The Florida Department of Revenue has released an abundance of tax information publications regarding the upcoming Back-to-School sales tax holiday. The tax-free period begins one minute past midnight on Friday, August 1, 2014, and concludes at 11:59 p.m. on Sunday, August 3. Floridians: prepare to shop!
FAQs for business owners
One notice answers questions frequently asked by business owners, such as:
- “Am I responsible for correctly charging sales tax during the tax holiday?” Answer = yes.
- “What should I do if I mistakenly collect tax on a tax-exempt item during a sales tax holiday?” Answer = give it back.
- “Do I have the option of not participating in a sales tax holiday?” Answer = no.
FAQs for consumers
Another notice answers questions frequently asked by Florida taxpayers, such as:
- Are any business locations excluded from this holiday? Answer = yes.
- Why are some items excluded from this holiday? Answer = the law exempts only certain items.
- Do internet and mail order purchases qualify for the sales tax holiday? Answer = yes, if the items are eligible for the exemption.
Out-of-state sellers: a good question
That last question is worth calling out. Out-of-state vendors with a Florida sales tax obligation must abide by the sales tax holiday rules and regulations. Retailers who sell into multiple states need to be on guard for sales tax holidays in those states. To date, 15 states have announced sales tax holidays in 2014, and some of those states provide multiple tax-free periods; Florida alone is offering 3 sales tax holidays this year. A number of other states are considering adding sales tax holidays this year, while North Carolina recently repealed two sales tax holidays.
It may seem like sales tax holidays were created to trip up retailers, but they weren’t. They’re popular among the people (even if they’ve been questioned by tax experts), so they’re popular with politicians.
An automated sales tax solution helps retailers prepare for sales tax holidays, wherever they are. Learn how it works.
