HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 15 Taxation
SPONSOR(S): Commerce Committee, Ways & Means Committee, Clemons and others
TIED BILLS: IDEN./SIM. BILLS: CS/CS/SB 50
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Ways & Means Committee 16 Y, 2 N, As CS Berg Aldridge
2) Commerce Committee 23 Y, 0 N, As CS Willson Hamon
SUMMARY ANALYSIS
The bill requires marketplace providers and out-of-state retailers with no physical presence in Florida to collect
Florida’s sales tax on sales of taxable items delivered to purchasers in Florida if the marketplace provider or
out-of-state retailer makes a substantial number of sales into Florida. A substantial number of remote sales
means conducting any number of taxable retail sales in an amount exceeding $100,000 during the previous
calendar year. The bill makes conforming changes to ensure consistent administration of the new provisions.
The bill also requires marketplace providers to collect and remit three fees related to the sales tax (the waste
tire fee, lead-acid battery fee, and E911 prepaid wireless fee), beginning April 1, 2022, and provides a safe
harbor for businesses who failed to collect the sales tax prior to July 1, 2021, as long as they register with the
Department of Revenue prior to October 1, 2021.
The bill removes the requirement that dealers use a bracket system to calculate the applicable sales tax on
transactions, and replaces it with a rounding system.
To avoid a significant, unexpected increase in reemployment assistance tax rates on Florida employers, the bill
temporarily directs the Department of Revenue to calculate applicable rates without respect to pandemic
effects until such time as the Unemployment Compensation Trust Fund has been replenished to a pre-
pandemic level. The bill also directs $973.6 million (FY 2021-22), increasing to $1.08 billion (FY 2022-23
forward), to be distributed from sales tax collections to the Unemployment Compensation Trust Fund each
year, until such time as the trust fund reaches its pre-pandemic balance ($4,071,519,600). Once the trust fund
reaches its pre-pandemic balance, the bill reduces the business rent tax from 5.5% to 2%.
The Revenue Estimating Conference (REC) estimated that the sales tax collection provisions of the bill will
have a positive revenue impact in FY 2021-22 totaling $1,203.4 million ($1,337.0 million recurring) of which
$973.6 million ($1,079.7 million recurring) is on General Revenue, $0.3 million ($3.6 million recurring) is on
state trust fund revenues, and $229.5 million ($253.7 million recurring) is on local government revenues.
The bill provides that the act may be cited as the “Park Randall ‘Randy’ Miller Act.”
Except as otherwise provided, the bill takes effect July 1, 2021.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Florida Sales and Use Tax
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal property,
admissions,1 transient rentals,2 rental of commercial real estate,3 and a limited number of services.
Chapter 212, F.S., authorizes the levy and collection of Florida’s sales and use tax, and provides
exemptions and credits applicable to certain items or uses under specified circumstances. Sales tax is
added to the sales price of the taxable good or service and is collected from the purchaser at the time
of sale.4
In addition to the state tax, s. 212.055, F.S., authorizes counties to impose nine local discretionary
sales surtaxes. A surtax applies to “all transactions occurring in the county which transactions are
subject to the state tax imposed on sales, use, services, rentals, admissions, and other transactions by
[ch. 212, F.S.], and communications services as defined in ch. 202.”5 The discretionary sales surtax is
based on the tax rate imposed by the county where the taxable goods or services are sold, or are
delivered. Discretionary sales surtax rates currently levied vary by county in a range from 0.5 to 2.5
percent.6
When calculating the tax due, s. 212.12, F.S., provides a bracket system to determine the applicable
tax based on the total sales price of a transaction.7
Electronic Filing and Payment Requirements
Florida law authorizes the Department of Revenue (Department) to require taxpayers who remitted
$20,000 or more in tax payments during the previous state fiscal year to file returns and remit taxes
electronically.8 In some instances, a dealer9 must file returns and remit taxes electronically irrespective
of how much tax is remitted. For example, consolidated filers,10 dealers who operate two or more
places of business and maintain records in a central office, or a dealer claiming a tax credit on behalf of
a tenant who donated to an eligible scholarship organization must file returns and remit tax
electronically.11
1 S. 212.04, F.S.
2 S. 212.03, F.S.
3 S. 212.031, F.S.
4 S. 212.07(2), F.S., and s. 212.06(3)(a), F.S.
5 S. 212.054, F.S.
6 Office of Economic and Demographic Research, The Florida Legislature, Florida Tax Handbook, 2020 Local
Discretionary Sales Surtax Rates in Florida’s Counties, 231-232 (20), available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2020.pdf (last visited March 9, 2021).
