Florida – Affiliate Nexus Bill Pre-Filed

SALT Report 1262 – A bill has been pre-filed in the Florida House of Representatives that amends the definition and terms establishing affiliate nexus.  If enacted, the bill revises the definition of mail-order sales to include, “the sale of tangible personal property, ordered by mail, use of the Internet, or other means of communication.” The bill would also update and amend the definition of dealer and affiliate person.

Dealer –  Amended to include someone who makes a mail order sale and is required to collect sales and use tax when they sell a product similar to the affiliated person and does so under the same or a similar business name. Or, has an arrangement with a person to perform services in Florida for the dealer’s customers on behalf of the dealer and includes, but is not limited to:
  • Installation, assembly, maintenance, or repair services; and
  • Delivery arrangements with any person, other than a common carrier, to deliver property to customers in Florida, or
  • Allows the dealer’s customers to pick up property sold by the person at an office, distribution facility, warehouse, storage place, or similar place of business maintained by the dealer in Florida
Affiliate Person
  • Uses in-state employees or in-state facilities to advertise, promote, or facilitate sales by the dealer to customers
  • Maintains an office, distribution facility, warehouse, storage place, or similar place of business in Florida to facilitate the delivery of property or services sold by the dealer to the dealer’s customers
  • Uses trademarks, service marks, or trade names in Florida that are the same or substantially similar to those used by the dealer; or
  • Delivers, installs, assembles, or performs maintenance services for the dealer’s customers within Florida
The legislation also provides that a dealer would not be required to collect and remit sales or use tax under certain provisions unless the retailer has a physical presence in Florida or the activities conducted in Florida on the retailer’s behalf are significantly associated with the dealer’s ability to establish and maintain a market for sales in Florida.
If enacted these changes would take effect on July 1, 2012.
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