The Covid-19 pandemic has blown a huge hole in the state budget as state sales tax revenues are down due to the drop in tourism and stay-at-home orders that have kept people from shopping.
One proposal to fill the revenue gap is to collect sales taxes on all Internet sales. The proposal renews what has been a long-running debate on Internet sales taxes. Currently, companies with a physical presence in the state, such as a retail location or distribution warehouse, must collect tax on their sales.
However, many businesses which sell online to Floridians but do not have a physical presence in the state do not collect sales tax. This has long been a point of contention, with Florida retailers complaining that companies who do not collect sales taxes have an unfair advantage over those who collect them.
A study earlier this year said that legislation to require sales tax on all internet sales would generate $479 million a year for the state and $132.9 million a year for local governments.
The proposal to require all companies selling items at retail to Florida customers to collect sales tax is not a proposal for a new tax. It would require that instead of just some companies collecting the tax, all companies would collect it.
For more information: Citrus County ChronicleCitrus county chronicle
june 08, 2020