOT specs.)
Abnormal noise or vibration caused by faulty Power unit belts cracked or slipping
transmission or drive shaft Power unit fluid level improper
Improper shifting or functioning in any gear
Manual clutch ships or chatters Suspension System
Ball joint seals damaged
Differential Structural parts bent or damaged
Improperfluid level or leakage excluding normal Stabilizer bar disconnected
seepage Spring broken
Cracked of damaged housing which is visible Shock absorber mounting loose
Abnormal noise or vibration caused by faulty Rubber bushings damaged or missing
differential Radius rod damaged or missing
Shock absorber leaking or functioning improperly
Cooling System
Leakage including radiator IlreS
imPrOPeriy functioning water pump Tread depth less than 2/32 inch
Sizes mismatched
Electrical System Visible damage
Battery leakage
improperly functioning alternator, generator, Wheels
battery or starter Visible cracks, damage or repairs
Mounting bolts loose or missing
Fuel System
Visible leakage ExhaustSystem
Leakage
Inoperable Accessories
Gauges or warning devices
Air conditioner
Heater & Defroster

Reliable Used Cars

DEALER

1000 Downtown Expressway

ADDRESS

Any City, FL 33333

Stan Jones General, Manager, 555.555.1212
SEE FOR COMPLAINTS

Signature Line for Customer (FTC, "Signature line optional")

"I hereby acknowledge receipt of the Buyer's Guide at the closing of the sale."

IMPORTANT: The information on this form is part of any contract to buy this vehicle. Removal of this
label before consumer purchase (except for purpose of test-driving) is a violation of federal law (16
C.F.R. 455).

203
 Attorney General Statute

501.975 Definitions.—As used in s. 501.976, the following terms shall have the
following meanings:
(1) "Customer" includes a customer's designated agent.

(2) "Dealer" means a motor vehicle dealer as defined in s. 320.27, but does not include
a motor vehicle auction as defined in s. 320.27(1)(c)4.

(3) "Replacement item" means a tire, bumper, bumper fascia, glass, in-dashboard
equipment, seat or upholstery cover or trim, exterior illumination unit, grill, sunroof,
external mirror and external body cladding. The replacement of up to three of these items
does not constitute repair of damage if each item is replaced because of a product defect
or damaged due to vandalism while the new motor vehicle is under the control of the
dealer and the items are replaced with original manufacturer equipment, unless an item is
replaced due to a crash, collision, or accident.

(4) "Threshold amount" means 3 percent of the manufacturer's suggested retail price of
a motor vehicle or $650, whichever is less.

(5) "Vehicle" means any automobile, truck, bus, recreational vehicle, or motorcycle
required to be licensed under chapter 320 for operation over the roads of Florida, but
does not include trailers, mobile homes, travel trailers, or trailer coaches without
independent motive power.

501.976 Actionable, unfair, or deceptive acts or practices.—It is an unfair or

deceptive act or practice, actionable under the Florida Deceptive and Unfair Trade
Practices Act, for a dealer to:

(1) Represent directly or indirectly that a motor vehicle is a factory executive vehicle or
executive vehicle unless such vehicle was purchased directly from the manufacturer or a
subsidiary of the manufacturer and the vehicle was used exclusively by the manufacturer,
its subsidiary, or a dealer for the commercial or personal use of the manufacturer's,
subsidiary's, or dealer's employees.

(2) Represent directly or indirectly that a vehicle is a demonstrator unless the vehicle
was driven by prospective customers of a dealership selling the vehicle and such vehicle
complies with the definition of a demonstrator in s. 320.60(3).

(3) Represent the previous usage or status of a vehicle to be something that it was not,
or make usage or status representations unless the dealer has correct information
regarding the history of the vehicle to support the representations.

(4) Represent the quality of care, regularity of servicing, or general condition of

a vehicle unless known by the dealer to be true and supportable by material fact.

(5) Represent orally or in writing that a particular vehicle has not sustained structural or
substantial skin damage unless the statement is made in good faith and the vehicle has
been inspected by the dealer or his or her agent to determine whether the vehicle has
incurred such damage.

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(6) Sell a vehicle without fully and conspicuously disclosing in writing at or before
the consummation of sale any warranty or guarantee terms, obligations, or conditions
that the dealer or manufacturer has given to the buyer. If the warranty obligations are
to be shared by the dealer and the buyer, the method of determining the percentage of
repair costs to be assumed by each party must be disclosed. If the dealer intends to
disclaim or limit any expressed or implied warranty, the disclaimer must be in writing
in a conspicuous manner and in lay terms in accordance with chapter 672 and the
Magnuson-Moss Warranty—Federal Trade Commission Improvement Act.

(7) Provide an express or implied warranty and fail to honor such warranty
unless properly disclaimed pursuant to subsection (6).

(8) Misrepresent warranty coverage, application period, or any warranty transfer

cost or conditions to a customer.

(9) Obtain signatures from a customer on contracts that are not fully completed at
the time the customer signs or which do not reflect accurately the negotiations and
agreement between the customer and the dealer.

(10) Require or accept a deposit from a prospective customer prior to entering into a
binding contract for the purchase and sale of a vehicle unless the customer is given a
written receipt that states how long the dealer will hold the vehicle from other sale
and the amount of the deposit, and clearly and conspicuously states whether and
upon what conditions the deposit is refundable or nonrefundable.

(11) Add to the cash price of a vehicle as defined in s. 520.02(2) any fee or charge
other than those provided in that section and in rule 3D-50.001, Florida Administrative
Code. All fees or charges permitted to be added to the cash price by rule 3D-50.001,
Florida Administrative Code, must be fully disclosed to customers in all binding
contracts concerning the vehicle's selling price.

(12) Alter or change the odometer mileage of a vehicle.

(13) Sell a vehicle without disclosing to the customer the actual year and model of
the vehicle.

(14) File a lien against a new vehicle purchased with a check unless the dealer fully
discloses to the purchaser that a lien will be filed if purchase is made by check and
fully discloses to the buyer the procedures and cost to the buyer for gaining title to the
vehicle after the lien is filed.

(15) Increase the price of the vehicle after having accepted an order of purchase or
a contract from a buyer, notwithstanding subsequent receipt of an official price
change notification. The price of a vehicle may be increased after a dealer accepts
an order of purchase or a contract from a buyer if:

(a) A trade-in vehicle is reappraised because it subsequently is damaged, or parts

or accessories are removed;

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(b) The price increase is caused by the addition of new equipment, as required by
state or federal law;

(c) The price increase is caused by the revaluation of the United States dollar by
the Federal Government, in the case of a foreign-made vehicle;

(d) The price increase is caused by state or federal tax rate changes; or

(e) Price protection is not provided by the manufacturer, importer, or distributor.

(16) Advertise the price of a vehicle unless the vehicle is identified by year, make,
model, and a commonly accepted trade, brand, or style name. The advertised price must
include all fees or charges that the customer must pay, including freight or destination
charge, dealer preparation charge, and charges for undercoating or rustproofing. State
and local taxes, tags, registration fees, and title fees, unless otherwise required by local
law or standard, need not be disclosed in the advertisement. When two or more dealers
advertise jointly, with or without participation of the franchisor, the advertised price need
not include fees and charges that are variable among the individual dealers cooperating
in the advertisement, but the nature of all charges that are not included in the advertised
price must be disclosed in the advertisement.

(17) Charge a customer for any predelivery service required by the

manufacturer, distributor, or importer for which the dealer is reimbursed by the
manufacturer, distributor, or importer.

(18) Charge a customer for any predelivery service without having printed on all
documents that include a line item for predelivery service the following disclosure:
"This charge represents costs and profit to the dealer for items such as inspecting,
cleaning, and adjusting vehicles, and preparing documents related to the sale."

(19) Fail to disclose damage to a new motor vehicle, as defined in s. 319.001(8), of

which the dealer had actual knowledge, if the dealer's actual cost of repairs exceeds
the threshold amount, excluding replacement items.

In any civil litigation resulting from a violation of this section, when evaluating the
reasonableness of an award of attorney's fees to a private person, the trial court
shall consider the amount of actual damages in relation to the time spent.

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SECTION5

Q24: Attorney General Enforcement covers such items as…..

A. Deceptive and Unfair Trade Practices.
B. Truth in Lending Act and Advertising.
C. Both of the above.
D. None of the above.

Q25: Used car dealers who sell more than five used vehicles in a 12-month period must comply with the
Federal Trade Commission's (FTC) Used Car Rule.
A. True.
B. False.

Q26: The Buyers Guide must be….

A. In plain view and both sides must be visible.
B. Placed in the glove compartment when the vehicle is not being driven.
C. Displayed on the window directly in front of the driver’s view.

Q27: Dealers who violate the Used Car Rule may be subject to penalties of up to $ per violation in
FTC enforcement actions.
A. $1,000.00
B. $5,000.00
C. $9,500.00
D. $11,000.00

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Section 6

Federal
Regulations

208
 FEDERAL REGULATIONS
This section covers some of the most pertinent federal laws that the automotive industry must
follow. Keep in mind there are many; these are only a few. It is very important that you
familiarize yourself with these laws before starting your dealership.

In Brief: The Privacy Requirements of the Gramm-Leach-Bliley Act

Protecting the privacy of consumer information held by "institutions" is at the heart of the privacy
provisions of the Gramm-Leach-Bliley Modernization Act of 1999. The GLB Act requires
companies to give consumers privacy notices that explain the institutions' information-sharing
practices. In turn, consumers have the right to limit some - but not all sharing of their information.
Here's a brief look at the basic privacy requirements of the law.

Institutions

The GLB Act applies to "institutions" - companies that offer products or services to individuals,
like loans, or investment advice, or insurance. The Federal Trade Commission has authority to
enforce the law with respect to "institutions" that are not covered by the federal banking agencies,
the Securities and Exchange Commission, the Commodity Futures Trading Commission, and state
insurance authorities. Among the institutions that fall under FTC jurisdiction for purposes of the
GLB Act are non-bank mortgage lenders, loan brokers, some or investment advisers, tax preparers,
providers of real estate settlement services, debt collectors and automobile dealers. At the same
time, the FTC's regulation applies only to companies that are "significantly engaged" in such
activities. (NOTE: The automotive industry would fall under the definition of "significantly
engaged.")

The law requires that institutions protect information collected about individuals; it does not apply
to information collected in business or commercial activities.

Consumers and Customers

A company's obligations under the GLB Act depend on whether the company has consumers or
customers who obtain its services. A consumer is an individual who obtains or has obtained a
product or service from a institution for personal, family or household reasons. A customer is a
consumer with a continuing relationship with a institution. Generally, if the relationship between
the institution and the individual is significant and/or long-term, the individual is a customer of the
institution. For example, a person who gets a mortgage from a lender or hires a broker to get a
personal loan is considered a customer of the lender or the broke, while a person who uses a
check-cashing service is a consumer of that service.

Why is the difference between consumers and customers so important? Because only customers
are entitled to receive a institution's privacy notice automatically. Consumers are entitled to
receive a privacy notice from a institution only if the company shares the consumers'
information with companies not affiliated with it, with some exceptions. Customers must receive
a notice every year for as long as the customer relationship lasts.

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The privacy notice must be given to individual customers or consumers by mail or in-person
delivery; it may not, say, be posted on a wall. Reasonable ways to deliver a notice may depend on
the type of business the institution is in: for example, an online lender may post its notice on its
website and require online consumers to acknowledge receipt as a necessary part of a loan
application.

