Florida enacts sales tax economic nexus law effective July 1, 2021

As many taxpayers now know, the landmark U.S. Supreme Court decision in South Dakota v Wayfair, Inc., 138 S. Ct 2080 (2018) dramatically changed the sales tax landscape. Since Wayfair, approximately 40 states of the 45 that impose sales and use tax have enacted and begun enforcing economic nexus statutes. Florida had been one of the last holdouts in requiring remote sellers to collect sales tax.

As a result of a new law, Chapter 2021-2, Laws of Florida, businesses making remote sales into Florida must register and collect sales and use tax on such transactions, including any applicable discretionary sales surtax, if the business has made taxable remote sales in excess of $100,000 over the previous calendar year. The law goes into effect July 1, 2021. Affected businesses not previously registered with the Florida Department of Revenue have until September 30, 2021, to complete a Florida Business Tax Application and avoid a “look back” review of previous remote sales and use taxes due.

Mazars’ Insight

Sales tax nexus has become a very fluid topic of late, with states regularly coming out with new and/or updated guidance.  It is important for business to understand their state sales tax footprint in order to be properly prepared for sales tax collection and filing obligations, as the states have been aggressively enforcing the new statutes.

Please contact your Mazars professional for additional information.

Published on May 26, 2021