SB 50 — Taxation

For the purposes of determining whether a marketplace seller made a substantial number of remote sales, the marketplace seller shall consider only those sales made outside of athe marketplace.

The department may examine, audit, and assess a marketplace seller for retail sales made outside of athe marketplace under paragraph (4)(b).

This paragraph does not provide relief to a marketplace seller who is under audit;

has been issued a bill, notice, or demand for payment;

or is under an administrative or judicial proceeding before July 1, 2021.

Section 6. Effective5. Effective April 1, 2022, subsections (10) and (11) are added to section 212.05965, Florida Statutes, as created by this act, to read:

Section 7. Paragraph6. Paragraph (c) of subsection (2) and paragraph (a) of subsection (5) of section 212.06, Florida Statutes, are amended to read:

Section 8. Paragraph7. Paragraph (b)(a) of subsection (1) and paragraph (a) of subsection (5) of section 212.07,212.12, Florida Statutes, isare amended to read:

212.07 Sales, storage, use tax;

tax added to purchase price;

dealer not to absorb;

liability of purchasers who cannot prove payment of the tax;

penalties;

general exemptions.— (1) (b) A resale must be in strict compliance with s.

212.18 and the rules and regulations adopted thereunder.

A dealer who makes a sale for resale that is not in strict compliance with s.

212.18 and the rules and regulations adopted thereunder is liable for and must pay the tax.

A dealer who makes a sale for resale shall document the exempt nature of the transaction, as established by rules adopted by the department, by retaining a copy of the purchaser’s resale certificate.

In lieu of maintaining a copy of the certificate, a dealer may document, before the time of sale, an authorization number provided telephonically or electronically by the department, or by such other means established by rule of the department.

The dealer may rely on a resale certificate issued pursuant to s.

212.18(3)(e) s.

212.18(3)(d), valid at the time of receipt from the purchaser, without seeking annual verification of the resale certificate if the dealer makes recurring sales to a purchaser in the normal course of business on a continual basis.

For purposes of this paragraph, “recurring sales to a purchaser in the normal course of business” refers to a sale in which the dealer extends credit to the purchaser and records the debt as an account receivable, or in which the dealer sells to a purchaser who has an established cash or C.O.D.

account, similar to an open credit account.

For purposes of this paragraph, purchases are made from a selling dealer on a continual basis if the selling dealer makes, in the normal course of business, sales to the purchaser at least once in every 12-month period.

A dealer may, through the informal protest provided for in s.

213.21 and the rules of the department, provide the department with evidence of the exempt status of a sale.

Consumer certificates of exemption executed by those exempt entities that were registered with the department at the time of sale, resale certificates provided by purchasers who were active dealers at the time of sale, and verification by the department of a purchaser’s active dealer status at the time of sale in lieu of a resale certificate shall be accepted by the department when submitted during the protest period, but may not be accepted in any proceeding under chapter 120 or any circuit court action instituted under chapter 72.

Section 9. Paragraphs (f) is added to subsection (4) of section 212.11, Florida Statutes, to read:

212.11 Tax returns and regulations.— (4) (f) A marketplace provider that makes or facilitates a substantial number of remote sales or a person who is required to report remote sales shall file returns and pay taxes by electronic means under s.

213.755.

Section 10. Paragraph (a) of subsection (1) and paragraph (a) of subsection (5) of section 212.12, Florida Statutes, are amended to read:

Section 11. Present8. Paragraph paragraphs (c) through (f) of subsection (3) of section 212.18, Florida Statutes, are redesignated as paragraphs (d) through (g), respectively, a new paragraph (c) is addedamended to that subsection, and present paragraph (f) of that subsection is amended, to read:

rules.— (3) (c) A(f) As marketplaceused providerin thatthis makesparagraph, orthe facilitatesterm a“exhibitor” substantialmeans number of remote sales or a person who isenters requiredinto toan reportagreement remoteauthorizing salesthe mustdisplay fileof withtangible thepersonal departmentproperty anor applicationservices forat a certificateconvention ofor registrationa electronically.trade show.

(g)(f) As used in this paragraph, the term “exhibitor” means a person who enters into an agreement authorizing the display of tangible personal property or services at a convention or a trade show.

1094964 A person who conducts a convention or a trade show must make his or her exhibitor’s agreements available to the department for inspection and copying.

Section 12. Subsection9. Subsection (4) of section 212.20, Florida Statutes, is amended to read:

Section 13. Subsection10. Subsection (5) of section 213.27, Florida Statutes, is amended to read:

Section 14. For11. This theact purposefirst ofapplies incorporatingto theremote amendmentsales made byor thisfacilitated acton toor sectionafter 212.054,July Florida1, Statutes,2021, inby referencesa thereto,person paragraphwho (c)made ofor subsectionfacilitated (2),a paragraphsubstantial (c)number of subsectionremote (3),sales paragraphin (c)calendar ofyear subsection2020. (8), and paragraph (c) of subsection (9) of section 212.055, Florida Statutes, are reenacted to read:

212.055 DiscretionarySection 12. (1) Upon registration with the Department of Revenue, a person subject to the requirements of this act to collect and remit the tax under chapter 212, Florida Statutes, on remote sales surtaxes;is relieved of liability for tax, penalty, and interest due on remote sales that occurred before the effective date of this act, including a person who is found by the Department of Revenue to have had a physical presence in this state before the effective date of this act.

legislativeThis intent;subsection is also intended to provide relief to a marketplace seller for sales made before the effective date of this act which were facilitated by a marketplace provider.

authorization and use of proceeds.—It is the legislative intent that any authorization for imposition of a discretionary sales surtax shall be published in the Florida Statutes as a subsection of this section, irrespective of the duration of the levy.