The Privacy Notice

The privacy notice must be a clear, conspicuous, and accurate statement of the company's privacy
practices; it should include what information the company collects about its consumers and
customers, with whom it shares the information, and how it protects or safeguards the
information. The notice applies to the "nonpublic personal information" the company gathers and
discloses about its consumers and customers; in practice, that may be most - or all - of the
information a company has about them. For example, nonpublic personal information could be
information that a consumer or customer puts on an application; information about the indiv idual
from another source, such as a credit bureau; or information about transactions between the
individual and the company, such as an account balance. Indeed, even the fact that an individual is
a consumer or customer of a particular institution is nonpublic person information. But
information that the company has reason to believe is lawfully public - such as mortgage loan
information in a jurisdiction where that information is publicly recorded - is not restricted by the
GLB Act.

Opt-Out Rights

Consumers and customers have the right to opt out of - or say no to - having their information
shared with certain third parties. The privacy notice must explain how - and offer a reasonable
way - they can do that. For example, providing a toll-free telephone number or a detachable form
with a pre-printed address is a reasonable way for consumers or customers to opt out; requiring
someone to write a letter as the only way to opt out is not.

The privacy notice also must explain that consumers have a right to say no to the sharing of
certain information - credit report or application information - with the institution's affiliates. An
affiliate is an entity that controls another company, is controlled by the company, or is under
common control with the company. Consumers have this right under a different law, the Fair
Credit Reporting Act. The GLB Act does not give consumers the right to opt out when the
institution shares other information with its affiliates.

The GLB Act provides no opt-out right in several other situations: For example, an individual
cannot opt out if:

- a institution shares information with outside companies that provide essential services
like data processing or servicing accounts;

- the disclosure is legally required;

- a institution shares customer data with outside service providers that market the
company's products or services.

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Receiving Nonpublic Personal Information

The GLB Act puts some limits on how anyone that receives nonpublic personal information from
a institution can use or re-disclose the information. Take the case of a lender that discloses
customer information to a service provider responsible for mailing account statements, where the
consumer has no right to opt out: The service provider may use the information for limited
purposes - that is, for mailing account statements. It may not sell the information to other
organizations or use it for marketing.

However, it's a different scenario when a company receives nonpublic personal information from a
institution that provided an opt-out notice — and the consumer didn't opt out. In this case, the
recipient steps into the shoes of the disclosing institution, and may use the information for its own
purposes or re-disclose it to a third party, consistent with the institution's privacy notice. That is, if
the privacy notice of the institution allows for disclosure to other unaffiliated institutions - like
insurance providers - the recipient may re-disclose the information to an unaffiliated insurance
provider.

Other Provisions

Other important provisions of the GLB Act also impact how a company conducts business. For
example, institutions are prohibited from disclosing their customers' account numbers to non-
affiliated companies when it comes to telemarketing, direct mail marketing or other marketing
through e-mail, even if the individuals have not opted out of sharing the information for marketing
purposes.

Another provision prohibits "pretexting" - the practice of obtaining customer information from
institutions under false pretenses. The FTC has brought several cases against information
brokers who engage in pretexting.
Institutions and Customer Data: Complying with the Safeguards Rule
Many institutions collect personal information from their customers, such as their names,
addresses and phone numbers; bank and credit card account numbers; income and credit
histories; and Social Security numbers. The Gramm-Leach-Bliley (GLB) Act requires
institutions to ensure the security and confidentiality of this type of information.

As part of its implementation of the GLB Act, the Federal Trade Commission (FTC) has issued
the Safeguards Rule. This Rule requires institutions under FTC jurisdiction to secure customer
records and information.

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Who Must Comply

The Safeguards Rule applies to businesses, regardless of size, that are "significantly engaged" in
providing products or services to consumers. This includes check-cashing businesses, data
processors, mortgage brokers, nonbank lenders, personal property or real estate appraisers,
professional tax preparers, courier services, retailers that issue credit cards to consumers, and
automobile dealers. The Safeguards Rule also applies to companies, like credit reporting agencies
and ATM operators that receive information from other institutions about their customers. In
addition to developing their own safeguards, institutions are responsible for taking steps to ensure
that their affiliates and service providers safeguard customer information in their care.

The Safeguards Rule is posted http://business.ftc.gov/documents/bus53-brief-financial-privacy-

requirements-gramm-leach-bliley-act.

For more information on whether your company is a institution, please see section 313.3(k) of
the Privacy Rule and the Activities Regulations. Both can be found at
www.ftc.gov/privacy/privacyinitiatives/rulel&r.html.

The FTC’s Privacy Rule and Auto Dealers: FAQs http://business.ftc.gov/documents/bus64 -

ftcs-privacy-rule-and-auto-dealers-faqs.

An Added Value

Adequately securing customer information is not only the law, it makes good business sense.
When you show customers that you care about the security of their personal information, you
increase their level of confidence in your institution. Poorly-managed customer data can lead to
identity theft. Identity theft occurs when someone steals a consumer's personal identifying
information to open new charge accounts, order merchandise or borrow money.

How to Comply

The Safeguards Rule requires institutions to develop a written information security plan that
describes their program to protect customer information. The plan must be appropriate to the
institution's size and complexity, the nature and scope of its activities, and the
sensitivity of the customer information it handles. As part of its plan, each institution must:

1. designate one or more employees to coordinate the safeguards;

2. identify and assess the risks to customer information in each relevant area of the
company's operation, and evaluate the effectiveness of the current safeguards for
controlling these risks;

3. design and implement a safeguards program, and regularly monitor and test it;

4. select appropriate service providers and contract with them to implement safeguards; and

5. evaluate and adjust the program in light of relevant circumstances, including changes in
the firm's business arrangements or operations, or the results of testing and monitoring of
safeguards.

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 These requirements are designed to be flexible. Each institution should implement safeguards
appropriate to its own circumstances. For example, some institutions may choose to describe their
safeguards programs in a single document, while others may memorialize their plans in several
different documents, such as one to cover an information technology division and another to
describe the training program for employees. Similarly, a company may decide to designate a
single employee to coordinate safeguards or may spread this responsibility among several
employees who will work together.

In addition, a firm with a small staff may design and implement a more limited employee training
program than a firm with a large number of employees. And a institution that doesn't receive or
store any information online may take fewer steps to assess risks to its computers than a firm that
routinely conducts business online.

Securing Information

When a firm implements safeguards, the Safeguards Rule requires it to consider all areas of its
operation, including three areas that are particularly important to information security: employee
management and training; information systems; and managing system failures. Firms should
consider implementing the following practices in these areas.

Employee Management and Training

The success or failure of your information security plan depends largely on the employees who
implement it. You may want to:
Check references prior to hiring employees who will have access to customer information.

Ask every new employee to sign an agreement to follow your organization's confidentiality and
security standards for handling customer information.

Train employees to take basic steps to maintain the security, confidentiality and integrity of
customer information, such as:

x- locking rooms and file cabinets where paper records are kept;

- using password-activated screensavers;

- using strong passwords (at least eight characters long);

- changing passwords periodically, and not posting passwords near employees' computers;

- encrypting sensitive customer information when it is transmitted electronically over

networks or stored online;

- referring calls or other requests for customer information to designated individuals who
have had safeguards training; and

- recognizing any fraudulent attempt to obtain customer information and reporting it to

appropriate law enforcement agencies.

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Instruct and regularly remind all employees of your organization's policy - and the legal
requirement - to keep customer information secure and confidential. You may want to provide
employees with a detailed description of the kind of customer information you handle (name,
address, account number, and any other relevant information) and post reminders about their
responsibility for security in areas where such information is stored - in file rooms, for example.

Limit access to customer information to employees who have a business reason for seeing it. For
example, grant access to customer information files to employees who respond to customer
inquiries, but only to the extent they need it to do their job.

Impose disciplinary measures for any breaches.

Information Systems

Information systems include network and software design, and information processing, storage,
transmission, retrieval, and disposal. Here are some suggestions on how to maintain security
throughout the life cycle of customer information - that is, from data entry to data disposal:
Store records in a secure area. Make sure only authorized employees have access to the area. For
example:

- store paper records in a room, cabinet, or other container that is locked when unattended;

- ensure that storage areas are protected against destruction or potential damage from
physical hazards, like fire or floods;

- store electronic customer information on a secure server that is accessible only with a
password - or has other security protections - and is kept in a physically-secure area;

- don't store sensitive customer data on a machine with an Internet connection; and

- maintain secure backup media and keep archived data secure, for example, by storing off-
line or in a physically-secure area.

Provide for secure data transmission (with clear instructions and simple security tools) when you
collect or transmit customer information. Specifically:

- if you collect credit card information or other sensitive data, use a Secure Sockets Layer
(SSL) or other secure connection so that the information is encrypted in transit;

- if you collect information directly from consumers, make secure transmission automatic.
Caution consumers against transmitting sensitive data, like account numbers, via
electronic mail; and

- if you must transmit sensitive data by electronic mail, ensure that such messages are
password protected so that only authorized employees have access.

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Dispose of customer information in a secure manner. For example:

- hire or designate a records retention manager to supervise the disposal of records

containing nonpublic personal information;

- shred or recycle customer information recorded on paper and store it in a secure area until
a recycling service picks it up;

- erase all data when disposing of computers, diskettes, magnetic tapes, hard drives or any
other electronic media that contain customer information;

- effectively destroy the hardware; and

- promptly dispose of outdated customer information.

Use appropriate oversight or audit procedures to detect the improper disclosure or theft of
customer information. For example, supplement each of your customer lists with at least one
entry (such as an account number or address) that you control, and monitor use of this entry to
detect all unauthorized contacts or charges.

Maintain a close inventory of your computers.

Managing System Failures

Effective security management includes the prevention, detection and response to attacks,
intrusions or other system failures. Consider the following suggestions:
Maintain up-to-date and appropriate programs and controls by:

- following a written contingency plan to address any breaches of your physical,

administrative or technical safeguards;

- checking with software vendors regularly to obtain and install patches that resolve
software vulnerabilities;

- using anti-virus software that updates automatically;

- maintaining up-to-date firewalls, particularly if you use broadband Internet access or

allow employees to connect to your network from home or other off-site locations; and

- providing central management of security tools for your employees and passing along
updates about any security risks or breaches.

Take steps to preserve the security, confidentiality and integrity of customer information in the
event of a computer or other technological failure. For example, back up all customer data
regularly.

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Maintain systems and procedures to ensure that access to nonpublic consumer information is
granted only to legitimate and valid users. For example, use tools like passwords combined with
personal identifiers to authenticate the identity of customers and others seeking to do business
with the institution electronically.

Notify customers promptly if their nonpublic personal information is subject to loss, damage or
unauthorized access.

USA PATRIOT ACT

Under this Act, the Treasury Department issued a Final Rule that establishes a procedure for law
enforcement agencies to provide names of suspected terrorists and money launderers to
institutions (including automobile dealers) in an effort to locate and secure the accounts of these
individuals or groups.

As of September 26, 2002, any motor vehicle dealerships that are provided names of suspected
terrorists by a law enforcement agency must designate one person at the dealership to be the
contact person regarding the request and any future requests that it receives. The dealership must
also protect the security and confidentiality of these requests received from FinCEN (Crimes
Enforcement Network) and their responses to these requests.

The USA Patriot Act also requires every institution to establish an anti-money
laundering program. The program must include:

1. The development of internal policies, procedures, and controls;

2. The designation of a compliance officer;
3. An ongoing employee-training program; and
4. Independent audit function to test programs.

