The Florida Department of Revenue just announced a small bit of tax relief for businesses affected by the economic effects coronavirus pandemic. Big picture, the Florida Department of Revenue will provide interest and penalty waivers for the February period payment (normally due March 20th) if the payment is made by March 31st. The following types of taxes are provided relief:
1) Sales and Use Tax (includes Discretionary Sales Surtax). [Sections 212.11 (1 )(b), 212.12(2)(a) and (b), and 212.12(3), F.S.]
2) Tourist Development Tax (for counties administered by the Department). [Section 125.0104(3)(g), F.S.]
3) New Tire Fees (Solid Waste and Surcharge Return). [Sections 403.718(1) and 403.718(3)(a), F.S.]
4) Rental Car Surcharge (Solid Waste and Surcharge Return). [Section 212.0606(4), F.S .]
5) Prepaid Wireless E-911 Fee. [Section 365.172(9)(9)6., F.S.]
6) Lead Acid Battery Fees (Solid Waste and Surcharge Return). [Section 403. 7185(3)(a), F. S.]
7) Dry-Cleaning Gross Receipts (Solid Waste and Surcharge Return). [Section 376.70, F.S.)
If your business is affected by the coronavirus, then the business will also get interest and penalty relief as long as March’s taxes (normally due April 20th) are paid by April 30th. This applies to the same type of taxes. Whether your business is considered “adversely affected by the coronavirus” is defined as:
1) The business closed in March 2020 in compliance with a state or local government order issued in response to the COVID-19 outbreak and following the closure had no taxable transactions for the taxes listed in paragraph 2.8. above; or
2) The business experienced sales tax collections in March 2020 that are less than 75% of March 2019 sales tax collections; or
3) The business was established after March 2019; or
4) The business is registered with the Department to file quarterly.
A 10 day delay is not a lot for most businesses. The best answer I have for you is that the sunshine state has become extremely dependent on the monthly stream of sales tax revenue coming in and doesn’t have the financial resources to delay hundreds of millions of dollars in revenue for very long. When our federal congress finally gets their act together, hopefully we can get some more substantial relief. Until that time, we are here for you if you have any sales and use tax questions. Stay safe and healthy!
About the author: James Sutton is a Florida licensed CPA and attorney as well as a partner in Moffa, Sutton, & Donnini, PA. Mr. Sutton is charge of the Tampa office of the firm and practices almost exclusively in the area of Florida Sales & Use Tax Controversy. Mr. Sutton handles audits, protest, litigation, criminal cases, revocations, collections, and consulting engagements all in the area of sales tax. Mr. Sutton is an active member in the FICPA, AICPA, AAA-CPA, and FIADA. Mr. Sutton is also the State and Local Tax Chairman for the AAA-CPA and president of the Florida AA-CPA. If you are interested in learning more about Florida sales tax from Mr. Sutton, you can find his speaking engagements around the state HERE. Otherwise, you can learn more about Mr. Sutton in his firm bio HERE.
At the Law Office of Moffa, Sutton, & Donnini, PA, our primary practice area is state and local taxes, with a very heavy emphasis in Florida sales and use tax. We have defended Florida businesses against the Florida Department of Revenue since 1991 and have over 100 years of cumulative sales tax experience within our firm. Our partners are both CPAs/Accountants and Attorneys, so we understand both the accounting side of the situation as well as the legal side. We represent taxpayers and business owners from the entire state of Florida. Call our offices today for a FREE INITIAL CONSULTATION to confidentially discuss how we can help put this nightmare behind you.
AUTHORITY
FL DOR Executive Order of Emergency - # 20-52-DOR-002
ADDITIONAL RESOURCES
RESTAURANT FLORIDA SALES TAX HANDBOOK, published January 4, 2018, by David Brennan, Esq and James Sutton, CPA, Esq.
GO TO JAIL FOR NOT PAYING FLORIDA SALES TAX?, published November 3, 2013, by James Sutton, CPA, Esq.
FLORIDA SALES TAX GUIDE FOR BAKERIES, published March 2, 2020, by David Brennan, CPA
Florida Sales Tax Informal Written Protest, published November 17, 2018, by James Sutton, CPA, Esq.
Protest a FL Sales and Use Tax Audit, published August 8, 2019, by Matthew Parker, Esq.