Each enactment shall specify the types of counties authorized to levy;

the rate or rates which may be imposed;

the maximum length of time the surtax may be imposed, if any;

the procedure which must be followed to secure voter approval, if required;

the purpose for which the proceeds may be expended;

and such other requirements as the Legislature may provide.

Taxable transactions and administrative procedures shall be as provided in s.

212.054.

(2) LOCAL GOVERNMENT INFRASTRUCTURE SURTAX.— (c) Pursuant to s.

212.054(4), the proceeds of the surtax levied under this subsection shall be distributed to the county and the municipalities within such county in which the surtax was collected, according to:

1. An interlocal agreement between the county governing authority and the governing bodies of the municipalities representing a majority of the county’s municipal population, which agreement may include a school district with the consent of the county governing authority and the governing bodies of the municipalities representing a majority of the county’s municipal population;

or 2. If there is no interlocal agreement, according to the formula provided in s.

218.62.

1165 Any change in the distribution formula must take effect on the first day of any month that begins at least 60 days after written notification of that change has been made to the department.

(3) SMALL COUNTY SURTAX.— (c) Pursuant to s.

212.054(4), the proceeds of the surtax levied under this subsection shall be distributed to the county and the municipalities within the county in which the surtax was collected, according to:

1. An interlocal agreement between the county governing authority and the governing bodies of the municipalities representing a majority of the county’s municipal population, which agreement may include a school district with the consent of the county governing authority and the governing bodies of the municipalities representing a majority of the county’s municipal population;

or 2. If there is no interlocal agreement, according to the formula provided in s.

218.62.

1184 Any change in the distribution formula shall take effect on the first day of any month that begins at least 60 days after written notification of that change has been made to the department.

(8) EMERGENCY FIRE RESCUE SERVICES AND FACILITIES SURTAX.— (c) Pursuant to s.

212.054(4), the proceeds of the discretionary sales surtax collected under this subsection, less an administrative fee that may be retained by the Department of Revenue, shall be distributed by the department to the county.

The county shall distribute the proceeds it receives from the department to each local government entity providing emergency fire rescue services in the county.

The surtax proceeds, less an administrative fee not to exceed 2 percent of the surtax collected, shall be distributed by the county based on each entity’s average annual expenditures for fire control and emergency fire rescue services in the 5 fiscal years preceding the fiscal year in which the surtax takes effect in proportion to the average annual total of the expenditures for such entities in the 5 fiscal years preceding the fiscal year in which the surtax takes effect.

The county shall revise the distribution proportions to reflect a change in the service area of an entity receiving a distribution of the surtax proceeds.

If an entity declines its share of surtax revenue, such revenue shall be redistributed proportionally to the entities that are participating in the sharing of such revenue based on each participating entity’s average annual expenditures for fire control and emergency fire rescue services in the preceding 5 fiscal years in proportion to the average annual total of the expenditures for the participating entities in the preceding 5 fiscal years.

(9) PENSION LIABILITY SURTAX.— (c) Pursuant to s.

212.054(4), the proceeds of the surtax collected under this subsection, less an administrative fee that may be retained by the department, shall be distributed by the department to the local government.

Section 15. This act first applies to remote sales made or facilitated on or after July 1, 2021, by a person who made or facilitated a substantial number of remote sales in calendar year 2020.

A marketplace seller shall consider only those sales made outside of a marketplace to determine whether it made a substantial number of remote sales in calendar year 2020.

Section 16. (1) A person subject to the requirements of this act to collect and remit the tax under chapter 212, Florida Statutes, on remote sales is relieved of liability for tax, penalty, and interest due on remote sales that occurred before the effective date of this act, provided that the person registers with the department before October 1, 2021.

This subsection is also intended to provide relief to a marketplace seller for remote sales made before the effective date of this act which were facilitated by a marketplace provider.

This(2) A subsectionperson doeswho notowes applyuse totax aunder personchapter who212, Florida Statutes, on the purchase of tangible personal property ordered by remote sale that was conducted before the effective date of this act is underrelieved audit;of liability for tax, penalty, and interest due.

hasThis beensubsection issueddoes anot bill,apply notice,to orthe demanduse fortax payment;liability of a registered dealer.

or is under an administrative or judicial proceeding before July 1, 2021.

(2) The department may not use data received from registered marketplace providers or persons making remote sales for the purposes of identifying use tax liabilities occurring before July 1, 2021, from unregistered persons who, but for their purchases from the registered taxpayer, would not be required to remit sales or use tax directly to the department.

This subsection does not apply to a person who is under audit;

has been issued a bill, notice, or demand for payment;

or is under an administrative or judicial proceeding before July 1, 2021.

Section 17. (1) The13. (1) The Department of Revenue is authorized, and all conditions are deemed met, to adopt emergency rules pursuant to s.

Section 18. If14. If any provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.

Section 19. Except15. Except as otherwise expressly provided in this act and except for this section, which shall take effect upon this act becoming a law, this act shall take effect July 1, 2021.