7 Section 212.12(9)-(11), F.S., provides brackets, or for the provision of brackets, for all transaction amounts ending in
specified cents, under the 6% state tax, a 7% tax consisting of the 6% state and 1% discretionary sales surtax, and for
combined rates for other than 6% or 7%. The Department of Revenue provides these brackets on their website at
https://floridarevenue.com/taxes/taxesfees/Pages/tax_interest_rates.aspx#sales (last visited March 24, 2021).
8 S. 213.755, F.S.
9 Section 212.06(2)(a), F.S., defines “dealer” as every person, who manufactures or produces tangible personal property
for sale at retail; for use, consumption, or distribution; or for storage to be used or consumed in Florida.
10 S. 213.755(5), F.S.
11 S. 212.099, F.S.
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 Registration Requirements
A person desiring to engage in or conduct business in this state as a dealer must file with the
Department an application for a certificate of registration. The application must be submitted to the
Department before the person engages in taxable activity. The Department, upon receipt of such
application, shall grant to the applicant a certificate of registration and an annual resale certificate,
which provides a dealer the necessary documentation to purchase goods for resale exempt from tax.12
Remote Sales Tax Collection
As discussed above, sales tax is added to the price of taxable goods and the selling dealer is required
to collect the tax from the purchaser at the time of sale.13 A dealer then remits the collected taxes to the
Department.14
For items sold by an out-of-state dealer and delivered to the in-state purchaser via mail (mail-order
sales), states have depended on their use taxes. Florida imposes a use tax that applies in these
situations;15 however, use tax compliance is notably low.
Having an out-of-state dealer collect the state’s sales tax at the time of sale and remit those taxes to
the state is simpler for consumers than compliance with a state’s use tax laws. However, the U.S.
Supreme Court interpreted the Commerce Clause of the U.S. Constitution to require that a dealer have
a “substantial nexus” with the taxing state before the taxing state may require the out-of-state dealer to
collect its sales taxes.16 For decades, the U.S. Supreme Court has interpreted this substantial nexus
requirement to mean the dealer must have a physical presence (people or property) within the taxing
state in order for that state to be able to compel the dealer to collect its sales tax.17 The Court reasoned
that to allow a taxing state to require a dealer located outside the taxing state (without a physical
presence) to collect sales tax on behalf of the taxing state was an undue burden on interstate
commerce.18
Under the “physical presence” standard, Florida, in 1987, adopted its “mail order sales statute,” which
defines a mail order sale to be the sale of tangible personal property, ordered from a dealer who
receives the order in another state and then causes the property to be transported to a person in this
state.19 Although the statute describes dealers who “receive [orders] in another state,” application of the
statute was still limited by the U.S. Supreme Court’s physical presence standard. In fact, much of the
statute is written in terms of being physically present within Florida.20
Taxation of Mail Order Sales
Section 212.0596, F.S., establishes when a dealer who makes a mail-order sale is subject to the
powers of this state to levy and collect Florida’s sales tax. A “mail-order sale” is a sale of tangible
personal property, ordered by mail or other means of communication, from a dealer who receives the
order in another state of the United States, or in a commonwealth, territory, or other area under the
jurisdiction of the United States, and transports the property or causes the property to be transported to
a person in Florida.21
12 S. 212.18(3), F.S.
13 Florida Dept. of Revenue, Who must pay tax? Partial list of taxable business activities, available at
https://floridarevenue.com/taxes/taxesfees/Pages/sales_tax.aspx (last visited March 9, 2021).
14 S. 212.15, F.S.
15 See s. 212.06, F.S.
16 See Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977).
17 National Bellas Hess, Inc., v. Illinois, 386 U.S. 753 (1967); Quill Corporation v. North Dakota, 504 U.S. 298 (1992).
18 Quill Corporation v. North Dakota, at 314-315.
19 See s. 212.0596(1), F.S.
20 See s. 212.0596(2)(j), F.S. (requiring dealers to collect tax on mail order sales if the dealer owns real property or
tangible personal property that is physically in this state…).
21 S. 212.0596(1), F.S.
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 Pursuant to s. 212.0596(2), F.S., a dealer who makes a mail-order sale is subject to the power of this
state to levy and collect the tax imposed by ch. 212, F.S., under any of the following circumstances:
 The dealer is a corporation doing business under the laws of this state or is a person domiciled
in, a resident of, or a citizen of, this state.
 The dealer maintains retail establishments or offices in this state.
 The dealer has agents in this state who solicit business or transact business on behalf of the
dealer.
 The property was delivered in this state in fulfillment of a sales contract that was entered into in
this state when a person in this state accepted an offer by ordering the property.
