Florida (Finally) Enacts Wayfair Legislation

On April 19, 2021, Florida Senate Bill 50 was enacted into law. The legislation modernizes Florida’s sales and use tax system and imposes tax collection obligations on remote sellers and marketplace providers. Among the many reforms in the new legislation is the imposition of sales tax on “remote sales” and requiring tax collection by sellers lacking a physical presence in Florida. Remote sellers (seller with no physical presence in Florida) are required to collect Florida tax if they have in excess of $100,000 of retail sales for delivery into Florida in the previous calendar year. The new legislation also extends these sales tax collection obligations to marketplace providers that facilitate and collect payment for sales made by remote sellers utilizing their platform. In such instances, the marketplace provider, rather than the remote seller, would collect and remit Florida sales tax. These remote seller and marketplace provider obligations become effective July 1, 2021.

The new legislation also provides a “safe harbor” from potential past Florida tax liability. A remote seller required to collect and remit Florida tax under the new legislation will be relieved from liability for tax, penalty, and interest due on remote sales made before July 1, 2021, if they register with the Florida Department of Revenue before October 1, 2021. A similar safe harbor is provided for marketplace providers.

As a business and tax lawyer for more than 20 years, Mike advises clients on tax and business planning and structuring. He handles and helps clients negotiate a widerange of business and corporate transactions, including business sales and acquisitions, mergers, restructurings, joint ventures, pr ivate equit y and vent u re capital investments, corporate finance and credit facilities, taxexempt bond financings, business succession, corporate governance, and other significant business and commercial transactions. He also handles corporate governance and general commercial matters and serves as outside general counsel to businesses of varying sizes in many different industries. Mike is certified as a tax specialist by the Florida Bar and handles federal, state, and international tax planning matters.

For more information and updates, visit our website at WilliamsParker.com. Michael J. Wilson can be reached at (941) 536-2043 or [email protected].