Florida TaxWatch Encourages Legislature To Address The Inequities Facing Florida-Based Businesses And Taxpayers
TALLAHASSEE, Fla. – Florida TaxWatch today released a new ‘Session Spotlight’ briefing encouraging the Florida Legislature to address inequities facing Florida-based business and taxpayers. The briefing by Florida’s premier independent government watchdog of 40 years urges the Legislature to take advantage of the opportunity to resolve the problem of uncollected sales taxes on remote sales, provided by the U.S. Supreme Court decision made last year in their Wayfair decision. In addition to the Session Spotlight briefing, Florida TaxWatch has also released a report, authored by Bob Goldman of Dean, Mead, and Dunbar, that goes further in-depth on the issue.
For more than 15 years, Florida TaxWatch has researched the collection of taxes on remote sales. The non-collection of sales taxes on remotely (out-of-state) conducted sales has been one of the most significant tax compliance and collection issue facing Florida and other states.
“Not collecting sales tax on remote sales not only costs the state millions in revenue, but it also puts local retailers at a complete disadvantage,” said Florida TaxWatch President and CEO Dominic M. Calabro. “Not to mention, without this change, a costly and harsh burden will be put on retirees, families, and individuals. Florida TaxWatch strongly encourages the Legislature to seize this opportunity.”
Senate Bill 1112, sponsored by Sen. Joe Gruters (R-Sarasota), is currently the only remote sales legislation moving this legislative session. Sen. Gruters’ bill could bring equity to the state’s sales and use tax and provide an economic benefit by providing a boost to the retail sector. Not only would it be fairer to retailers but collecting taxes on online sales also improves equity for consumers and taxpayers.
Due to the lack of online sales tax, Florida retailers must overcome a 6 percent to 8.5 percent price increase compared to their online counterparts, further placing Florida ‘bricks-and-mortar’ and ‘clicks-and-bricks’ retailers at a significant competitive disadvantage.
“It’s important to understand that this is not a tax increase,” said Sen. Gruters. “This is currently a legally owed tax that some pay while many do not. It is time for Florida to modernize the tax system in order to keep Florida businesses competitive.”
If passed, the proposed legislation would use the additional revenue collected to reduce the onerous Business Rent Tax (BRT) from 5.7 percent to 4.2 percent, an approach strongly supported by the Florida Retail Federation.
“The Florida Retail Federation and Florida TaxWatch have been long-time supporters of a reduction in the business rent tax,” said Florida Retail Federation President and CEO Scott Shalley. “We hope that the Legislature will strongly consider this opportunity to boost the state’s economy and Florida-based businesses.”
Read the Session Spotlight and full explanation of the Wayfair decision here.
About Florida TaxWatch
As an independent, nonpartisan, nonprofit government watchdog and taxpayer research institute for 40 years, the trusted eyes and ears of Florida taxpayers, Florida TaxWatch, works to improve the productivity and accountability of Florida government. Its research recommends productivity enhancements and explains the statewide impact of fiscal and economic policies and practices on citizens and businesses.
Florida TaxWatch is supported by voluntary, tax-deductible donations and private grants, and does not accept government funding. Donations provide a solid, lasting foundation that has enabled Florida TaxWatch to bring about a more effective, responsive government that is more accountable to, and productive for, the citizens it serves since 1979. For more information, please visit http://www.floridataxwatch.org.