Long-awaited e-fairness legislation passes in Sunshine State

On April 8 the Florida Senate and House of Representatives passed SB 50, a measure that would require out-of-state online retailers to collect and remit sales taxes, by a vote of 27-12 and 93-24 respectively, a supermajority in both chambers. The legislation addresses 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 replenishes the reemployment compensation trust fund and will later be used to pay for a 3.5% reduction of Florida’s Business Rent Tax. [5.5% to 2%, effective 2025, or upon replenishment of the unemployment compensation trust fund.] 

The measure has been sent to Governor Ron DeSantis for his signature. He may sign, veto or allow the bill to become law without his signature. The supermajority vote count in Tallahassee is significant as it signals that, if vetoed, the legislature has the votes needed to override. ICSC has written to Gov. DeSantis in support of the bill.

Florida is 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 retailers. With this development, Missouri is the only sales tax state that has not adopted a policy to collect remote sales taxes from out-of-state-sellers.

“This legislation is a significant victory for Florida’s brick and mortar retailers as it will level the playing field by requiring online sellers to collect and remit sales taxes," Jennifer Platt, ICSC’s vice president of federal operations, said. "The revenue proceeds will pause increased unemployment tax collections and ultimately be used to cut Business Rent Taxes by more than half. This is a major victory to modernize retail and secure state and local revenues.”