In addition, dealerships must establish minimum procedures to identify customers including:

1. Adopting reasonable procedures for verifying the identity of any person seeking to open
an account;
2. Maintaining records of the information used to verify the person's identity, including the
person's name, address, and other identifying information; and
3. Determining whether the person appears on any lists of known or suspected terrorists or
terrorist organizations provided to the institution by a government agency. Note: The website to
access the List of Specially Designated Nationals and Blocked Persons is
http://www.treas.gov/offices/enforcement/ofac/sdn/index.html. If you get a hit, you must
contact the Office of Foreign Assets Control (OFAC) at 1-800-540-6322

216
Reports of Cash Payments Over $10,000
Federal law requires that any person engaged in a trade or business that receives cash in excess of
$10,000 in a single transaction or in related transactions must file, IRS Form 8300, Report of Cash
Payments Over $10,000 Received in a Trade or Business.

The form and instructions appear at the end of this chapter. Below is a list of commonly asked
questions regarding the filing of Form 8300. However, you are strongly encouraged to read the
instructions accompanying this form for additional information.

What is a related transaction?

Any transactions between a buyer (or an agent of the buyer) and a seller that occur within a 24-
hour period are "related transactions". If you receive over $10,000 in cash during two or more
transactions with one buyer in a 24-hour period, you must treat the transactions as one transaction
and report the payments on Form 8300, Report of Cash Payments Over $10,000 Received in a
Trade or Business.

What are the filing requirements for Form 8300?

A required Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business,
must be filed within 15 days after receiving a payment of more than $10,000. If you receive more
than $10,000 in additional cash payments from a buyer within a 12-month period on the same
transaction (e.g. installment payments), you must file another Form 8300.

Does the buyer have to be notified that a Form 8300 was filed?

You must give a written statement to each person named on any Form 8300, Report of Cash
Payments Over $10,000 Received in a Trade or Business, you must file. The statement must show
the name and phone number of a contact person, and the total amount of reportable cash the seller
received from the buyer during the year. It must state that the information was reported to the IRS.

When must the buyer be notified?

The seller must send the required statement to the buyer by January 31 of the year after the year
in which the seller received the cash that caused the seller to file the form.

Is the filer of Form 8300 required to keep a copy of the filed form?

The filer must keep a copy of every Form 8300, Report of Cash Payments Over $10,000 Received
in a Trade or Business, that he/she is required to file for five years.

Is there an IRS publication explaining Form 8300, Report of Cash Payments Over
$10,000 Received in a Trade or Business?

Yes. Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or
Business), is an excellent source of information regarding Form 8300.

NOTE: You must also send a copy of this form to the Florida Department of Revenue. See the
DOR publication "Tax Information for Motor Vehicle Dealers" for further information.

217
IRS
Form 8300 Report of Cash Payments Over $10,000
Received in a Trade or Business
FinCEN
Form 8300
(Rev. November 2011) ൘G See instructions for definition of cash. (Rev. November 2011)
OMB No. 1545-0892 ൘GUse this form for transactions occurring after June 30, 2011. Do not use prior versions after this date. OMB No. 1506-0018
Department of the Treasury
Department of the Treasury
Internal Revenue Service
For Privacy Act and Paperwork Reduction Act Notice, see the last page. Financial Crimes
Enforcement Network
1 Check appropriate box(es) if: a Amends prior report; b Suspicious transaction.
Part I Identity of Individual From Whom the Cash Was Received
2 If more than one individual is involved, check here and see instructions . . . . . . . . . . . . . . . . . . . . ൘G
3 Last name 4 First name 5 M.I. 6 Taxpayer identification number

7 Address (number, street, and apt. or suite no.) 8 Date of birth . . . ൘G M M D D Y Y Y Y

(see instructions)
9 City 10 State 11 ZIP code 12 Country (if not U.S.) 13 Occupation, profession, or business

14 Identifying a Describe ID ൘G b Issued by ൘G

document (ID) c Number ൘G
Part II Person on Whose Behalf This Transaction Was Conducted
15 If this transaction was conducted on behalf of more than one person, check here and see instructions . . . . . . . . . . . ൘G
16 Individual’s last name or organization’s name 17 First name 18 M.I. 19 Taxpayer identification number

20 Doing business as (DBA) name (see instructions) Employer identification number

21 Address (number, street, and apt. or suite no.) 22 Occupation, profession, or business

23 City 24 State 25 ZIP code 26 Country (if not U.S.)

27 Alien a Describe ID ൘G b Issued by ൘G

identification (ID) c Number ൘G
Part III Description of Transaction and Method of Payment
28 Date cash received 29 Total cash received 30 31 Total price if different from
If cash was received in item 29
M M D D Y Y Y Y
more than one payment,
check here . . . ൘G
$ .00 $ .00
32 Amount of cash received (in U.S. dollar equivalent) (must equal item 29) (see instructions):
a U.S. currency $ .00 (Amount in $100 bills or higher $ .00 )
b Foreign currency $ .00 (Country ൘G )

}
c Cashier’s check(s) $ .00 Issuer’s name(s) and serial number(s) of the monetary instrument(s) ൘
d Money order(s) $ .00
e Bank draft(s) $ .00 G
f Traveler’s check(s) $ .00
33 Type of transaction 34 Specific description of property or service shown in
a Personal property purchased f Debt obligations paid 33. Give serial or registration number, address, docket
b Real property purchased g Exchange of cash number, etc. ൘G
c Personal services provided h Escrow or trust funds
d Business services provided i Bail received by court clerks
e Intangible property purchased j Other (specify in item 34) ൘G
Part IV Business That Received Cash
35 Name of business that received cash 36 Employer identification number

37 Address (number, street, and apt. or suite no.) Social security number

38 City 39 State 40 ZIP code 41 Nature of your business

42 Under penalties of perjury, I declare that to the best of my knowledge the information I have furnished above is true, correct,
and complete.
Ÿ

Signature Title
Authorized official
43 Date of M M D D Y Y Y Y 44 Type or print name of contact person 45 Contact telephone number
signature

IRS Form 8300 (Rev. 11-2011) Cat. No. 62133S FinCEN Form 8300 (Rev. 11-2011)
218
IRS Form 8300 (Rev. 11-2011) Page 2 FinCEN Form 8300 (Rev. 11-2011)
Multiple Parties
(Complete applicable parts below if box 2 or 15 on page 1 is checked)

Part I Continued—Complete if box 2 on page 1 is checked

3 Last name 4 First name 5 M.I. 6 Taxpayer identification number

7 Address (number, street, and apt. or suite no.) 8 Date of birth . . . ൘G

M M D D Y Y Y Y
(see instructions)
9 City 10 State 11 ZIP code 12 Country (if not U.S.) 13 Occupation, profession, or business

14 Identifying a Describe ID ൘G b Issued by ൘G

document (ID) c Number ൘G

3 Last name 4 First name 5 M.I. 6 Taxpayer identification number

7 Address (number, street, and apt. or suite no.) 8 Date of birth . . . ൘G

M M D D Y Y Y Y
(see instructions)
9 City 10 State 11 ZIP code 12 Country (if not U.S.) 13 Occupation, profession, or business

14 Identifying a Describe ID ൘G b Issued by ൘G

document (ID) c Number ൘G

Part II Continued—Complete if box 15 on page 1 is checked

16 Individual’s last name or organization’s name 17 First name 18 M.I. 19 Taxpayer identification number

20 Doing business as (DBA) name (see instructions) Employer identification number

21 Address (number, street, and apt. or suite no.) 22 Occupation, profession, or business

23 City 24 State 25 ZIP code 26 Country (if not U.S.)

27 Alien a Describe ID ൘G b Issued by ൘G

identification (ID) c Number ൘G

16 Individual’s last name or organization’s name 17 First name 18 M.I. 19 Taxpayer identification number

20 Doing business as (DBA) name (see instructions) Employer identification number

21 Address (number, street, and apt. or suite no.) 22 Occupation, profession, or business

23 City 24 State 25 ZIP code 26 Country (if not U.S.)

27 Alien a Describe ID ൘G b Issued by ൘G

identification (ID) c Number ൘G
Comments – Please use the lines provided below to comment on or clarify any information you entered on any line in Parts I, II, III, and IV

IRS Form 8300 (Rev. 11-2011) FinCEN Form 8300 (Rev. 11-2011)

