Effective July 1, 2026, Florida created a new exemption under § 212.08(6)(e), F.S. for tangible personal property purchased by contractors working within State universities, Florida College System institutions, public facilities including those owned or financed by government for public use or enjoyment. This is a deviation from how “public works” contracts were traditionally structured in a number of ways. Most notably, unlike traditional exemptions from Florida sales and use tax, the contractor in this scenario does not present an exemption certificate or receive an exemption at the point of purchase.
Instead, the contractor pays sales tax and the university or college files a refund claim with the Florida Department of Revenue refunds the previously paid tax to the university/college. There is a form specific to these refund claims, the DR-26PW.
Who is eligible?
State universities, Florida College System institutions, public facilities including those owned or financed by government for public use or enjoyment.
What purchases qualify?
The statute applies to tangible personal property sold to contractors employed directly by, or acting as agents of, a qualifying university or college. The property must: 1) be purchased by the contractor; 2) be tangible personal property; 3) go into or become part of the public works; and 4) ultimately be incorporated into public works owned by the qualifying institution. The statute says the exemption applies when the tangible personal property "goes into or becomes part of" the public works.
This is where contractor accounting becomes important.It is critical that property is correctly identified prior to filing. Tangible personal property, that becomes part of the real property job, should be clearly identified. Some examples of items that potentially qualify:
- structural materials;
- electrical equipment/materials;
- plumbing materials;
- doors/windows;
- flooring;
- building components;
Do not assume that every contractor purchase associated with the project qualifies. For example, there is a significant conceptual difference between “This equipment became part of the building" versus “The contractor used this equipment to build the building."
The first is much more clearly within the statutory language.
The contractor still pays the sales tax
This is probably the biggest practical distinction between how the transaction flow and the Florida sales tax refund process traditionally work. The statute does not establish a normal resale/exemption-certificate transaction at the time the contractor purchases the materials. Instead, the exemption inures to the university or college through a refund of previously paid tax. So, for example:
$5 million construction-material scenario
A university hires a general contractor.
The contractor purchases:
$5,000,000 of qualifying materials
and pays:
$300,000 of Florida sales tax
assuming a 6% state rate for illustration.
The contractor incorporates those materials into the university's public works project.
The university can then seek a refund of the qualifying $300,000 of tax.
That is fundamentally different from a transaction in which the contractor gives the vendor an exemption certificate and never pays the $300,000 in the first place.
If are a State university, Florida College System institution, or public facility, with ongoing or prospective contracts for real property improvements, reach out today for a free consultation!
Ribeiro Law focuses exclusively on state and local tax matters. We advise on exemption planning, Department of Revenue applications, refund claims, and sales tax audits, helping businesses maximize available exemptions while minimizing audit risk.
