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Historic Deal on Internet Taxes

March 11th, 2021 by Mike Vasilinda

Florida is just one of two states that does not require out of state retailers to collect the sales tax on items sent to the state, but a compromise will end the isolation.

The measure is expected to bring in as much as $1.3 billion in its first year and the new cash will be used to offset higher unemployment taxes on businesses.

Florida’s unemployment trust fund was a healthy $4 billion at the beginning of last year.

Last week it sat at $652 million.

“Florida businesses are facing an extremely large automatic increase in unemployment taxes,” said Rep. Chuck Clemons.

Because of the drop, businesses are being hit with a $713 million tax hike, but an early session compromise has lawmakers moving to stop the increase by collecting the tax already owed, but seldom voluntarily paid, on internet purchases.

“Thus relieving the buyer of that personal responsibility. Thus eliminating the risk of penalties and interest for those who fail to remit the tax,” said Clemons, who is sponsoring the House bill.

An attempt to also raise unemployment benefits by a hundred dollars a week failed in the bill’s first committee stop Thursday.

Democrats also unsuccessfully sought to direct some of the new cash to the state’s affordable housing trust fund to help people hit hard by the pandemic.

Florida’s constitution requires a 2/3 vote by the Legislature for new taxes, but this tax is already on the books.

“This is a change in the process of collection,” said Grace Lovett with the Florida Retail Federation.

But workers advocates argue working people who shop online won’t see it that way.

“The diapers that she’s buying on Amazon, that are going to cost more. It’s very difficult to look them in the face and say its not a tax increase,” said Dr. Rich Templin with the Florida AFL-CIO.

Just two of the 18 members voted no.

One democrat, the other a Republican.

“It was a bi-partisan effort to level this playing field that has been un-level for many many years,” said Clemons.

Under the bill, the money will continue going into the unemployment trust fund until it reaches the four billion mark.

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