219
IRS Form 8300 (Rev. 11-2011) Page 3 FinCEN Form 8300 (Rev. 11-2011)
Section references are to the Internal requirement can be satisfied either by Multiple payments. If you receive more
Revenue Code unless otherwise noted. sending a single written statement with than one cash payment for a single
an aggregate amount listed or by transaction or for related transactions,
What's New furnishing a copy of each Form 8300 you must report the multiple payments
relating to that payer. Payments made to any time you receive a total amount that
Future Developments. The IRS has exceeds $10,000 within any 12-month
satisfy separate bail requirements are
created a page on IRS.gov for not required to be aggregated. See period. Submit the report within 15 days
information about Form 8300, at Treasury Regulations section 1.6050I-2. of the date you receive the payment that
www.irs.gov/form8300. Information causes the total amount to exceed
about any future developments affecting Casinos must file Form 8300 for
nongaming activities (restaurants, shops, $10,000. If more than one report is
Form 8300 such as legislation enacted required within 15 days, you may file a
after we release it will be posted on that etc.).
combined report. File the combined
page. Voluntary use of Form 8300. Form report no later than the date the earliest
8300 may be filed voluntarily for any report, if filed separately, would have to
Important Reminders suspicious transaction (see Definitions, be filed.
• Section 6050I (26 United States Code later) for use by FinCEN and the IRS,
even if the total amount does not Taxpayer identification number (TIN).
(U.S.C.) 6050I) and 31 U.S.C. 5331 You must furnish the correct TIN of the
require that certain information be exceed $10,000.
person or persons from whom you
reported to the IRS and the Financial Exceptions. Cash is not required to be receive the cash and, if applicable, the
Crimes Enforcement Network (FinCEN). reported if it is received: person or persons on whose behalf the
This information must be reported on • By a financial institution required to file transaction is being conducted. You may
IRS/FinCEN Form 8300. Form 104, Currency Transaction Report; be subject to penalties for an incorrect
• Item 33, box i, is to be checked only by • By a casino required to file (or exempt or missing TIN.
clerks of the court; box d is to be from filing) Form 103, Currency The TIN for an individual (including a
checked by bail bondsmen. See Item 33 Transaction Report by Casinos, if the sole proprietorship) is the individual’s
under Part III, later. cash is received as part of its gaming social security number (SSN). For certain
• The meaning of the word “currency” business; resident aliens who are not eligible to get
for purposes of 31 U.S.C. 5331 is the • By an agent who receives the cash an SSN and nonresident aliens who are
same as for the word “cash” (See Cash from a principal, if the agent uses all of required to file tax returns, it is an IRS
under Definitions, later). the cash within 15 days in a second Individual Taxpayer Identification
transaction that is reportable on Form Number (ITIN). For other persons,
General Instructions 8300 or on Form 104, and discloses all including corporations, partnerships, and
the information necessary to complete estates, it is the employer identification
Who must file. Each person engaged in number (EIN).
a trade or business who, in the course Part II of Form 8300 or Form 104 to the
of that trade or business, receives more recipient of the cash in the second If you have requested but are not able
than $10,000 in cash in one transaction transaction; to get a TIN for one or more of the
or in two or more related transactions, • In a transaction occurring entirely parties to a transaction within 15 days
must file Form 8300. Any transactions outside the United States. See following the transaction, file the report
conducted between a payer (or its Publication 1544, Reporting Cash and attach a statement explaining why
agent) and the recipient in a 24-hour Payments of Over $10,000 (Received in the TIN is not included.
period are related transactions. a Trade or Business), regarding Exception: You are not required to
Transactions are considered related transactions occurring in Puerto Rico provide the TIN of a person who is a
even if they occur over a period of more and territories and possessions of the nonresident alien individual or a foreign
than 24 hours if the recipient knows, or United States; or organization if that person or foreign
has reason to know, that each • In a transaction that is not in the organization:
transaction is one of a series of course of a person’s trade or business. • Does not have income effectively
connected transactions. connected with the conduct of a U.S.
When to file. File Form 8300 by the
Keep a copy of each Form 8300 for 5 15th day after the date the cash was trade or business;
years from the date you file it. received. If that date falls on a Saturday, • Does not have an office or place of
Clerks of federal or state courts must Sunday, or legal holiday, file the form on business, or a fiscal or paying agent in
file Form 8300 if more than $10,000 in the next business day. the United States;
cash is received as bail for an Where to file. File the form with the • Does not furnish a withholding
individual(s) charged with certain criminal Internal Revenue Service, Detroit certificate described in §1.1441-1(e)(2) or
offenses. For these purposes, a clerk Computing Center, P.O. Box 32621, (3) or §1.1441-5(c)(2)(iv) or (3)(iii) to the
includes the clerk’s office or any other Detroit, Ml 48232. extent required under §1.1441-1(e)(4)(vii);
office, department, division, branch, or or
unit of the court that is authorized to Statement to be provided. You must
give a written or electronic statement to • Does not have to furnish a TIN on any
receive bail. If a person receives bail on
behalf of a clerk, the clerk is treated as each person named on a required Form return, statement, or other document as
receiving the bail. See Item 33 under 8300 on or before January 31 of the required by the income tax regulations
Part III, later. year following the calendar year in which under section 897 or 1445.
the cash is received. The statement Penalties. You may be subject to
If multiple payments are made in cash must show the name, telephone number, penalties if you fail to file a correct and
to satisfy bail and the initial payment and address of the information contact complete Form 8300 on time and you
does not exceed $10,000, the initial for the business, the aggregate amount cannot show that the failure was due to
payment and subsequent payments of reportable cash received, and that the reasonable cause. You may also be
must be aggregated and the information information was furnished to the IRS.
return must be filed by the 15th day after subject to penalties if you fail to furnish
Keep a copy of the statement for your timely a correct and complete statement
receipt of the payment that causes the records.
aggregate amount to exceed $10,000 in to each person named in a required
cash. In such cases, the reporting
220
IRS Form 8300 (Rev. 11-2011) Page 4 FinCEN Form 8300 (Rev. 11-2011)
report. A minimum penalty of $25,000 Exceptions. A cashier’s check, money Item 8. Enter eight numerals for the date
may be imposed if the failure is due to order, bank draft, or traveler’s check is of birth of the individual named. For
an intentional or willful disregard of the not considered received in a designated example, if the individual’s birth date is
cash reporting requirements. reporting transaction if it constitutes the July 6, 1960, enter 07 06 1960.
Penalties may also be imposed for proceeds of a bank loan or if it is Item 13. Fully describe the nature of the
causing, or attempting to cause, a trade received as a payment on certain occupation, profession, or business (for
or business to fail to file a required promissory notes, installment sales example, “plumber,” “attorney,” or
report; for causing, or attempting to contracts, or down payment plans. See “automobile dealer”). Do not use general
cause, a trade or business to file a Publication 1544 for more information. or nondescriptive terms such as
required report containing a material Person. An individual, corporation, “businessman” or “self-employed.”
omission or misstatement of fact; or for partnership, trust, estate, association, or Item 14. You must verify the name and
structuring, or attempting to structure, company. address of the named individual(s).
transactions to avoid the reporting Recipient. The person receiving the Verification must be made by
requirements. These violations may also cash. Each branch or other unit of a examination of a document normally
be subject to criminal prosecution which, person’s trade or business is considered accepted as a means of identification
upon conviction, may result in a separate recipient unless the branch when cashing checks (for example, a
imprisonment of up to 5 years or fines of receiving the cash (or a central office driver’s license, passport, alien
up to $250,000 for individuals and linking the branches), knows or has registration card, or other official
$500,000 for corporations or both. reason to know the identity of payers document). In item 14a, enter the type of
making cash payments to other document examined. In item 14b,
Definitions branches. identify the issuer of the document. In
Cash. The term “cash” means the Transaction. Includes the purchase of item 14c, enter the document’s number.
following. property or services, the payment of For example, if the individual has a Utah
• U.S. and foreign coin and currency debt, the exchange of cash for a driver’s license, enter “driver’s license”
received in any transaction; or negotiable instrument, and the receipt of in item 14a, “Utah” in item 14b, and the
cash to be held in escrow or trust. A number appearing on the license in item
• A cashier’s check, money order, bank
single transaction may not be broken 14c.
draft, or traveler’s check having a face
amount of $10,000 or less that is into multiple transactions to avoid Note. You must complete all three items
received in a designated reporting reporting. (a, b, and c) in this line to make sure that
transaction (defined below), or that is Suspicious transaction. A suspicious Form 8300 will be processed correctly.
received in any transaction in which the transaction is a transaction in which it
recipient knows that the instrument is appears that a person is attempting to Part II
being used in an attempt to avoid the cause Form 8300 not to be filed, or to Item 15. If the transaction is being
reporting of the transaction under either file a false or incomplete form. conducted on behalf of more than one
section 6050I or 31 U.S.C. 5331. person (including husband and wife or
Note. Cash does not include a check Specific Instructions parent and child), check the box and
drawn on the payer’s own account, such complete Part II for any one of the
You must complete all parts. However, persons. Provide the same information
as a personal check, regardless of the you may skip Part II if the individual
amount. for the other person(s) on the back of
named in Part I is conducting the the form. If more than three persons are
Designated reporting transaction. A transaction on his or her behalf only. For involved, provide the same information
retail sale (or the receipt of funds by a voluntary reporting of suspicious on additional sheets of paper and attach
broker or other intermediary in transactions, see Item 1 next. them to this form.
connection with a retail sale) of a Item 1. If you are amending a report,
consumer durable, a collectible, or a Items 16 through 19. If the person on
check box 1a. Complete the form in its whose behalf the transaction is being
travel or entertainment activity. entirety (Parts I-IV) and include the conducted is an individual, complete
Retail sale. Any sale (whether or not amended information. Do not attach a items 16, 17, and 18. Enter his or her
the sale is for resale or for any other copy of the original report. TIN in item 19. If the individual is a sole
purpose) made in the course of a trade To voluntarily report a suspicious proprietor and has an employer
or business if that trade or business transaction (see Suspicious transaction identification number (EIN), you must
principally consists of making sales to above), check box 1b. You may also enter both the SSN and EIN in item 19.
ultimate consumers. telephone your local IRS Criminal If the person is an organization, put its
Consumer durable. An item of tangible Investigation Division or call the FinCEN name as shown on required tax filings in
personal property of a type that, under Financial Institution Hotline at item 16 and its EIN in item 19.
ordinary usage, can reasonably be 1-866-556-3974. Item 20. If a sole proprietor or
expected to remain useful for at least 1 organization named in items 16 through
year, and that has a sales price of more Part I 18 is doing business under a name other
than $10,000. Item 2. If two or more individuals than that entered in item 16 (for
Collectible. Any work of art, rug, conducted the transaction you are example, a “trade” or “doing business
antique, metal, gem, stamp, coin, etc. reporting, check the box and complete as (DBA)” name), enter it here.
Travel or entertainment activity. An Part I for any one of the individuals. Item 27. If the person is not required to
item of travel or entertainment that Provide the same information for the furnish a TIN, complete this item. See
pertains to a single trip or event if the other individual(s) on the back of the Taxpayer identification number (TIN),
combined sales price of the item and all form. If more than three individuals are earlier. Enter a description of the type of
other items relating to the same trip or involved, provide the same information official document issued to that person
event that are sold in the same on additional sheets of paper and attach in item 27a (for example, a “passport”),
transaction (or related transactions) them to this form. the country that issued the document in
exceeds $10,000. Item 6. Enter the taxpayer identification item 27b, and the document’s number in
number (TIN) of the individual named. item 27c.
See Taxpayer identification number (TIN),
earlier, for more info rm
4 ation.
2221
1
IRS Form 8300 (Rev. 11-2011) Page 5 FinCEN Form 8300 (Rev. 11-2011)
Note. You must complete all three items Item 41. Fully describe the nature of Generally, tax returns and return
(a, b, and c) in this line to make sure that your business, for example, “attorney” or information are confidential, as stated in
Form 8300 will be processed correctly. “jewelry dealer.” Do not use general or section 6103. However, section 6103
nondescriptive terms such as “business” allows or requires the IRS to disclose or
Part III or “store.” give the information requested on this
Item 28. Enter the date you received the Item 42. This form must be signed by an form to others as described in the
cash. If you received the cash in more individual who has been authorized to Internal Revenue Code. For example, we
than one payment, enter the date you do so for the business that received the may disclose your tax information to the
received the payment that caused the cash. Department of Justice, to enforce the tax
combined amount to exceed $10,000. laws, both civil and criminal, and to
See Multiple payments, earlier, for more Comments cities, states, the District of Columbia,
information. Use this section to comment on or and U.S. commonwealths and
clarify anything you may have entered possessions, to carry out their tax laws.
Item 30. Check this box if the amount We may disclose this information to
shown in item 29 was received in more on any line in Parts I, II, III, and IV. For
example, if you checked box b other persons as necessary to obtain
than one payment (for example, as information which we cannot get in any
installment payments or payments on (Suspicious transaction) in line 1 above
Part I, you may want to explain why you other way. We may disclose this
related transactions). information to federal, state, and local
think that the cash transaction you are
Item 31. Enter the total price of the reporting on Form 8300 may be child support agencies; and to other
property, services, amount of cash suspicious. federal agencies for the purposes of
exchanged, etc. (for example, the total determining entitlement for benefits or
cost of a vehicle purchased, cost of the eligibility for and the repayment of
catering service, exchange of currency) if Privacy Act and Paperwork Reduction loans. We may also provide the records
different from the amount shown in item Act Notice. Except as otherwise noted, to appropriate state, local, and foreign
29. the information solicited on this form is criminal law enforcement and regulatory
Item 32. Enter the dollar amount of each required by the IRS and FinCEN in order personnel in the performance of their
form of cash received. Show foreign to carry out the laws and regulations of official duties. We may also disclose this
currency amounts in U.S. dollar the United States Department of the information to other countries under a
equivalent at a fair market rate of Treasury. Trades or businesses, except tax treaty, or to federal and state
exchange available to the public. The for clerks of criminal courts, are required agencies to enforce federal nontax
sum of the amounts must equal item 29. to provide the information to the IRS and criminal laws and to combat terrorism. In
For cashier’s check, money order, bank FinCEN under both section 6050I and 31 addition, FinCEN may provide the
draft, or traveler’s check, provide the U.S.C. 5331. Clerks of criminal courts information to those officials if they are
name of the issuer and the serial number are required to provide the information conducting intelligence or
of each instrument. Names of all issuers to the IRS under section 6050I. Section counter-intelligence activities to protect
and all serial numbers involved must be 6109 and 31 U.S.C. 5331 require that against international terrorism.
provided. If necessary, provide this you provide your social security number You are not required to provide the
information on additional sheets of paper in order to adequately identify you and information requested on a form that is
and attach them to this form. process your return and other papers. subject to the Paperwork Reduction Act
Item 33. Check the appropriate box(es) The principal purpose for collecting the unless the form displays a valid OMB
information on this form is to maintain control number. Books or records
that describe the transaction. If the
reports or records which have a high relating to a form or its instructions must
transaction is not specified in boxes a–i,
degree of usefulness in criminal, tax, or be retained as long as their contents
check box j and briefly describe the
regulatory investigations or proceedings, may become material in the
transaction (for example, “car lease,”
or in the conduct of intelligence or administration of any law under 26
“boat lease,” “house lease,” or “aircraft
counterintelligence activities, by U.S.C. or 31 U.S.C.
rental”). If the transaction relates to the
directing the federal government’s
receipt of bail by a court clerk, check The time needed to complete this form
attention to unusual or questionable
box i, “Bail received by court clerks.” will vary depending on individual
transactions.
This box is only for use by court clerks. circumstances. The estimated average
If the transaction relates to cash You are not required to provide time is 21 minutes. If you have
received by a bail bondsman, check box information as to whether the reported comments concerning the accuracy of
d, “Business services provided.” transaction is deemed suspicious. this time estimate or suggestions for
Failure to provide all other requested making this form simpler, you can write
Part IV information, or providing fraudulent to the Internal Revenue Service, Tax
information, may result in criminal Products Coordinating Committee,
Item 36. If you are a sole proprietorship,
prosecution and other penalties under SE:W:CAR:MP:T:M:S, 1111 Constitution
you must enter your SSN. If your
26 U.S.C. and 31 U.S.C. Ave. NW, IR-6526, Washington, DC
business also has an EIN, you must
provide the EIN as well. All other 20224. Do not send Form 8300 to this
business entities must enter an EIN. address. Instead, see Where to file,
earlier.

