Remote retailers are currently not required to collect and remit sales tax in Florida — a fact that costs the Sunshine State an estimated $425 million annually. There is a growing trend among states to go after that revenue, particularly from large online retailers such as Amazon.com. If some Florida lawmakers have their way this session, Florida will join states like Arizona, where Amazon now collects sales tax, and Connecticut, where it will begin sales tax collection in November.
The argument for Internet sales tax collection is strong, particularly given the fact that sales tax is responsible for approximately 70% of Florida’s general revenue. At the same time, “Governor Rick Scott (R) and some GOP lawmakers are leery of supporting anything resembling a tax hike.”
One solution may be a compromise in the form of a revenue-neutral Internet sales tax. Indeed, when remote sales tax was put forth in last year’s legislative session, Governor Scott “said he would not sign an Internet sales tax unless it was revenue-neutral.” This year’s bill meets that qualification: it includes tax breaks for machinery and equipment used in manufacturing, and “a $150 million cut in the communications services tax.”
Source: Tax Rates
