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New Direct Purchase Procedures Effective January 2, 2011!

The Florida Legislature during the 2010 Legislative Session passed substantial changes to the law governing direct purchase of construction materials by a governmental entity. Changes to the governing statute, new administrative rule, and DOR publications on direct purchase now clearly define and set forth the strict requirements that governmental entities must follow in order to purchase construction materials tax exempt.

If you are a dealer or a contractor involved in a project where a governmental entity wishes to use direct purchase make sure they are aware of the new statute and rules. You should direct them to the official Florida Department of Revenue publications linked below, which can also be found through a search at The new tax publication and instructions promulgated by the Department of Revenue are very clear on many issues that have long been a problem for the construction industry and more clearly spell out the assumption of risk by the governmental entity as well as the inability of a contractor (and consequently the dealer) to reverse and rebill a transaction after shipment or delivery.


  • The governmental entity claiming the exemption must furnish the dealer and the contractor with a certificate of entitlement to the exemption with each purchase order issued. No certificate – no exemption!
  • Possession by a dealer or contractor of a certificate of entitlement to the exemption from the governmental entity relieves the dealer from the responsibility of collecting tax on the sale and shifts all responsibility solely to the governmental entity for recovery of tax, penalty and interest that could later be determined to be due.
  • The governmental entity may not transfer liability for such tax, penalty, and interest to another party by contract or agreement.
  • DOR has promulgated rules to incorporate these changes and has developed the form of the certificate of entitlement which requires the governmental entity to affirm that it will comply with the requirements of the statute and the rules in order to qualify for the exemption.
  • These new provisions take effect on January 2, 2011, for all direct purchases made by a governmental entity (with the exception of the U. S. Government) on or after that date.

Follow these links for additional information:

FDOR Publication GT-8000067 issued 12/10 (Complete explanation and instructions for new procedures).

FDOR Tax Information Publication 10A01-18 (This less comprehensive document is referenced in Publication GT-8000067).

Certificate of Entitlement Form (This is a .pdf of the official form).

Rule 12A-1.094, Florida Administrative Code.

Section 212.08(6), Florida Statutes 2010.

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