222
 FTC Business Alert
Federal Trade Commission Ŷ Bureau of Consumer Protection Ŷ Division of Consumer & Business Education

New 'Red Flag' Requirements for Institutions and

Creditors Will Help Fight Identity Theft

Identity thieves use people's personally identifying information to open new accounts and misuse
existing accounts, creating havoc for consumers and businesses. institutions and creditors soon will be
required to implement a program to detect, prevent, and mitigate instances of identity theft.
The Federal Trade Commission (FTC), the federal bank regulatory agencies, and the National Credit
Union Administration (NCUA) have issued regulations (the Red Flags Rules) requiring financial
institutions and creditors to develop and implement written identity theft prevention programs, as part of
the Fair and Accurate Credit Transactions (FACT) Act of 2003. The programs must be in place by
November 1, 2008, and must provide for the identification, detection, and response to patterns, practices,
or specific activities — known as "red flags" — that could indicate identity theft.

W H O M U S T C O M P L Y W IT H T H E R E D F L AG S R U L E S ?

The Red Flags Rules apply to "financial institutions" and "creditors" with "covered accounts."
Under the Rules, a institution is defined as a state or national bank, a state or federal savings and
loan association, a mutual savings bank, a state or federal credit union, or any other entity that holds a
"transaction account" belonging to a consumer. Most of these institutions are regulated by the Federal
bank regulatory agencies and the NCUA. institutions under the FTC's jurisdiction include state-chartered
credit unions and certain other entities that hold consumer transaction accounts.
A transaction account is a deposit or other account from which the owner makes payments
or transfers. Transaction accounts include checking accounts, negotiable order of withdrawal
accounts, savings deposits subject to automatic transfers, and share draft accounts.
A creditor is any entity that regularly extends, renews, or continues credit; any entity that regularly
arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who
is involved in the decision to extend, renew, or continue credit. Accepting credit cards as a form of
payment does not in and of itself make an entity a creditor. Creditors include finance companies,
automobile dealers, mortgage brokers, utility companies, and telecommunications companies. Where
non-profit and government entities defer payment for goods or services, they, too, are to be considered
creditors. Most creditors, except for those regulated by the Federal bank regulatory agencies and the
NCUA, come under the jurisdiction of the FTC.
A covered account is an account used mostly for personal, family, or household purposes, and
that involves multiple payments or transactions. Covered accounts include credit card accounts,
mortgage loans, automobile loans, margin accounts, cell phone accounts, utility accounts, checking
accounts, and savings accounts. A covered account is also an account for which there is a foreseeable
risk of identity theft - for example, small business or sole proprietorship accounts.

223
COMPLYING WITH THE RED FLAGS RULES

Under the Red Flags Rules, institutions and creditors must develop a written program that
identifies and detects the relevant warning signs — or "red flags" — of identity theft. These may
include, for example, unusual account activity, fraud alerts on a consumer report, or attempted use of
suspicious account application documents. The program must also describe appropriate responses that
would prevent and mitigate the crime and detail a plan to update the program. The program must be
managed by the Board of Directors or senior employees of the financial institution or creditor, include
appropriate staff training, and provide for oversight of any service providers.

HOW FLEXIBLE ARE THE RED FLAGS RULES?

The Red Flags Rules provide all financial institutions and creditors the opportunity to design
and implement a program that is appropriate to their size and complexity, as well as the nature of
their operations. Guidelines issued by the FTC, the federal banking agencies, and the NCUA
(ftc.gov/opa/2007/10/redflag.shtm) should be helpful in assisting covered entities in designing
their programs. A supplement to the Guidelines identifies 26 possible red flags. These red flags are
not a checklist, but rather, are examples that institutions and creditors may want to use as a starting
point. They fall into five categories:
x alerts, notifications, or warnings from a consumer reporting agency;
x suspicious documents;
x suspicious personally identifying information, such as a suspicious address;
x unusual use of — or suspicious activity relating to — a covered account; and
x notices from customers, victims of identity theft, law enforcement authorities, or other businesses
about possible identity theft in connection with covered accounts.
More detailed compliance guidance on the Red Flags Rules will be forthcoming. For questions
about compliance with the Rules, you may contact RedFlags@ftc.gov.

The FTC, the nation's consumer protection agency, works to prevent fraudulent, deceptive, and unfair
business practices in the marketplace and to provide information to help consumers spot, stop, and avoid
them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-
877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing,
identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database
available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

YOUR OPPORTUNITY TO COMMENT

The National Small Business Ombudsman and 10 Regional Fairness Boards collect comments from
small businesses about federal compliance and enforcement activities. Each year, the Ombudsman
evaluates the conduct of these activities and rates each agency's responsiveness to small businesses. Small
businesses can comment to the Ombudsman without fear of reprisal. To comment, call toll-free 1-888-
REGFAIR (1-888-734-3247) or go to www.sba.gov/ombudsman.

FEDERAL TRADE COMMISSION ftc.gov

1-877-FTC-HELP FOR THE CONSUMER

J u ne 2 00 8
224
SECTION6

Q28: Adequately securing customer information is not only the law, it makes good business sense. When
you show customers that you care about the security of their personal information, you increase their level
of confidence in your institution.
A. True.
B. False.

Q29: The Safeguards Rule requires financial institutions to develop a written information security plan
that describes their program to protect customer information.
A. True.
B. False.

Q30: Federal law requires that any person engaged in a trade or business that receives cash in excess of
$ in a single transaction or in related transactions must file, IRS Form 8300.
A. $5,500.00
B. $10,000.00
C. $15,000.00
D. $20,000.00

Q31: Institutions and creditors must develop a written program that identifies and detects the
relevant warning signs — or "red flags" — of identity theft.
A. True.
B. False.

225
Section 7

Emissions and
Environmental
Issues

226
 Air Pollution Control Equipment and Tampering
Both Federal and Florida law prohibit the tampering with vehicle pollution control equipment.
Furthermore, it is unlawful for any person or motor vehicle dealer to offer or display for retail
sale or lease, sell, lease, or transfer title to, a motor vehicle in Florida that has been tampered
with. Tampering is defined as the dismantling, removal, or rendering ineffective of any air
pollution control device or system which has been installed on a motor vehicle by the vehicle
manufacturer except to replace such device or system with a device or system equivalent in
design and function to the part that was originally installed on the motor vehicle.

Examples of Tampering:

- Replacing a catalytic converter with a straight pipe or removing the material inside a catalytic
converter.
- Punching out or enlarging an unleaded fuel filler hole to accommodate a leaded fuel nozzle.
- Disconnecting an air pump belt.
- Removing or plugging hoses or disconnecting any mechanical portion of any emission
control system.
- Exchanging an engine without repairing or replacing emission control devices.
- Disabling the computer or exchanging the computer PROM chip with another that does not
meet EPA requirements.
- Replacing an engine from an earlier year or installing an engine not approved by the
manufacturer's specifications.

Motor Vehicle Exempt From The Anti-Tampering Law:

- Motor Vehicles which have net weights greater than 5000 pounds or gross weights greater
than 10,000 pounds.
- Motor Vehicles which are designated as 1974 or older.
- Motorcycles, mopeds, scooters, and golf carts.
- Farm vehicles, as defined in Section 320.51, F. S.
- Imported non-conforming motor vehicles that are exempt from federal emission control
requirements (40 CFR 85, Subpart P). These vehicles should have documentation from the
EPA that they are exempt.

Inspecting Vehicles:

To ensure that vehicles have not been tampered with, dealers must inspect each vehicle because it
is unlawful to offer or display for retail sale or lease, sell, lease or transfer title to a non-exempt
motor vehicle that has been tampered with. There are exceptions to this requirement and they are:

- Wholesale transactions,
- First time sales/leases of new motor vehicles subject to certification under Section 207, Clean
Air Act, 42 U.S.C.,7541 (meeting federal emission standards),
- Lease agreements for 30 days or less,
- Sales for salvage purposes only,

227
- Sales to dealers by private parties where the dealer elects not to receive the certification,
- Sales, reassignments, and transfers from a vehicle manufacturer to a dealer holding a
franchise agreement.

Certification of Air Pollution Control Devices and Systems:

Effective January 1, 1991, every dealer, at the time of sale, lease or transfer, must certify in writing
to the purchaser, lessee, or transferee that the air pollution control equipment of the motor vehicle
has not been tampered with by the seller, lessor, or transferor or their agents, employees or other
representatives. A motor vehicle dealer must also visually observe the devices and certify that they
are in place, appear properly connected and undamaged. (Note: this applies to all dealers in all
counties in Florida!)

The air pollution emission control devices and systems that a dealer must certify are in place,
properly connected and undamaged include the following:

Model Years 1975-1980: Model Years 1981 or Newer:

Three point check: Six-point check:

1. Catalytic Converter 1. Catalytic Converter
2. Fuel Inlet Restrictor 2. Fuel Inlet Restrictor
3. Unvented Fuel Cap 3. Unvented Fuel Cap
4. Exhaust Gas Recirculation System (EGR)
5. Air Pump and/or Air Injection System (AIS)
6. Fuel Evaporative Emissions System (EVP)

The certification form also states that: "This certification shall not be deemed or construed as a
warranty that any air pollution control device or system of the vehicle is in functional condition,
nor does the execution or delivery of this certification create by itself grounds for a cause of
action between the parties of this transaction".

The certification form must include the year, make, model and VIN of the vehicle and include the
buyer's and seller's names and signatures, and the date. See Exhibit EE-1 for the prescribed format.
These forms are not provided by the state; however, they may be purchased through FIADA.
Note: Hillsborough County has its own certification form that must be used because it requires
additional items that must be checked pursuant to county ordinance (see Exhibit EE-2
for this form).

