Florida residents will be paying more taxes on online shopping purchases soon
Going into effect on July 1, online shoppers located in Florida will be paying sales tax on purchases made with companies that don’t have a physical presence in the state. For instance, a purchase on Walmart.com would collect sales tax because the state has plenty of physical Walmart locations in the state.
However, a purchase from a third-party vendor through a portal on Walmart and Amazon wouldn’t necessarily have to collect sales tax if they don’t have a store or warehouse location in the state. Previous to this change, Florida residents were required to self-report sales tax on out-of-state purchases; but the majority of residents ignored this law.
Florida lawmakers estimate they will collect one billion a year in additional taxes due to this change. For the average resident, they will pay an additional $40 to $50 per year in sales tax. Of course, that’s highly dependent on how much online shopping they do. Florida’s sales tax adds an additional 6% to a purchase, plus up to an additional 2.5% based on the county rates.
Florida is attempting to replenish state funds that have been depleted from difficulties from the COVID-19 pandemic. Florida relies heavily on sales tax rather than taxes like property tax, thus funding sources are recovering more slowly than other states.