TALLAHASSEE, Fla. — Companies with Florida footprints are required to collect sales taxes on online purchases is nothing new, but there is no such mandate for “out-of-state” companies.

That likely is about to change because of fast-moving legislation that would require out-of-state e-tailers to collect sales tax from Floridians.

What You Need To Know

  • State legislature likely to approve tax on out-of-state online sales

  • The House Ways and Means Committee has signed off on the measure

  • The GOP wants funds raised from the tax to replenish unemployment tax trust fund

  • Democrats want the funds to go toward likely pandemic-induced budget shortfall

The Florida House’s powerful Ways and Means Committee on Thursday signed off on its version of the legislation, which calls for every penny of that sales tax to go toward replenishing Florida’s unemployment tax trust fund.

That trust fund has been hit hard by layoffs attributed to the COVID-19 pandemic, and business lobbyists pressured the House’s Republican leaders to use the anticipated $1 billion raised next year by the out-of-state online sales tax to fill it back up.

The change in House Bill 81 is designed “to make sure that those businesses aren't penalized by a 600 percent tax increase to make up that difference of that very important fund that we rely on during pandemics or other downturns in the economy,” Representative Chuck Clemons (R-Gainesville) said.

It’s a key change that has infuriated Democrats.

With Florida facing a pandemic-triggered revenue shortfall of more than $1 billion, Democrats say the sales tax ought to be used to avoid potentially painful budget cuts affecting everything from education to roads.

Representative Anna Eskamani (D-Orlando) tried to amend the bill to use some of the money to raise unemployment benefits by $100 per week.

“What this amendment attempts to do is to set a balance so that as businesses get a tax break that consumers are paying for, that the workers get something out of it, as well,” Eskamani said.

Republican leadership has not supported that effort. In fact, not all Republicans even support the basic idea of collecting more online sales taxes.

“We are creating a permanent tax increase, but we're attaching to it a temporary tax cut,” Representative Anthony Sabatini (R-Clermont) said.

However, Republicans and Democrats as a whole are in agreement that out-of-state companies also should be required to pay online sales taxes.

The Florida House and Senate are now on track to pass online sales tax expansion as soon as next week.