228
Failure to Comply:

Florida's anti-tampering law (Section 316.2935, Florida Statutes) shall be enforced by the
Department of Environmental Protection and any law enforcement officer in Florida.

- For a first violation, violators shall be guilty of a misdemeanor of the second degree, except
that a licensed motor vehicle dealer shall be guilty of a misdemeanor of the first degree.
- For a second or subsequent offense, violators, including motor vehicle dealers, shall be guilty
of a misdemeanor of the first degree. In addition, the Department of Highway Safety and
Motor Vehicles may temporarily or permanently revoke or suspend the motor vehicle dealer's
license.

Motor Vehicle Air Conditioner Repairs:

In response to concerns about the ozone layer of the stratosphere being contaminated by manmade
chemicals, including chlorofluorocarbons (CFCs) and halons, the Florida Legislature enacted
legislation that requires certain action on the part of establishments that install or service air
conditioners or that, in the course of doing collision repair or changing parts of or salvaging or
dismantling motor vehicles, releases or may release refrigerants shall not perform that activity
without the use of approved refrigerant recycling equipment. Such establishments may not
intentionally vent or dispose of chlorofluorocarbons or their halogenated substances into the
atmosphere. Each establishment shall have mechanics, trained in the proper operation and
maintenance of refrigerant recycling equipment and in the proper procedures for recovering and
recycling used refrigerants from motor vehicle air conditioners, performing or supervising these
services at all times. A person convicted of violating these requirements is liable for a civil
penalty of $100 per incident, up to $1,000 per day.

Other Concerns:

As a motor vehicle dealer you will be involved in minor vehicle maintenance, such as washing
and waxing vehicles. Products used in cleaning solvents and car washes contain environmentally
harmful substances. Of course oil and lead acid batteries must be properly disposed of as well. If
you are involved in any of these processes, you may want to check with the local environmental
protection offices for specific information for proper operating and disposal requirements.

229
 List of Exhibits

231
Exhibit EE-1: Certification of Pollution Control Devices or Systems .....................

232
Exhibit EE-2: Certification of Pollution Control Devices (Hillsborough Co.) .......

230
Glue

CERTIFICATION OF POLLUTION CONTROL DEVICES OR SYSTEMS

Exhibit EE-1
FLORIDA LAW PROHIBITS THE OPERATION, SALE, LEASE, OR TRANSFER OF TITLE OF ANY AUTOMOBILE
OR LIGHT-DUTY TRUCK (1975 OR NEWER, 10,000 POUNDS GROSS VEHICLE WEIGHT OR LESS) THAT HAS
BEEN TAMPERED WITH. “TAMPERING” MEANS THE DISMANTLING, REMOVAL, OR RENDERING
INEFFECTIVE OF ANY AIR POLLUTION CONTROL DEVICE OR SYSTEM WHICH HAS BEEN INSTALLED ON A
MOTOR VEHICLE BY THE VEHICLE MANUFACTURER EXCEPT TO REPLACE SUCH DEVICE OR SYSTEM WITH
A DEVICE OR SYSTEM EQUIVALENT IN DESIGN AND FUNCTION TO THE PART THAT WAS ORIGINALLY
INSTALLED ON THE MOTOR VEHICLE. (316.2935, F.S.)
AS A MOTOR VEHICLE DEALER LICENSED TO CONDUCT BUSINESS IN THE STATE OF FLORIDA, I HEREBY
CERTIFY THAT THE FOLLOWING AIR POLLUTION EMISSION CONTROL DEVICES AND SYSTEMS OF THIS
VEHICLE, IF INSTALLED BY THE VEHICLE MANUFACTURER OR IMPORTER, HAVE NOT BEEN TAMPERED
WITH BY ME OR BY MY AGENTS, EMPLOYEES, OR OTHER REPRESENTATIVES.

1975 - 1980 VEHICLES 1981 OR NEWER VEHICLES

CATALYTIC CONVERTER CATALYTIC CONVERTER

FUEL INLET RESTRICTOR FUEL INLET RESTRICTOR
UNVENTED FUEL CAP UNVENTED FUEL CAP
EXHAUST GAS RECIRCULATION SYSTEM (EGR) *

Sample
AIR PUMP AND/OR AIR INJECTION SYSTEM (AIS) *
FUEL EVAPORATIVE EMISSIONS SYSTEM (EVP) *

* (1981 AND NEWER VEHICLES ONLY)

I ALSO HEREBY CERTIFY THAT I OR PERSONS UNDER MY SUPERVISION HAVE INSPECTED THIS MOTOR
VEHICLE AND, BASED ON SAID INSPECTION, HAVE DETERMINED THAT THE ABOVE-LISTED AIR POLLUTION
CONTROL DEVICES AND SYSTEMS, IF INSTALLED BY THE VEHICLE MANUFACTURER OR IMPORTER, ARE IN
PLACE AND APPEAR PROPERLY CONNECTED AND UNDAMAGED AS DETERMINED BY VISUAL
OBSERVATION.
THIS CERTIFICATION SHALL NOT BE DEEMED OR CONSTRUED AS A WARRANTY THAT ANY AIR
POLLUTION CONTROL DEVICE OR SYSTEM OF THE VEHICLE IS IN FUNCTIONAL CONDITION, NOR DOES
THE EXECUTION OR DELIVERY OF THIS CERTIFICATION CREATE BY ITSELF GROUNDS FOR A CAUSE OF
ACTION BETWEEN THE PARTIES TO THIS TRANSACTION.

I FURTHER CERTIFY THAT A COPY OF THIS CERTIFICATION HAS BEEN PREPARED AND TENDERED BY THE
SELLER AND RECEIVED BY THE BUYER OF THE VEHICLE DESCRIBED BELOW.
DEALER’S (TRANSFEROR) NAME AUTHORIZED SIGNATURE DATE TENDERED

VEHICLE IDENTIFICATION
YEAR MAKE MODEL VEHICLE IDENTIFICATION NO.

RECEIPT OF A COMPLETED COPY ACKNOWLEDGED BY THE BUYER (TRANSFEREE)

I HEREBY ACKNOWLEDGE RECEIVING A COMPLETED COPY OF THIS DOCUMENT.

BUYER’S (TRANSFEREE) NAME / PRINT BUYER’S
231
SIGNATURE DATE RECEIVED

To Reorder Form #8301001 Contact Florida Independent Auto Dealers Association (FIADA), www.fiada.com, or call toll free 1-800-237-0448 Copyright © 2006, ADP Inc. All Rights Reserved. Florida (08/06)
Glue

CERTIFICATION OF POLLUTION CONTROL DEVICES OR SYSTEMS

Florida law prohibits the operations, sale, lease, or transfer of title of any automobile or light duty truck (1975 or newer,
10,000 pounds Gross Vehicle Weight or less) that has been tampered with. "Tampering" means the dismantling, removal,
or rendering ineffective of any air pollution control device or system which has been installed on a motor vehicle by the
vehicle manufacturer, except to replace such device or system with a device or system equivalent in design and function
to that which was originally installed on the motor vehicle (316.2935, F.S.)

AS A MOTOR VEHICLE DEALER LICENSED TO CONDUCT BUSINESS IN THE STATE OF FLORIDA, I HEREBY CERTIFY
THAT THE FOLLOWING AIR POLLUTION EMISSION CONTROL DEVICES AND SYSTEMS OF THIS VEHICLE, IF
INSTALLED BY THE VEHICLE MANUFACTURER OR IMPORTER, HAVE NOT BEEN TAMPERED WITH BY ME OR BY MY
AGENTS, EMPLOYEES, OR OTHER REPRESENTATIVES.
Exhibit EE-2

IN ACCORDANCE WITH CHAPTER 1-8, RULES OF THE ENVIRONMENTAL PROTECTION COMMISSION OF

HILLSBOROUGH COUNTY, ALL VEHICLES 1975 OR NEWER, IF SO ORIGINALLY EQUIPPED BY THE
MANUFACTURER MUST HAVE.

អ CATALYTIC CONVERTER (CAT) អ POSITIVE CRANKCASE VENTILATION (PCV)

អ FUEL INLET RESTRICTOR (FIR) អ THERMOSTATIC AIR CLEANER (TAC)
អ UNVENTED FUEL CAP (UVC) អ OXYGEN SENSOR (O2)
អ EXHAUST GAS RECIRCULATION (EGR) អ ALL RELEVANT VACUUM LINES, ELECTRICAL
អ AIR PUMP/AIR INJECTION SYSTEM (AIS) LINES, SENSORS, ETC. (M)

Sample
អ FUEL EVAPORATIVE EMISSIONS SYSTEM (EVP)

I ALSO HEREBY CERTIFY THAT I OR PERSONS UNDER MY SUPERVISION HAVE INSPECTED THIS MOTOR VEHICLE
AND, BASED ON SAID INSPECTION, HAVE DETERMINED THAT THE ABOVE LISTED AIR POLLUTION CONTROL
DEVICES AND SYSTEMS, IF INSTALLED BY THE VEHICLE MANUFACTURER OR IMPORTER, ARE IN PLACE AND
APPEAR PROPERLY CONNECTED AND UNDAMAGED AS DETERMINED BY VISUAL OBSERVATION.

THIS CERTIFICATION SHALL NOT BE DEEMED OR CONSTRUED AS A WARRANTY THAT ANY AIR POLLUTION
CONTROL DEVICE OR SYSTEM OF THE VEHICLE IS IN FUNCTIONAL CONDITION, NOR DOES THE EXECUTION OR
DELIVERY OF THIS CERTIFICATION CREATE BY ITSELF GROUNDS FOR A CAUSE OF ACTION BETWEEN THE
PARTIES TO THIS TRANSACTION.

I FURTHER CERTIFY THAT A COPY OF THIS CERTIFICATION HAS BEEN PREPARED AND TENDERED BY THE
SELLER AND RECEIVED BY THE BUYER OF THE VEHICLE DESCRIBED BELOW.

VEHICLE IDENTIFICATION
YEAR MAKE MODEL VEHICLE IDENTIFICATION NUMBER (VIN)

SELLER’S NAME (PRINT) AUTHORIZED SIGNATURE DATE TENDERED

RECEIPT OF A COMPLETED COPY ACKNOWLEDGED BY THE BUYER:

I HEREBY ACKNOWLEDGE RECEIVING A COMPLETED COPY OF THIS DOCUMENT.

BUYER’S NAME (PRINT BUYER’S SIGNATURE DATE RECEIVED

232

To Reorder Form #8301002 Contact Florida Independent Auto Dealers Association (FIADA), www.fiada.com, or call toll free 1-800-237-0448 Copyright © 2006, ADP Inc. All Rights Reserved. Florida (08/06)
SECTION7

Q32: Examples of tampering include……

A. Replacing a catalytic converter with a straight pipe.
B. Disconnecting an air pump belt.
C. Replacing an engine from an earlier year.
D. All the above.

Q33: Every dealer, at the time of sale, lease or transfer, must certify in writing to the purchaser, lessee, or
transferee that the air pollution control equipment of the motor vehicle has not been tampered with.
A. True.
B. False.

233
Section 8

Dealer
Financial
Operations

234
 Dealer Operations
So You Want To Go Into The Car Business?

The dream of many, if not most Americans, is to own their own business and be independently
wealthy. Certainly no easy task, however it is possible to achieve success in the motor vehicle
industry. Statistics show that 72 percent of all businesses survive after three years and 37 percent
are still operating successfully after six years. The car business is no different than any other
business. As in all businesses, the ones who were able to stay in business after six years knew
something those others didn't. As a result, they achieved goals and rewards that made the struggle
worthwhile. With proper planning and capitalization, coupled with proper decision making you
can and will succeed!

