Florida Sales Tax Update

Effective July 1, 2021, Florida will require collection and payment of sales taxes by remote online businesses that sell over $100,000 in goods delivered to the state.

Previously, Florida only taxed online businesses if the seller had a physical presence in Florida. Now Florida sales taxes include "Marketplace Providers" or marketplace sellers who make over $100,000 in remote sales of personal property delivered to the state in the previous calendar year.

It is estimated Florida will collect $1 billion from the tax annually, which is be used to replenish the state’s unemployment trust fund after which the revenue will be used to reduce the commercial lease tax.

Florida is the only state to impose a state sales tax on commercial rent of real property including land, buildings, office or retail space, convention centers or meeting rooms, docks, and parking. The new tax law will reduce the state sales tax on commercial leases from 5.5% to 2% after the unemployment trust fund is built back.

Online retailers are encouraged to review their current tax system to ensure compliance with the new Florida sales tax including registering with the Florida Department of Revenue. All tax, penalty, and interest due on remote sales before July 1, 2021 will be waived if retailers register before October 1, 2021.