Senate Takes Steps to Modernize Online Sales Taxes
The Senate Commerce and Tourism Committee today took the first step in leveling the playing field between brick and mortar businesses and online retailers by passing SB 1112. Under this bill, online businesses that conduct 200 or more transactions or sales of over $100,000 in Florida will be required to register with the Florida Department of Revenue (DOR) and collect and remit sales tax. Alternatively, the bill allows for marketplace providers, like Ebay or Amazon, to collect and remit the sales tax. With the increased revenue and in order to be revenue neutral, the bill proposes reducing the Florida-only Business Rent Tax by 1.5 percent and includes a sales tax holiday for hurricane supplies.
In June 2018, the U.S. Supreme Court issued an opinion in South Dakota v. Wayfair which paved the way for states to begin collecting the sales tax on internet purchases if a company has a significant economic presence in the state. Over 40 states have adopted rules or passed legislation to implement the Wayfair decision and set minimum requirements to establish an economic presence. In Florida, this is a tax that has always been due, but the burden has been on the taxpayer to submit the tax to the DOR for online purchases.
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