The Entrepreneurial Spirit

Enough can't be said about the entrepreneurial spirit, the drive from inside of us that causes us to
act upon our "dreams" of owning and operating our own business. Entrepreneurs come in all sizes
and shapes. Some succeed, some don't. Of those that succeed, some do so quicker than others.
For a very few, the entrepreneurial drive comes natural, for many this drive is an
acquired tendency to achieve success. It's a drive so forceful, that after failing even once, most
entrepreneurs recover quickly and try again. Most learn from their mistakes and those of others.
The key is to determine what you don't know, then take steps to compensate for this lack of
knowledge.

Where Do I Stand?

One way to know where you stand in terms of starting your own business is to ask yourself some
important questions. An honest self-appraisal will assist in revealing where you stand. Remember
though, you must be honest!

The checklist on the next page will serve as a guide to whether you are prepared to start a business
of your own. The more questions you can answer with a "yes" the higher your current level of skills
and knowledge as a potential business owner. But don't be discouraged if you don't score well. The
purpose of this checklist is to give you a starting point for correcting any shortcomings you have.

Take the time to complete this check list to see where you stand. After you complete the self-test,
think about how you can turn the "no" answers to "yes". That's the start of your plan of action to
succeed.

1. Are you aware of your greatest strengths and weaknesses?

2. Do you seek help when you need it rather than attempting to do everything
by yourself?
3. Do you know where to look for help?
4. Do you know how to approach potential sources of capital?
5. Are you aware of all your options for raising capital?

235
 6. Do you have a written business plan?
7. Is your record-keeping system geared to supplying good information for
making business decisions?
8. Do you know how to make projections?
9. Do you have a basic grasp of tax laws?
10. Are you managing your own time effectively?
11. Can you delegate work to others without problems?
12. Are you confident you can hire the right people?
13. Can you develop a marketing plan?
14. Can you mobilize a sales force effort effectively?
15. Do you have access to proper advertising professionals?
16. Can you keep credit under control?
17. Can you negotiate the best possible terms with suppliers?
18. Do you consider yourself well-informed on the subject of business law?
19. Can you select the best insurance for your business?
20. Do you have the best legal form or organization for your business?
21. Are you able to predict the stage of growth your business will reach in one
year, three years, and five years?

The "Right Stuff'

So now you know where you stand in terms of skills and knowledge that it takes to go into
business. Consider what else it takes to succeed in a business of your own. Maybe you've always
thought that entrepreneurs are different from other people. And chances are you've asked yourself
the question, "Do I have the right stuff?" Here are a number of characteristics shared by successful
business people:

1. An eye for opportunity 7. Adaptability

2. An appetite for hard work 8. Good judgment
3. Self-discipline 9. An ability to tolerate stress
4. Independence 10. A need to achieve
5. Self-confidence 11.A focus on profits
6. Self-awareness

Okay, now you know where you stand and you possess the right stuff, so why not go into
business? If you have an answer to that question, then go back to the self-assessment checklist.

Structuring Your Business

Typically in the car business you see four types of business organizations to choose from. Before
you choose yours, it is highly suggested that you seek qualified professional guidance from
attorneys and/or CPAs.

1. Sole ownership (proprietorship).

2. Partnership
3. Corporation
4. Limited Liability Company

236
Each organization has its advantages and disadvantages when compared with the others.

Sole Ownership

The most popular structure is the sole ownership. In this arrangement, you are the business and the
business is you. This means that you, personally, are liable for all the debts and commitments of the
business. It also means that your assets are the only resources the business has available.

Here are some of the pros and cons of a sole ownership:

Major Advantages:
- Is easiest and least expensive business entity to get started.
- Offers greatest freedom of action.
- Requires fewer regulatory and reporting activities than other forms of business
organizations.
- Gives owner maximum authority, allowing quick decisions when necessary.
-x Provides income-tax benefits.

Major Disadvantages:
- Exposes owner to unlimited personal liability.
- Endangers future business when owner dies or is disabled.
- Limits growth to owner's personal energies.
- Often mixes personal affairs with business operations.
- Limits ability to raise capital to owner resources.

Partnership

Partnerships are practical business arrangements that allow two or more parties to expand their
business parameters, improve their access to resources, and add capabilities to their existing firm.

Here are some of the pros and cons of a partnership:

Major Advantages:
- Allows owners to share ideas, skills, responsibilities, and workloads.
- Provides additional sources of venture capital.
- Usually has better credit rating than a corporation of similar size.
- Avoids double taxation on profit and dividends.

Major Disadvantages:
- Exposes owners to unlimited personal liability.
- Endangers future of business when one partner withdraws.
- Lacks clear lines of authority.
- Lacks capacity to get rid of a bad partner.

237
Corporation

Some businesses start up as corporations, which are treated as separate entities with a life of their
own. Incorporation, the act of creating a corporation, is governed by state laws, and the specific
requirements for Florida corporations may be obtained from the Florida Secretary of State.

As a corporation, your business is authorized to issue a specified number of shares of stock,

which can be bought and sold. Each share of stock represents ownership in the corporation, and
each shareholder owns a percentage of the corporation equal to the percentage of stock held.

Here are some of the pros and cons of incorporation:

Major Advantages:
- Limits liability of shareholders, including the owners, to the amount each has invested
(but not, of course, personal assets used as security for any loans).
- Offers continuity when business owner or owners die or are disabled.
- Allows the separation of business functions based on the skills and abilities of the
principals.
- Allows flexibility in the transfer of ownership.

Major Disadvantages:
- Is expensive to launch.
- Is more heavily taxed than other business organizations.
- Limits power to charter.
- Provides less freedom of activity for owners than other business organizations.
- Has strict legal formalities and regulations.

A type of corporation known as the "S corporation" has one major advantage that the "C
corporation" discussed above does not have: The owners are taxed as if they are partners instead of
shareholders who are taxed at their individual tax rate. Such corporations are, however, limited to
75 shareholders and those shareholders may have only one class of stock.

Limited Liability Company

Limited Liability Companies or LLCs, as they are known, are a hybrid form of business that
combines the elements of partnerships and corporations. LLCs must file initially with the Florida
Department of State.

Major Advantages:
- May elect to be taxed as either a partnership or corporation.

238
Start-Up Money

The number one reason that businesses fail is attributed to a lack of capital. When a car dealer is
undercapitalized from the start it won't take long for the business to fail. Unfortunately, many
other problems follow a dealer's closure: law suits from customers, possible criminal charges for
failing to provide title certificates for cars not paid for; tax liens by the IRS and the Florida
Department of Revenue; and the list goes on. Not only is the business ruined, but lack of
credibility and poor credit ratings of the owners inhibit their ability to ever get back into the car
business.

What Could It Take?

Let's take a look at a fictitious used car dealer and review some typical start up costs (right
column) and monthly recurring costs (left column). Keep in mind that these costs are not all
inclusive and may be more or less, depending on the type of business. For example, startup
capital for franchised dealers and RV dealers will be significantly higher.

Case Study: Two partners, Bill and Jane form an "S" corporation and plan to sell used cars and
trucks in the $4,000 to $7,000 range. They plan to have an average inventory of 10 to 15 vehicles
at any given time. They hope to sell 5 to 7 cars each month at retail and at least that many
wholesale. The cars will be sold retail for cash, on the lot financing and third party financing. Cars
that are sold wholesale will be sold at auctions and to other dealers direct.

Bill and Jane's Auto Sales, Inc. 123 Elm Street Anywhere Florida 33300-4321

Monthly Recurring Costs Start-up Costs

Lot rent: $1,200 1st/last/deposit: $3,600

Utilities: 300 Deposit: 300
Communications: 350 Install/deposits: 300
Insurance (lot): 116 Quarterly: 350
Corporate filing: 78
Using attorney: 250
Surety bond: 375
Garage liability: 3,200
DOR license: 5
Finance License: 175
County Occupational License: 25
City License: 125
Signs: 1,000
Advertising: 300 300
Supplies: 300
Computer: 2,500
Office furniture (used): 500
Bookkeeping: 150 Start up: 300
Inventory: 12,000 Start up: 36,000
Recon/repairs/tires etc: 4,000 Start up: 6,000
Bill/Jane's Salary and benefits: ? ? ?
$18,716 $55,383

239
So far, do you think Bill and Jane are going to make it? Well, it's too early to tell because we
don't know how many cars they will actually sell and how much profit they make per vehicle.
Let’s say they do sell 9 cars retail the first month and make $1,500 dollars profit per vehicle
(average). Let's also say that they sold 7 cars wholesale that month and made $200 profit per sale
(average after auction fees, transportation and recon/repairs). That means Bill and Jane made a
gross profit of $14,900 their first month. If you notice, Bill and Jane did not factor in a salary or
any benefits, such as health and disability or retirement plan. This means that Bill and Jane need
to have more cash reserves and need to sell more cars or make a higher profit per sale or reduce
overhead while maintaining the same sales to increase profits. Here again no easy task! What
would you do?

Sources of Money

From our case study, we can see that Bill and Jane are going to need at least $125,000 in start-up
capital to keep them going for two or three months. But then what? How fast do the profits come
in if a vehicle is sold through on the lot financing (buy-here pay-here) or if contracts are sold to
subprime lenders at 60%? There are many other factors that can affect the outcome of business
that an owner must be prepared for to "weather the storm". Of course, this means money. Here are
a few sources for start-up money:

- You: A business person is always the first source of capital to start a business. As a matter of
fact, 48% of all small businesses are funded by the owner. However, you don't want to tie
up all your own funds. If you are personally going to a lender for funds consider the
following as security:
1. Real estate
2. Stocks and bonds
3. Vehicles, boats, RVs and mobile homes
4. Collectibles (art, rare coins, antiques etc.)
5. A life insurance policy
6. Good credit for a personal loan (signature loan)
7. Money in savings or retirement accounts
8. A co-signor by a wealthy friend or relative
9. Equity in your business (usually offered to a venture capitalist)

- Friends and Relatives: After you've put up some of your own money, friends and relatives
are probably a source of additional funding. However, don't promise an unrealistic return.
Some may want to "use" your license to buy and sell vehicles; be careful this can cause
many problems. Some may want you to sign a contract and make payments, with interest.
Others may consider themselves as your partner. Regardless of the arrangement, friends
and relatives expect to be paid back and until they are paid back, you will see or hear from
them regularly

- Working Partner: Many sole owners take on a working partner who makes an investment
and shares in the running of the business. This person brings cash and experience to the
business. If you intend to go this route consider structuring your business as a partnership
to begin with to avoid having to make a change later on. You may also want to consider

240
 forming a corporation instead. In either case you and the other partner(s) need to sit down
with your advisor to discuss the pro and cons. Additionally, a written document that spells
out the business duties and responsibilities can prevent internal problems later on.

- Commercial Banks: Commercial banks and lenders are generally a source of funds for
businesses after they have been in business for a while and have established their credit
standing. Banks are cautious about lending start-up money for proposed new businesses.
Regardless, you need to have sufficient collateral and a good business plan.

