SignatureSolarJess
Customer Experience Excellence Ambassador
- Joined
- Nov 21, 2022
- Messages
- 566
Okay! I found out that we have implemented a new system that ensures precise taxation with a 100% accuracy rate for every zip code.
Signature Solar Taxes in the New Year
- Thread starter Ralphael50
- Start date
And is there a reason why it charges sales tax on exempt solar products?
Tulex
Solar Wizard
I think the new system needs a firmware update.
Dan_Austin
New Member
Similar situation in AZ.
Solar products are not sales tax exempt, they (most of them) are just able to receive the 30% federal income tax credit.
Edit: The sales tax on PV is also able to be included on the federal income tax credit.
P.S. I am not a tax expert, don't take my advice when preparing your tax return.
They supposed to be.
but
so perhaps their new system plays it safe and strictly adheres to the rules now.
Depends on the state. In MN solar equipment is exempt from sales tax.
SkyBlue
New Member
Looks like a 16 states and Washington DC exempt PV system components from sales tax.
Are Solar Panels Exempt From Property Taxes and Sales Taxes in Your State?
Many states provide tax incentives designed to lessen your overall cost of installing solar panels.
www.cnet.com
Last edited:
green mountain boys
Solar Enthusiast
As a retailer myself, your claim of 100% accurate sales tax definitely caught my attention. I have struggled with sales tax for decades with my business. I have sales in all 50 states so I feel your pain.
I just put an item in my cart from Signature Solar and found that I was charged 7% sales tax which would be correct except for the statewide sales tax exemption on solar items. You can find it here.
https://tax.vermont.gov/sites/tax/files/documents/FS-1182.pdf
I know sales tax is a huge mess. I do not believe it is possible to get it right all the time. You just have to do the best you can.
It is a mess trying to figure out.
I assume the different states must have some kind of way to deal with interstate sales.
Maybe they know what is going on, but I would not bet on it.
And then you hope the powers that be have their act together.
What I hate is not being able to get a straight answer from the ones in charge of the system they govern.
Wrong city. Should be Ampere.
Corrected.
green mountain boys
Solar Enthusiast
You would think so but... Take a look at destination based sales tax vs origin based sales tax. More than half the states have moved to destination based sales tax but California and some others have not. Don't forget all of the county and city taxes too.
Yep, and TX is high.
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How To Charge Sales Tax for Out-of-State Customers
Your obligation to charge out-of-state sales tax to your customers depends largely on whether you operate your business in an origin-based or a destination-based state.
It is such a headache trying to navigate the maze of different requirements.
I think they like it that way.
They can explain it three different ways, and all of them are in THEIR favor.
No income tax, so stick it to 'em where you can.Yep, and TX is high.
How To Charge Sales Tax for Out-of-State Customers
Your obligation to charge out-of-state sales tax to your customers depends largely on whether you operate your business in an origin-based or a destination-based state.www.thebalancemoney.com
Ralphael50
New Member
- Joined
- Jul 12, 2020
- Messages
- 6
I went to the Signature Solar web site this evening and they're no longer adding taxes for Florida customers. What is strange is that when I went to a competitor's site last week, the competitor was not adding taxes but this evening they are now adding taxes. So if you're thinking about purchasing anything from Signature Solar, now is the time to pull the trigger before they go back to adding taxes.
Atomicpunk
New Member
- Joined
- Mar 29, 2022
- Messages
- 17
Just my experience, when I bought my first set of Renogy panels at Home Depot in 2022 (in FL), they were taxed, It was a lot of red tape back and forth with the Tax exempt department of Home Depot to show them the Florida Law. They eventually reimbursed the sales tax. The last set of panels I bought at Home Depot in 2023 were automatically sales tax free (even using an online purchase). As for other businesses, you just need to send them the letter (attached earlier in this thread), and usually they will reimburse the sales taxes. I have done this with Bluetti and Amazon. This (FL) sales tax exempt includes even MC4 wires, connectors, ground rods, and even the construction of the mounting system.
Reviving this old thread since I hit this roadblock recently.
Florida law:
212.08(7)(hh):
"Solar energy systems.—Also exempt are solar energy systems or any component thereof. The Florida Solar Energy Center shall from time to time certify to the department a list of equipment and requisite hardware considered to be a solar energy system or a component thereof."
212.02(26):
"Solar energy system” means the equipment and requisite hardware that provide and are used for collecting, transferring, converting, storing, or using incident solar energy for water heating, space heating, cooling, or other applications that would otherwise require the use of a conventional source of energy such as petroleum products, natural gas, manufactured gas, or electricity."
There appears to be an "authority escalation" here in that FSEC seems to think that if they don't list it, it doesn't qualify for the sales tax exemption. Further, they even say this:
energyresearch.ucf.edu
"Florida law (section 377.705, FS) require that all solar systems manufactured or sold in the state of Florida comply with Solar Equipment Standards promulgated by the Florida Solar Energy Center® (FSEC®)."
