Florida DOR Determines Non-Cash Adjustment Passed to Customers Paying by Credit Cards Was Sales Taxable

The Florida Department of Revenue (DOR) March 24 determined in a letter ruling that a non-cash adjustment was sales and use taxable. A credit card processing company charged Taxpayer, a restaurant, 3.5 percent of each credit card sale, which Taxpayer passed on to its customers as a “non-cash adjustment.” Items on Taxpayer’s menu were listed with the price if one paid cash. If customers paid with credit cards, the non-cash adjustment was added to their bills. The DOR noted: 1) sellers’ expenses are part of taxable sales prices when passed along as a cost to purchasers; 2) the taxable sales ...