Plenty of states have Back to School Sales tax holidays. There’s some controversy about these holidays. Detractors say that they don’t benefit businesses, because they just push shopping to the tax-free times instead of increasing shopping. They also benefit more affluent consumers who can come up with extra funds during tax-free times, rather than those who have to spread out their purchases. Florida is doing their Back to School tax holiday with enthusiasm, though They’re going for ten full days, July 31 through Aug. 9, with tax-free purchases of clothes and backpacks for less than $60, school supplies under $15, and electronic devices under $1,000.
There will also be a tax-free emergency supplies holiday from May 28 through June 6 so everyone can prepare for the hurricane season. Allowed items include flashlights selling for under $40, radios, tarps, gas containers, and batteries all with similar price caps.
The most unusual holiday is “Freedom Week,” July 1-7, when people can buy tickets for concerts, sporting events, museums, ballets, theaters, plays, musicals, fairs, festivals, and cultural events as well as gym memberships. The governor says this week is for Floridians to celebrate the fact that their state is free, unlike states with COVID-19 restrictions.
Online sales tax
As of July 1, Florida will require remote sellers to collect and remit sales tax, too. Florida is one of the last states to do this after the Supreme Court decided in 2018 that states can make remote sellers collect sales tax.
The move was controversial in Florida. Floridians, like most of the rest of us, were actually supposed to pay sales tax on their online purchases directly to the state. Estimates say that most people would have owed $40 to $50 a year, but the state collected only about 2% of that amount. Business leaders have been asking the government to make a sales tax law for online sellers since 2008, However, many Floridians perceive this as a new tax, or as raising taxes. “Just before midnight, DeSantis reveals he’s signed $1 billion tax on consumers,” said an Orlando Sentinel headline.
The article quoted a tweet from Rep. Anna Eskamani, “Governor just signed a bill into law to increase your taxes and give the new revenue of $1 billion to businesses.”
The law, maybe because of this perception, puts a focus on marketplace facilitators like eBay, Apple Store, and Amazon Marketplace. However, the threshold for Florida sales tax collection is $100,000 a year, about half what most states have set.
Do you sell goods in Florida?
At this point, it makes sense for most sellers to comply with sales tax requirements in all states that have sales tax. With Florida adopting online sales tax, Missouri is the only state still waiting. SalesTaxDataLINK sales tax software provides simple, accurate compliance solutions for all the states, however complicated and idiosyncratic their sales tax regulations may be.
SalesTaxDataLINK has the level of accuracy you need, at a predictable, affordable price. We can also take on the whole sales tax compliance process for you. Call 479-715-4275 to discuss your needs.