 The dealer, by purposefully or systematically exploiting the market provided by this state by any
media-assisted, media-facilitated, or media-solicited means, creates nexus with this state.
 Through compact or reciprocity with another jurisdiction of the United States, that jurisdiction
uses its taxing power and its jurisdiction over the retailer in support of this state’s taxing power.
 The dealer consents, expressly or by implication, to the imposition of the tax imposed by
ch. 212, F.S.
 The dealer is subject to service of process under s. 48.181, F.S.
 The dealer’s mail order sales are subject to the power of this state to tax sales or to require the
dealer to collect use taxes under a statute or statutes of the United States.
 The dealer owns real property or tangible personal property that is physically in this state.
 The dealer is a corporation that is a member of an affiliated group of corporations and whose
members are eligible to file a consolidated tax return for federal corporate income tax purposes
and any parent or subsidiary corporation in the affiliated group has nexus with this state.
 The dealer or the dealer’s activities have sufficient connection with or relationship to this state or
its residents of some type, other than those described above, to create nexus empowering this
state to tax its mail order sales or to require the dealer to collect sales tax or accrue use tax.22
A dealer who makes a mail order sale into this state is exempt from collecting and remitting any local
option surtax on the sale, except under certain circumstances.23 The Department may establish by rule
procedures for collecting the use tax from unregistered persons who but for their remote purchases
would not be required to remit sales or use tax directly to the Department.24
Currently, a purchaser who remits use tax on an item imported into Florida for use or consumption is
not required to include in the remittance any local discretionary sales surtax.25
The Wayfair Decision
On June 21, 2018, the U.S. Supreme Court decided South Dakota v. Wayfair.26 Wayfair involved a new
South Dakota sales tax collection statute and Wayfair, Inc., a large online retailer with no physical
presence in South Dakota that sells and ships tangible personal property to customers all over the
United States.
The Wayfair decision overturned the “physical presence” substantial nexus test under the Commerce
Clause of the U.S. Constitution. The removal of the physical presence test expanded states’ ability to
collect sales taxes; however, the foundational constitutional requirement that state laws may not place
an undue burden upon interstate commerce remains.
The facts involved in Wayfair provide guidance for states in determining the structure of a state
requirement for a remote seller without physical presence in the taxing state to collect and remit that
state’s sales and use tax:
 The South Dakota law requires only remote sellers with $100,000 of sales or 200 individual
transactions into South Dakota to collect its sales tax. The law effectively has a “small seller
22 S. 212.0596(2), F.S.
23 S. 212.0596(6), F.S.
24 S. 212.0596(7), F.S. DOR has adopted Rule 12A-1.091, F.A.C. to, in part, address this issue.
25 See Rule 12A-1.091(14)(d), F.A.C.
26 South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018).
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 exception” allowing small retailers—theoretically, the ones most burdened by remote sales tax
collection—to avoid collection responsibilities.
 The South Dakota law did not apply retroactively.
 South Dakota is a member of the Streamlined Sales and Use Tax Agreement, which provides a
simplified registration process, as well as free software to assist with collection and reporting.
State Reactions to Wayfair
In response to the Wayfair decision, 43 states and the District of Columbia have enacted provisions
requiring remote sellers to collect sales tax, and 42 states and the District of Columbia have enacted
provisions requiring a marketplace provider/facilitator to collect sales tax.27
Fees Related to Sales of Certain Items
Enhanced 911 Fee
The Emergency Communications Number E911 Act established a comprehensive statewide
emergency telecommunications number system to provide users of voice communications services
within this state rapid direct access to public safety agencies by accessing the telephone number “911.”
To accomplish this purpose, the Legislature authorized the levy of a reasonable fee on users of voice
communications services. With respect to wireless communications services, the fee is bifurcated by
non-prepaid wireless service28 and prepaid wireless service.29
The fee imposed on prepaid wireless services is currently 40 cents and is collected by a seller for
remittance to the Department. Revenues derived from the fees levied on prepaid wireless services, less
the costs of administration, are deposited by the Department into the Emergency Communications
Number E911 System Fund30 and then distributed, in part, to the various counties for specific purposes
and costs attributable to providing E911 service.31 In Local Fiscal Year 2019-20 counties received
approximately $15 million of prepaid wireless services fees.32
Fees for Waste Tires and Lead-acid Batteries
Waste tires and lead-acid batteries are considered “special wastes” that require special handling and
management33 and must be disposed of accordingly.34 Each new tire sold at retail is subject to a $1
waste tire fee35 and each new or remanufactured lead-acid battery is subject to a $1.50 lead-acid
battery fee.36
The proceeds from the waste tire fee are deposited into the So