Since the advent of e-commerce — online retailers with products to sell — a major advantage has been a national and international marketplace devoid of sales tax collections for the most part.

The rule is that if an online retailer does not have a physical presence in the state, it does not collect sales tax on items sold. But escaping sales tax collections is starting to halt. Already more than a dozen states have laws governing online sales tax collections, according to USA TODAY. An information graphic in USA TODAY on Feb. 9 showed that Florida is among 10 states this year in pursuit of sales tax collections from online retailers.

Last week in the Florida Senate, a committee substitute for Senate Bill 1514 passed the banking and finance committee, 9-1. Its next stop is the Senate appropriations committee and if it is approved there, then it is on to the Senate floor for a vote. But a House version has not moved on in the House. It’s possible that the House is waiting for the Senate’s bill to pass first. Whatever the plan, we support the passage of an online sales tax collection bill and then being signed into law by the governor.

The Senate version includes authority for a sales tax holiday equal to the estimated amount of collection. News accounts of the bill’s proposal say that Senate leadership has said the bill won’t pass in an election year if it looks like a tax — which it is. But the sales tax holiday would save it.

We’re all for whatever it takes to bring equity to sales tax collections from out- of- state online retailers. Such a law would level the competition between online retailers outside the state and those in malls and free-standing stores in Florida. The stores have to collect the six percent sales tax and report it to the state. Online retailers have not been doing that so there is automatic savings for consumers. The growth of online retail can put actual stores out of business as their sales drop.

Current sales tax collections make up 70 percent of the state’s annual revenue. Collecting sales tax from online out-of-state retailers could boost that collection by hundreds of millions of dollars.

In a state that is facing another $2-3 billion revenue shortfall next year, that money could go a long way for public education, health care, elder care, criminal justice, prisons, roads and so much more. Collecting the sales tax on out-of-state online sales is long overdue. read more

StAugustine.com
http://staugustine.com/opinions/2012-02-18/our-view-floridas-collection-online-sales-tax-long-overdue#.T0KkKNWaKSo