Florida Enacts Economic Nexus Legislation

Last Updated on August 18, 2022

On April 19, 2021, Florida Governor Ron DeSantis signed into law economic nexus legislation for remote sellers to register for sales tax by meeting the state-specific thresholds. With the date of implementation on July 1, 2021, remote sellers should review their sales into Florida to see if they qualify. Aggressive states are beginning to send out audit notices to remote sellers who have failed to register, given the Wayfair decision from June 2018. So this is the time to stay proactive and register moving forward in the Sunshine State! Below are the notables related to the Florida law:

  • Economic Nexus Threshold: $100,000 of sales during the previous calendar year (2020 is initial threshold year).
  • Marketplace Provider Sales do not count towards the threshold.
  • No minimum number of transactions; threshold is by sales figure only.

With Florida’s economic nexus thresholds in place, that leaves the state of Missouri as the only hold out, save for the states that do not have sales tax or NOMAD (New Hampshire, Oregon, Montana, Alaska and Delaware).

The rules for what constitutes economic nexus are no longer as simple as gross sales and number of transactions, and remote sellers have to wary of rules differentiating direct sales vs. marketplace sales and marketplace facilitation. With the federal filing date for income tax moved to May 17th, remote sellers may want to examine their current sales for economic nexus to ensure compliance.

Celebrating our 22nd year in Sales & Use Tax Consultancy, TaxMatrix performs Economic Nexus Studies, Economic Nexus Exposure Analysis, Voluntary Disclosure Agreements, State Registrations, Custom Tax Matrices and other services for remote sellers nationwide. If you need assistance, please contact us today!  

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