Business InsightsNewsTaxes
On April 19, 2021, Florida Governor Ron DeSantis signed S.B. 50 into law, officially making Florida one of the last states to adopt economic nexus and marketplace facilitator rules following the U.S. Supreme Court’s South Dakota v. Wayfair decision.
Under Wayfair, states can require remote sellers to collect and remit sales tax if their sales exceed a specific economic threshold—regardless of physical presence. Florida’s law aligns with this standard by setting a $100,000 sales threshold, but does not include a transaction count threshold like some other states.
Effective Date: July 1, 2021
Relief Deadline: October 1, 2021 (for remote sellers to register and receive relief from prior liability)
Economic Nexus Threshold
Beginning July 1, 2021, remote sellers and marketplace facilitators with over $100,000 in taxable Florida sales in the prior calendar year are considered dealers, and must:
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Register with the Florida Department of Revenue
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Collect and remit Florida sales tax
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File returns for applicable periods
Definition of Remote Sales:
Retail sales of tangible personal property ordered from outside Florida (via internet, phone, or mail) and delivered into the state.
Note: Marketplace sellers only count direct (non-marketplace) sales when calculating the $100,000 threshold.
Marketplace Facilitator Provisions
A marketplace provider is required to collect and remit tax on behalf of marketplace sellers for sales made through the platform. The law excludes certain service providers, including:
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Travel agencies
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Specific delivery network companies
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Payment processors whose only function is processing payments
Key Rules:
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Marketplace sellers do not collect sales tax on transactions when the provider certifies it will.
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Marketplace sellers must register and collect tax on direct (non-marketplace) sales.
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Starting April 1, 2022, large sellers ($1B+ U.S. sales) may contract with platforms to collect tax directly, if they’re registered.
Additional Fees (effective April 1, 2022):
Marketplace providers must also collect fees such as:
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Prepaid Wireless E911 Fee
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Waste Tire Fee
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Lead-Acid Battery Fee
Audit and Liability Provisions
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The Department of Revenue (DOR) audits marketplace providers, not sellers.
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Providers can be relieved of liability if failures were due to incorrect seller data (not applicable for related parties).
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The DOR cannot double-assess sales tax to both the provider and seller for the same transaction.
Relief for Prior Sales
Florida offers relief for tax, penalty, and interest on remote sales made before July 1, 2021 if:
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The business registers by October 1, 2021
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The seller was not under audit or formal collection action as of July 1, 2021
This relief also applies to:
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Marketplace sellers for pre-July 1 sales through facilitators
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Marketplace providers with physical presence, but only for sales made on behalf of others
Important: Data obtained during registration cannot be used to identify prior use tax liabilities for otherwise non-filing purchasers.
County Surtax
Remote sellers and marketplace providers must collect county surtax based on the delivery location of taxable items.
Insights
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The law aims to replenish Florida’s unemployment compensation trust fund and, once restored, reduce the business rental tax rate from 5.5% to 2%.
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The Florida Department of Revenue is authorized to adopt emergency rules to implement the law.
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Businesses should evaluate prior nexus exposure before registering and consider whether a Voluntary Disclosure Agreement (VDA) is appropriate.