After July first a big change is coming to online ordering in Florida. Up until now, Floridians were required by law to voluntarily submit the tax if it was not collected by the merchant, but a new law will require out-of-state retailers to collect the tax.
Collecting the sales tax from online purchases has been haphazard at best in Florida. Companies with a physical presence collected it, while others have not.
“There are people who have exploited the law,” said Scott Shalley, President of the Florida Retail Federation.
It’s been a thorn in the side of Florida retailers.
“They are buying large purchases of electronics, large purchases of furniture and those sorts of things. And those folks should notice. It’s a tax that was due and it’s a tax that needs to be paid,” said Shalley.
Retailers have been trying to get the tax fully collected for over a decade. Beginning Thursday, the quest will be over.
“Local retailers are feeling a little relief, knowing they can compete on a level playing field,” said Shalley.
Once signed into law, criticism from gubernatorial-hopeful and current Florida Commissioner of Agriculture Nikki Fried was swift.
“This Governor and his legislature raised your taxes by over a billion dollars,” said Fried.
However, the tax was already owed under state law. Consumers were supposed to fill out a form and send in what they owe every three months, but few did.
The AFL-CIO supported the collection until lawmakers decided to use the money to offset what could have been huge increases in unemployment taxes for businesses.
“Working families are going to be paying more in taxes and they get absolutely nothing for it. It doesn’t help their schools. It doesn’t provide health care,” said Rich Templin with the Florida AFL-CIO.
Lawmakers have justified the offset, arguing without it there would be fewer jobs. The legislation also grants amnesty to the millions of Floridians who never filled out the form and paid the tax in the first place. Florida has been one of only two states with a sales tax that has been leaving the money, to the tune of a billion dollars a year, uncollected. Missouri remains the other.
