Florida Sales Tax Basics for Jacksonville Business Owners
A tax paid to a governing body for the sale of certain goods and services is the definition of sales tax. The State of Florida began the requirement for business owners to collect and remit sales tax for specified business activities in 1949. Outlined in Chapter 212 of the Florida Statutes, this Florida Sales Tax law can have serious consequences for business owners in Jacksonville, FL when violated.
This article provides an overview of the Florida sales tax requirements, as well as risks associated with missing your sales tax deadlines and not paying delinquent sales taxes.
Business Activities with Florida Sales Tax Requirements
Before registering your business with the State of Florida, our tax attorneys in Jacksonville, FL recommend determining if your future business activities will require the collection and remittance of sales tax. If you have already registered your Jacksonville-based business with the State of Florida, we recommend hiring an experienced tax professional to ensure you are properly charging and paying sales tax for your business activities.
Here are some activities that will require a Florida-based business to collect and remit Sales Tax:
• Admission charges for entertainment, recreation or sports venues
• Producing or manufacturing goods sold at retail
• Property rentals, leases, and licenses, including:
o Commercial office space
• Retail sales of items that will be taxed
• Sales of service warranty contract
• Short-term rentals, including:
o Beach rentals
o Motel/hotel rooms
o Timeshare resorts
o Travel parks
o Vacation homes
• Vending or amusement machine operations
• Tangible personal property repairs or alterations
If your business collects over $1,000 in sales tax annually, you are required to file monthly sales tax (due on or before the 20th). Form DR-115 is used to report Florida Sales Tax. The Florida Department of Revenue offers an online portal for electronic filing and paying sales tax. When you file and pay on time, you can get a credit up to $30. When you file and pay late, a 10% penalty is applied, and to under and late sales tax payments, a floating interest rate is also applied. If your return is incomplete, the State of Florida will also impose a penalty.
Filing Tips for Florida Sales Tax
The penalties for being late and for incomplete reporting add up quickly. Here are a few filing tips to ensure you stay compliant with the sales tax requirements:
• Don’t miss the monthly deadline (on or before 20th of each month)
• Set reminders on your calendar
• Compute sales tax correctly
• Complete your forms
• Don’t ignore delinquent sales tax letters
Do You Have Delinquent Florida Sales Tax? We Can Help!
He is the founder and Managing Partner of J. David Tax Law®. He is the winner of the 2019 Ultimate Tax Attorney awarded by the Jacksonville Business Journal. This award recognizes law firms and attorneys who show exemplary professional talent and skill while demonstrating superior client care, leadership, charitable concern, and civic engagement. Jonathan graduated from Chapman University School of Law. He has practiced law since 2011.
We provide tax solutions for our clients who have IRS and state tax debts, unfiled returns, audits, etc. We advise you on future compliance that enables your individual or business tax problems to be behind you for good.
7077 Bonneval Rd Suite 200, Jacksonville, FL 32216