Florida – Click-Through Nexus Law Filed

SALT Report 1321 – A bill has been filed in the Florida Senate that includes sales and use tax click-through nexus and notification requirements. If enacted, the term “mail order sale” would be amended to include sales of tangible personal property ordered by mail, through the Internet, or by other means of communication.  The term “agent” would be defined as a resident of Florida who enters into a contract with a dealer and refers potential customers to the dealer, either by a link on an Internet website or other means.

A “dealer” would now be presumed to be someone soliciting business from Florida residents and has an agreement with an agent who refers customers to the dealer by a link on an Internet website or otherwise. However, the dealer may rebut the presumption by proving that the agent with whom they have an agreement did not solicit sales in Florida during the preceding four quarterly periods.
The conditions that would require a dealer to charge and collect sales and use tax would now include situations where:
  • The dealer has a contract with a person located in Florida and the dealer sells the same or similar line of products as the person
  • The dealer uses an identical or similar name, trade name, or trademark as the person and provides a commission or other consideration to the person based upon sales by the dealer
  • The dealer has cumulative gross receipts from sales to customers in Florida totaling more than $10,000 during the preceding four quarterly periods.
Purchaser Notification
The legislation also includes a provision that requires a dealer who makes mail order sales but is not required to collect sales and use taxes to notify purchasers that use tax must be paid by the purchaser on nonexempt sales of tangible personal property. The notice is required to state the following:
  • The dealer is not required to collect and does not collect Florida sales and use tax
  • The purchase is subject to state use tax unless it is specifically exempt
  • The purchase is not exempt merely because the purchase is made over the Internet, by catalog, or by other remote means
  • Florida requires each resident to report any purchase that was not taxed and to pay tax on the purchase, and
  • Where the use tax form and instructions can be found on the Florida Department of Revenue website
If enacted, the bill would be effective July 1, 2013.
For Further Information:

Florida Senate – S.B. 1352 Mail Order Sales


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