TALLAHASSEE, Fla. – Sales over the internet have increased from 30 to 50 percent during the pandemic, yet Florida remains one of two states with a sales tax that does not place the tax burden on out-of-state retailers.
But where the tax is collected could soon be changing.
If you have purchased something over the internet or from a catalog, and the seller didn’t collect the sales tax, you as a consumer are supposed to fill out this form and send what you owe to the state.
Only Florida and Missouri don’t force out-of-state retailers to collect at the point of sale, but lawmakers on Monday took the first step to shift the burden to internet merchants.
“This is the right time,” State Sen. Joe Gruters said. “During the pandemic we’ve seen people’s buying patterns shift. And certainly, Florida is on the losing end, because not enough people are paying the tax that’s owed.”
The constant parade of packages arriving at doors is only expected to increase in volume, even post-pandemic.
Collecting the already owed tax at the point of sale is one of dozens of recommendations that Florida TaxWatch believes will get the state’s finances back on track.
“We have the second highest reliance on sales and use tax. We should have been at this a long time ago. It’s been ideological head in sand,” Florida TaxWatch President and CEO Dominic Calabro said.
There’s always been opposition. It used to come from lawmakers worried about being labeled with voting for a tax increase. But now, the AFL-CIO says corporations and others should pay more before working people.
“We have working people who should be paying the tax, but why do they go first? Why are they the ones whose pocket books are going to get hit first?” Dr. Rich Templin with the Florida AFL-CIO said.
And consumers who haven’t paid the tax could be liable for what they over for up to three years.
Changing the point of the taxes collection is expected to raise up to $1 billion a year that has been going uncollected.