Effective July 1, 2021, Florida S.B. 50 (2021) will require marketplace providers and out-of-state retailers with no physical presence in Florida to collect sales tax on taxable sales delivered to purchasers in Florida if the marketplace provider or out-of-state retailer makes greater than $100,000 in taxable remote sales in a calendar year. This threshold is also referred to as a “substantial number of remote sales.”1
Businesses that have a substantial number of remote sales have until September 30, 2021 to complete a Florida Business Tax Application to avoid a “look back” review of previous remote sales and use taxes due.2
Other Sales Tax Provisions of S.B. 50
In addition to the creation of remote seller and marketplace provider requirements, other tax provisions in S.B. 50 include:
- Reducing the sales tax rate for commercial rentals from 5.5% to 2%, plus any applicable discretionary sales surtax, two months after the Unemployment Compensation Trust Fund reaches $4.07 billion.
- Replacing the sales tax bracket method with an algorithm method. Please refer to Ryan’s tax development Florida Says Goodbye to Sales Tax Brackets.3
For more information on Florida’s economic nexus provisions or other aspects of S.B. 50, please contact a Ryan National Tax professional to assist you. For information on all things Wayfair, please refer to Ryan’s Wayfair page.
1 Florida S.B. 50 (2021).
2 New Law Requires Collection of Sales and Use Tax on Remote Sales, Florida Department of Revenue Current Topics located at https://floridarevenue.com/pages/default.aspx.
3 Florida S.B. 50 (2021).
TECHNICAL INFORMATION CONTACTS:
Susan Bittick
Principal
Ryan
512.476.0022
susan.bittick@ryan.com
Clara Kippes
Principal
Ryan
954.740.6240
clara.kippes@ryan.com
Julie Moore
Director
Ryan
904.680.5660
julie.moore@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.