State & Local Tax Blog

Understanding the New Florida Economic Nexus and Marketplace Facilitator Law

On July 1, 2021, Florida’s new economic nexus and marketplace facilitator laws will go into effect. In this post, we break down what these laws mean and what impact they could have on your business.

Since the creation of economic sales tax nexus in 2018, states have been working to pass legislation that makes marketplace facilitators and remote sellers responsible for collecting and remitting sales tax on marketplace transactions.

It’s taken a few years, but the vast majority of states have agreed that marketplace facilitators (Amazon, eBay, Walmart, etc.) should be responsible for the burden of collecting and remitting sales tax.

Florida has joined this growing consensus by passing its own economic nexus and marketplace facilitator laws. If you’re selling into the state of Florida, it’s important to understand these new laws and what they mean for your business.

Florida Economic Nexus

Remote sellers with no physical presence in Florida will have to register with the Florida Department of Revenue and collect and remit sales tax, if they have a sufficient economic presence in the state. Florida defined this economic threshold as $100k of taxable remote sales in the previous or current calendar year.

Florida’s Marketplace Facilitator Law

Florida also enacted a marketplace facilitator law that requires marketplaces with more than $100k in sales to collect and remit sales tax for third parties that sell through their platform.

If you have more questions about the details of these laws, how they apply to your business, or you need any other sales tax guidance, we’re here to help. Fill out our short What’s Next questionnaire to get in touch with our consultants for a free consultation.

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