Florida’s online sales tax is now law, so what does this mean when you click ‘Buy?’
Now that Gov. Ron DeSantis signed into law a bill (SB 50) that requires out-of-state online retailers to collect sales taxes on purchases made by Floridians, the state is soon poised to collect an estimated $1 billion a year in revenue.
Supporters, such as many Florida brick and mortar businesses and the Florida Retail Federation, applauded the move that made it official on Monday, April 19. But what does that mean for you, the consumer, when you hit “buy” on your laptop or smart phone?
You have questions. We have answers.
WHEN DOES THIS ONLINE TAX GO INTO EFFECT?
July 1.
WHAT WILL THE SALES TAX BE?
6%.
HOW MUCH WILL THIS COST ME?
Depends on how much you buy online from out-ofstate retailers.
WAIT A SEC, I’VE PAYING TAX ON AMAZON PURCHASES. WHAT’S NEW?
Retailers that have a “physical presence” in Florida have been required to collect and remit sales taxes since 2018, when the U.S. Supreme Court ruled that state and local governments could collect sales taxes from online purchases, regardless where the seller was located, Forbes reported.
That’s why you paid a 6% sales tax on recent “Exclusive Edition” Taylor Swift albums ordered from Target or Amazon — which has distribution centers based in Florida — but probably didn’t pay a tax on the autographed poster of the pop star sold by a seller in Saskatchewan you ordered via Amazon’s third-party marketplace. (Technically, Floridians were supposed to send in sales taxes on such online purchases on their own, notes Tax Foundation, a non-profit tax policy advocacy group. But did you really? We won’t tell.)
WHAT PLATFORMS WILL CHARGE A SALES TAX?
Some you are likely already using like Apple’s
App Store, Google Play store and Microsoft Store for downloads.
Also, eBay, Etsy and Overstock, among others. Again, Amazon Marketplace, too, because that’s the component of Amazon that independent sellers use. (Remember, Amazon collected the tax on its own sales but not on the thirdparty marketplace.)
The platforms are responsible for sending sales tax revenue to Florida, not individual sellers like Harry, the seller from the UK with that rare Royal Family Collectors’ Plate you ordered after binge watching “The Crown” on Netflix.
ANY SALES EXEMPT?
Yep. Businesses that sell less than $100,000 worth of goods are exempt from SB 50. Individual sellers using a platform that hits that threshold still have to collect and pay the sales tax.
WHERE IS THAT REVENUE GOING?
The new law’s estimated annual $1 billion is earmarked for the unemployment trust fund, which became depleted because of massive job losses during the COVID-19 pandemic, the News Service of Florida reported. After the fund is replenished, the revenue will be used to make a cut in the commercial-rent tax from 5.5% to 2%.