TALLAHASSEE, Fla. (AP) — Florida lawmakers took the first step Thursday toward joining the ongoing national battle to force online retailers to start collecting sales taxes.
A state Senate committee agreed to introduce a bill (SB 7206) that would require online retailers such as Amazon.com to collect the state's 6 percent sales tax if the retailer has a warehouse or provides commissions to Florida residents who direct customers to the website.
Those backing the bill say they aren't trying to generate more money for the state but that they are supporting it to help merchants in Florida who are losing out to online retailers that don't collect sales taxes.
"It's an issue of fairness," said Rick McAllister, president and CEO of the Florida Retail Federation told legislators. "It's not about the taxes collected. ... We don't care what you do with the money, just don't get in the business of picking winners and losers in the marketplace."
Floridians are supposed to pay taxes for online purchases, but there's no way to for the state to enforce the law unless the retailer has a physical presence in the state. Other states have tried to go after online retailers that have connections to in-state merchants, but those laws are being challenged in court.
The bill has the backing of business groups in the state, but could face an uphill battle.
Rep. Steve Precourt, R-Orlando and chairman of the House panel that deals with tax legislation, bluntly predicted this week that the House would not vote to raise taxes.
Sen. Evelyn Lynn, R-Ormond Beach and one of the main backers of the bill, is trying to sidestep the criticism that it would raise taxes. The legislation includes a requirement that the state hold sales tax holidays to return to taxpayers an amount equal to what's collected online. Studies have suggested as much as $800 million in local and state sales taxes are not being turned over.
Gov. Rick Scott has said he would be open to an online sales tax bill if it does not raise the overall tax burden on Floridians.
Representatives of Amazon.com have asked legislative leaders for a two-year exemption from any sales taxes in exchange for a promise to build two distribution centers and bring as many 3,000 jobs to the state. Amazon has made similar deals in other states including South Carolina.
Amazon's representatives have stressed that they would not bring the jobs without the tax break, which is opposed by Florida retailers.
McAllister told lawmakers that the online retailer will eventually have to create distribution centers in Florida. He predicted that the future of Internet sales will require online retailers to be able to deliver products to customers within one day.
"It's a long way from Alabama to Miami," he said. "They are going to come here."
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Comments » 13
John_Galt writes:
Hey you greedy vampires, look how well this idea worked for California and Amazon! You incredible idiots!
If this makes you mad, go here and vote for someone that will not stand for this!
http://www.electRichter.com
BTW: NDN: Try putting this on the FRONT PAGE!!!
MisterK writes:
I'm not sure if this is the answer, but I dislike the online retailing. It hurts local employment. Many local retailers have aggressive online sales programs. I prefer to make purchases in store to support the sales of employees. Don't let management cut out the employment and make purchases in store.
rasputin writes:
Those republicans are all about no new taxes...until they need to run their governmental scheme.
news_hound1 writes:
Um, aren't you about 15 years too late, to make comments about on-line retailing?
Beachglow writes:
Can we limit comments to a couple of sentences?
These frustrated people need to go see a psychiatrist or psychologist to get their issues worked out. It's almost comical, let alone nonsensical.
Stick to the issue at hand, please, so I don't waste my time reading this dribble.
BillyBob1 writes:
This will cost the citizens of Fla. Billions of dollars. They need to kill this bill now and we need to find who supports it and vote them out ASAP.
Caliban writes:
I think they need to just enforce the laws that exist and begin auditing everybody who purchases stuff online. It is the consumers responsibility to pay the tax, and if they are not then they are just common criminals. How many of you actually pay the sales tax?
Bramble writes:
Give Amazon the two-year exemption in exchange for their building distribution centers here. Why not, it makes more sense than taxpayers paying wealthy companies to build baseball stadiums or science labs.
The more you shop online you find that you can get EXACTLY what you want, don't have to listen to an ignorant sales clerk mumble rubbish, nor have to stand in those long, long checkout lines.
wonderful writes:
Let's see what they do with the money they have now and what they do for the State and the people before we entrust anymore!
Should be getting a lot more cash staying here when they start to dismantle Washington of the CHUB, eh?
This should only be considered after they rape the public and private pension funds from the boomers and the elderly, RIGHT?
GITMO!
HarryNuts writes:
WOW they have their hands in our pockets again huh? What a surprise.
It's okay that we are already taxed for everything and anything...now they are just getting creative with shaking us upside down for the change in our pockets.
Why don't they spend their terms HELPING this country in a positive way instead of finding new ways to fck us?
Tweedledee writes:
A 20 mile R/T to a mall, in heavy traffic and a light at every corner is closing in on $8 in gas. That's what drove me to Amazon. Plus 100% less chance of car being totaled -- or worse!
John_Galt writes:
Here's an idea - if you don't want internet sales to hurt local sales, ELIMINATE THE SALES TAX, don't tax internet sales! Greedy S.O.B.s will just increase spending.
SHIFTT writes:
Oh god no.
Not more taxes.
If FL adds tax to online sales, it won't stop my online shopping. It will just change the way I shop; I'll go out of my way, even to pay MORE, to purchase from online retailers. Catch up to the times people, online shopping has only increased, why would any FL retailer not have an online shop?!?!?! WHY?! Because they are either lazy, or lack sufficient funds (to launch an online store) which already means they're on their way out; out-of-business.
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