Florida Gov. Ron DeSantis signs online sales tax bill into law

On April 19, Governor Ron DeSantis signed into law a plan to require out-of-state online retailers to collect sales taxes on purchases made by Floridians, with the estimated $1 billion a year in revenue going to lessen the tax burden on Florida businesses.

ICSC has been a champion for eliminating Florida’s Business Rent Tax and adopting e-fairness for decades and wrote Gov. DeSantis in support of the legislation.

The measure, SB 50, was passed by the Florida Senate and House of Representatives earlier this month by a supermajority in both chambers. The legislation addressed two of ICSC’s top state priorities: in addition to providing a framework for collection of online sales taxes, the new remote sales tax revenue initially replenishes the unemployment compensation trust fund and will later be used to pay for a 64% reduction of Florida’s Business Rent Tax. [5.5% to 2%, effective 2025, or upon replenishment of the unemployment compensation trust fund.] 

“The significant reduction in the BRT rate is another great step in further enhancing Florida’s business competitiveness and health of retailers throughout the state,” Jim Hill, ICSC Vice President for State & Local Government Relations, said. “The legislature and Governor should be commended.”

Florida was one of the last states with a state sales tax to pass e-fairness legislation. In the wake of the 2018 U.S. Supreme Court South Dakota v. Wayfair case, most states were quick to utilize their new authority to collect online sales taxes, leveling the playing field for community-based brick-and-mortar retailers. Missouri is now the only sales tax state that has not adopted legislation to collect remote sales taxes from out-of-state-sellers.