Senators to Hear Internet Sales Tax/E-Fairness Bill Tomorrow
| On April 16, legislators on the Senate Finance and Tax Committee will hear SB 1112, a Florida Chamber- backed bill aimed at leveling the playing field between brick and mortar businesses and online businesses. Historically, brick and mortar businesses have been at a six percent disadvantage in Florida compared to their online counterparts because they are required to collect sales taxes. But, in June 2018, the South Dakota v. Wayfair decision 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. 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 Florida Department of Revenue (FDOR) for online purchases. 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 FDOR 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 underlying bill also proposes reducing the business rent tax and includes a sales tax holiday for hurricane supplies. The business rent tax has been a legislative priority for the House, Senate and business community for the last several years and is currently set at 5.7 percent. |
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