Florida Enacts Sales and Use Tax Economic Nexus

On April 19, 2021 Florida became one of the final states to pass legislation adding sales and use tax economic nexus for remote sellers.

The new law requires out-of-state vendors to begin collecting Florida sales tax on July 1, 2021 if their taxable remote sales in Florida exceeded $100,000 in 2020. With the passage of this law, Kansas and Missouri remain the only two states with a sales tax that have not added economic nexus provisions. The new law also includes requirements for marketplace providers to collect Florida sales tax. The same standard ($100,000 in the calendar year 2020) applies to marketplace providers.

The Florida Department of Revenue is providing tax, penalty, and interest relief to new registrants on remote sales made prior to July 1, 2021 if registration is completed by October 1, 2021. The relief offered by Florida is not available to taxpayers under audit or taxpayers that have received a notice from the Department. Businesses with substantial sales activity in Florida should consider registration and prepare their sales and tax systems to begin collecting Florida sales tax on July 1, 2021.

If you have any questions on Florida’s new sales and use tax law and how it may impact your business, contact your Schneider Downs tax advisor.