Inventory Financing

Floor planning: Many dealers have to rely on a popular source to finance their inventory of
vehicles. Typically dealers will enter into an agreement with a company that "floor plans"
vehicles. This means that the floor planner will advance the money to the dealer to purchase the
vehicle. The dealer gives the floor planner the title certificate to hold until the vehicle is sold.
Generally the floor planner will charge interest on the balance owed on the floor plan. Once the
car is sold, the dealer pays the floor planner, who in turn releases the title. (It's similar to a line of
credit) Many auctions are providing floor plan assistance on-site at auctions to make it easy for
dealers to purchase vehicles. Most floor plan companies are reputable licensed companies;
however, there are some "private" investors who will floor plan dealers. Often these are persons
who were in the car business and lost their license and need a licensed dealer to work with. Be
careful of this type of arrangement! Remember, as a licensee you are responsible for everything
that takes place under your license.

Consignments: There are some dealers who will increase their inventory by taking vehicles "on
consignment" from private individuals. This can be risky because the owner may owe more on
the vehicle than it is worth. However, there is nothing to prevent a dealer from selling cars on
consignment. There are some things a dealer must have to protect both the dealer and seller. The
dealer must have a well worded consignment agreement that spells out the terms of the
consignment agreement. The dealer must also have proof of ownership and the ability to
negotiate the title after the sale. This means that the dealer must have an assigned title certificate
from the owner or a copy of the title (back and front) in the owner's name and a legally
acceptable form of power of attorney. If the title is being held by a lienholder or lost, the owner
can appoint the dealer as attorney in-fact using the secure power of attorney (form HSMV-
82995).

The Division of Motorist Services does not recognize consignments between dealers. This is due
to the fact that a dealer must have a duly assigned certificate of title from the time the dealer
acquires the vehicle until he disposes of it. This is not possible in a "true" consignment between
dealers. If another dealer puts his vehicles on your lot for sale, you will have to have the titles
reassigned to your dealership.

Auctions: Dealers can auction vehicles "wholesale" from the premises of the dealership. Dealers
who bring their vehicles to an "independent" (VI) dealer to auction a vehicle must reassign the
title to the dealer who auctions the vehicle. (Normally reassignment would not occur unless the
vehicle is sold.) The same would apply in a case where an independent dealer auctioned off
privately owned vehicles. Don't confuse this with a consignment. This is an auction transaction
only.

241
Consumer Financing

"Traditional" Bank Financing: This is the kind of financing that most dealers like because the
consumer has good credit and can go to their own bank or credit union and negotiate a loan before
or during the purchase of a vehicle. For late model vehicles these folks have very little problems.
The older the vehicle, the less customers may be able to finance, thereby requiring a higher down
payment. For inexpensive vehicles, these buyers often secure a signature loan and pay cash for the
vehicle.

"Buy Here Pay Here": Many dealers are entering into the buy here/pay here lot financing
business because of the large numbers of buyers in the market place today who cannot get
traditional financing, but have the desire and ability to make payments on a vehicle. This is a risky
business because there is traditionally a 15% to 25% default rate (or higher) by consumers. In
many cases the consumer takes off with the car and the car is never found or it is left abandoned in
worse shape than when it was sold. Another important factor a dealer must realize in this type of
business is that the cash coming in from the sale of the vehicle is not immediate; however, there is
an immediate drain on the dealer's funds to pay for inventory and pay bills. Any dealer who
intends to go into the buy here/pay here business must forecast what the cash flow will be over an
extended period of time.

"Third Party Financing": In this arrangement, the dealer has one or more lenders that are
willing to buy the dealer's contracts, usually at discount. This allows the dealer to get immediate
cash for a vehicle that is then financed through the third party lender. Lenders who purchase
contracts (or "paper") from dealers who sell to consumers with less than perfect credit are known
as "subprime lenders." The lender will probably set up a "reserve account" to rebate earned
interest or provide "kickbacks" to the dealer for sending the finance company business. The
taxation by the IRS of reserve accounts has been a hot topic among dealers using subprime
lenders. The National Independent Automobile Dealers Association has worked closely with the
IRS on this issue. It is highly recommended that a dealer discuss this issue with their CPA. Some
CPAs are not aware of the action taken by the NIADA with respect to dealer reserve accounts —
be sure to ask your CPA about this.

The subprime lender may want the dealer to be "on recourse," which means the dealer is
responsible for the loan if the consumer defaults. Whether the dealer will be on recourse may
depend on the credit rating of the purchaser, the type/age of vehicle and the amount of down
payment the consumer makes. Dealers must understand the terms of their "master agreement"
with the lender and the retail installment contract and security agreements. It may be worth the
cost to a dealer by having an attorney knowledgeable with this type business to review these
documents.

Industry Trends

The automobile has been around for some time now. The State of Florida registers over 13 million
vehicles annually! There's not one person in the state who is not "touched" by a motor vehicle in
some form or fashion. It's safe to say that everyone is dependent upon a vehicle for transportation,
whether it be a person's own vehicle, a cab, a family or friends vehicle, even an ambulance and
ultimately a hearse. Of course, we dread the latter two modes of transportation. The point is that

242
motor vehicles are not going away. Instead they are increasing in numbers. The number of vehicles
in a household is increasing and the number of people able to purchase a vehicle is increasing.

Let's face it, every new car (truck, RV) becomes a used vehicle the minute it drives off the
showroom floor. The slogan of the NIADA makes sense: "everyone drives a used car." Of course
all those used cars are eventually sold or traded. In Florida, there's a good chance that a great
number of those 13 million vehicles will end up on a used car lot for sale or will be wholesaled by
a used car dealer at one of the many auto auctions in Florida.

A 1994 Economic Study of the Significance of the Used Car Industry estimated that the used car
industry contributed the following:

- contributes more than $2.3 billion per year to the Florida economy;
- directly and indirectly adds more than $105 million to the treasuries of the State of
Florida's local governments;
- provides automobiles to lower income households who benefit from the important and
efficient brokering (selling) service which the industry provides;
- makes available to lower income households the transportation services needed to be
gainfully employed in this modern age.

During the last several years the number of independent (used car) dealers has remained somewhat
constant at a level of about 8,000. The number of new dealers coming into the business
approximates the number who goes out of business. Of those 8,000 dealers, it appears that less
than 5,000 dealers are actively engaged in regular retail sales. The number of dealers who sell 15
or more vehicles retail per month is even less. Of course, franchised (new car dealers) account for
over half of the used cars being retailed in Florida.

What remains constant in the motor vehicle industry appears to be the entry of small used car lots
that thrive under a variety of conditions. As was stated earlier, those that survive are those
businesses that are properly capitalized and have a valid business plan. Many new comers to the
industry are entering the buy here pay here part of the industry and/or the third party financing
business. Setting up Related Finance Companies has become popular with dealers nationwide. It
seems that selling cars and financing have come together and are an integral part of the business
plan of the used car dealer.

The motor vehicle industry is not without its threats. Here are a few areas of concern for the
industry:
- Government regulations: Used Car Lemon Laws Used Car
Warranty Laws Tougher
sanctions for violations
- More stringent environmental regulations
- Increased surety bond premiums and stricter underwriting criteria
- Increased garage liability insurance premiums
- Unlicensed "agents", exporters and curbstoners

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Here are some innovative things happening in the used car market place that are impacting certain aspects of the
industry:
- Mega-stores: These are large automotive groups that own a number of used car stores and in some cases are
combined with franchised stores. These mega stores range from up scale facilities with "one price" shopping to
buy here pay here operations.
- Internet sales: With the advent of computers in an increasing large number of homes and businesses,
individuals are beginning to purchase new and used cars via the Internet (e.g., e-Bay Motors,
AutoTrader.com). Many businesses are starting to provide such services. Auto auctions and wholesale buyers
are offering cars through the internet to dealers as well.
- Floor plan arrangements at auctions: Many auctions are providing direct floor planning or have arranged with
certain finance companies to provide for floor planning "on site" at auctions.
- Limited Branch Offices: Independent dealers are becoming "limited branch offices" of their local county tax
collector. This allows dealers to issue tags and registrations.

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SECTION8

Q34: Statistics show that 72 percent of all businesses survive after three years and 37 percent are still
operating successfully after six years. Why?
A. The ones who were able to stay in business after six years knew something those others didn't.
B. With proper planning and capitalization, coupled with proper decision making you can and will
succeed!
C. The successful achieved goals and rewards that made the struggle worthwhile.
D. All the above are true.

Q35: Sole Proprietors and Partnerships are a great way to minimize risk.
A. True.
B. False.

Q36: Consumer financing options might include……..

A. Traditional bank financing.
B. Buy Here Pay Here.
C. Third part financing.
D. All the above.

Q37: This industry changes constantly at all levels. It is important that to become successful and remain
successful the dealer seeks out competent advice from sources that he/she can rely upon such as….
A. The Florida Independent Automobile Dealers Association. (Used)
B. The National Independent Automobile Dealers Association.
C. The Florida Automobile Dealers Association. (Franchise)
D. The National Automobile Dealers Association.
E. Salvage, RV, Mobile Home and any other association related to the dealer’s business model.
F. All the above apply.

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Section 9

Dealer
Resources

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 VALUABLE WEB RESOURCE HOTLINKS ARE LISTED BELOW

Below is a list of government and industry web addresses that you will most
likely use most frequently as a licensed dealer. Please investigate how these
can benefit your dealership. As you grow your dealership may find other
websites of direct value.

Department of State: http://www.dos.state.fl.us

Division of Motorist Services: www.flhsmv.gov
Driver's License Check: https://services.flhsmv.gov/DLCheck/
Motor Vehicle Check: https://services.flhsmv.gov/MVCheckWeb/
Federal Trade Commission: http://www.ftc.gov
Used Car Rule: http://business.ftc.gov/documents/bus13-dealers-guide-used-
car-rule
Florida Independent Automobile Dealers Association: http://www.fiada.com
Florida Corporations and DBA (online) http://www.sunbiz.org
Florida Department of Financial Services: http://www.myfloridacfo.com/
Motor Vehicle Retail Seller license: http://www.flofr.com/finance/
Approved Insurance Companies: http://www.floir.com/companysearch/
Florida Department of Revenue: http://www.myflorida.com/dor/
Forms: http://www.myflorida.com/dor/forms/
Training: http://dor.myflorida.com/dor/taxes/education.html
Florida Statutes:
http://www.flsenate.gov/Laws/Statutes/?CFID=41611787&CFTOKEN=73937821
Florida Tax Collectors: http://www.floridataxcollectors.com/index.php
Note: Some tax collector offices provide tag and title training to dealers and
their employees. Check their email sites for schedules. The FIADA also
schedules this level training.
IRS: http://www.irs.gov/
$10,000+ reporting info: Publication 1544:
http://www.irs.gov/publications/p1544/ar02.html
NADA Pricing: http://www.nadaguides.com/home.aspx
National Independent Automobile Dealers Association: http://www.niada.com
SDN/No Fly/Terrorist Check List: http://sdnsearch.ofac.treas.gov/Default.aspx
Black Book: http://www.blackbookusa.com
DIVISION OF MOTORIST SERVICES Procedures Manual and Forms:
http://www3.flhsmv.gov/DivisionofMotoristServices/Proc/
DIVISION OF MOTORIST SERVICES Procedures Manual Updates Email
List: http://www3.flhsmv.gov/DivisionofMotorist
Services/Proc/Revisions/subscribe1.cfm
Florida Department of Law Enforcement (Reported Stolen):
http://pas.fdle.state.fl.us/pas/pashome.a

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249
 NOTE: TO RECEIVE THE MOST VALUE FROM THIS
INFORMATION CONTACT THE FIADA AND SCHEDULE
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OFFICERS AND DEALERSHIP PRINCIPALS FOR LIVE
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Successful dealers belong to the

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