Well, let's look at that law, please.
377.705(4)(d):
"All solar energy systems manufactured or sold in the state must meet the standards established by the center and shall display accepted results of approved performance tests in a manner prescribed by the center, unless otherwise certified by an engineer licensed pursuant to chapter 471 using the standards contained in the most recent version of the Florida Building Code."
Did you catch the "unless" part? That basically says if the solar system meets the building code and a licensed engineer signs off on it, then it does NOT have to be certified by FSEC to be made or sold in Florida. A solar system meeting code is already the basic law we have (example UL1741 for grid tied inverters, UL 61730 for panels, etc).
So FSEC is on a power trip. They think they control what can be sold in Florida, but they don't.
As to the sales tax exemption, the law says solar equipment is exempt, period. The duty for FSEC is ONLY to provide a list to the DOR, but not being on that list doesn't cancel the tax exemption, and that list is not controlling to the purchasers.
Indeed, the form you fill out for the exemption is here:
And nowhere on that form does it say the equipment you are buying has to be on the FSEC list. A list is provided for "reference" but it is generic and does not list specific brands or models, unlike the FSEC listings.
Here is how this SHOULD work. The BUYER fills out the form TIP_19A01 above and sends it to the VENDOR. The VENDOR sells the solar equipment that generically meets the list in the form (solar panels, inverters, etc) and does so without charging sales tax. If the VENDOR gets audited, the form from the buyer provide the evidence backing up the exemption.
If this is NOT how it is working, then vendors are complicit in over charging us for solar equipment in Florida. It is, in fact, against the law to charge sales tax when a sale should be exempt.
PS: I tried to enter my proposed solar system into the FSEC approval website. What a terrible experience. Only my solar panels were on the FSEC list, so everything not on the list required a separate request to add them to the list. There was no timeline stated for how long that would take.
FSEC needs to back off and stop asserting authority they don't have.
Mike C.
Florida law:
212.08(7)(hh):
"Solar energy systems.—Also exempt are solar energy systems or any component thereof. The Florida Solar Energy Center shall from time to time certify to the department a list of equipment and requisite hardware considered to be a solar energy system or a component thereof."
212.02(26):
"Solar energy system” means the equipment and requisite hardware that provide and are used for collecting, transferring, converting, storing, or using incident solar energy for water heating, space heating, cooling, or other applications that would otherwise require the use of a conventional source of energy such as petroleum products, natural gas, manufactured gas, or electricity."
There appears to be an "authority escalation" here in that FSEC seems to think that if they don't list it, it doesn't qualify for the sales tax exemption. Further, they even say this:
Solar Certification - FSEC®
Protecting the Florida consumers, all solar systems manufactured or sold in the state of Florida must comply with FSEC Solar Equipment Standards.
energyresearch.ucf.edu
"Florida law (section 377.705, FS) require that all solar systems manufactured or sold in the state of Florida comply with Solar Equipment Standards promulgated by the Florida Solar Energy Center® (FSEC®)."
Well, let's look at that law, please.
377.705(4)(d):
"All solar energy systems manufactured or sold in the state must meet the standards established by the center and shall display accepted results of approved performance tests in a manner prescribed by the center, unless otherwise certified by an engineer licensed pursuant to chapter 471 using the standards contained in the most recent version of the Florida Building Code."
Did you catch the "unless" part? That basically says if the solar system meets the building code and a licensed engineer signs off on it, then it does NOT have to be certified by FSEC to be made or sold in Florida. A solar system meeting code is already the basic law we have (example UL1741 for grid tied inverters, UL 61730 for panels, etc).
So FSEC is on a power trip. They think they control what can be sold in Florida, but they don't.
As to the sales tax exemption, the law says solar equipment is exempt, period. The duty for FSEC is ONLY to provide a list to the DOR, but not being on that list doesn't cancel the tax exemption, and that list is not controlling to the purchasers.
Indeed, the form you fill out for the exemption is here:
And nowhere on that form does it say the equipment you are buying has to be on the FSEC list. A list is provided for "reference" but it is generic and does not list specific brands or models, unlike the FSEC listings.
Here is how this SHOULD work. The BUYER fills out the form TIP_19A01 above and sends it to the VENDOR. The VENDOR sells the solar equipment that generically meets the list in the form (solar panels, inverters, etc) and does so without charging sales tax. If the VENDOR gets audited, the form from the buyer provide the evidence backing up the exemption.
If this is NOT how it is working, then vendors are complicit in over charging us for solar equipment in Florida. It is, in fact, against the law to charge sales tax when a sale should be exempt.
PS: I tried to enter my proposed solar system into the FSEC approval website. What a terrible experience. Only my solar panels were on the FSEC list, so everything not on the list required a separate request to add them to the list. There was no timeline stated for how long that would take.
FSEC needs to back off and stop asserting authority they don't have.
Mike C.
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