STATEWIDE — Faced with a $2.7 billion revenue shortfall driven by the coronavirus pandemic, the Florida Legislature's Republican leaders are considering ordering out-of-state online retailers to collect sales taxes from Florida customers, a step they have long resisted taking but one that could raise hundreds of millions of dollars annually.


What You Need To Know

  • Florida is facing a $2.7 billion budget shortfall thanks to the coronavirus pandemic

  • Republican state legislators are considering ordering out-of-state retailers to collect sales tax from Florida residents

  • It is estimated the move would create $321 million in revenue the first year

Addressing Capitol reporters last month, the new presiding officers of the state House and Senate said they were inclined to support online sales tax collection enforcement legislation, but they pointedly denied the measures would amount to tax increases.

"If you think about all of our brick and mortars in this state that work hard every day, we put rules in place, they follow those rules, they collect tax and they send it to us," said Senate President Wilton Simpson (R-Trilby). "And then, that same client, the customer goes out to the internet and buys the same thing — they still owe the same tax. We just use the honor system to collect that tax."

State economists have estimated that requiring out-of-state e-commerce entities to remit sales taxes would raise $321 million in the first year and $479 million annually thereafter.

Online retailers with offices in Florida, including Amazon, are already required to remit sales taxes to the state Division of Revenue. Enforcement measures, suggested House Speaker Chris Sprowls (R-Palm Harbor), would simply be an extension of the state's existing policy.

"I'd rule out tax increases, but what you're suggesting is something like the sales tax collection on something," he said. "You know, sales tax already exists, you know, there's a sales tax in the state of Florida."

Lawmakers are also moving closer to striking a new gaming compact with the Seminole Tribe. A previous compact expired a year and a half ago, depriving the state of $350 million in annual revenue sharing.

Even if the two revenue-generating measures were to be approved, however, lawmakers would still be facing a significant budget hole. In his media availability, Simpson said education funding, which has seen exceptionally large growth over the last decade, could be subject to cuts.