E-commerce companies selling products to residents in the US state of Florida will have to collect a 6 per cent sales tax beginning July 1. The new tax is expected to raise $1 billion in revenue, which is planned to be used to support the state’s Unemployment Compensation Trust Fund, preventing a tax hike on businesses to maintain the solvency of the fund.

Governor Ron DeSantis signed the bill into law in April.

According to the Florida Chamber of Commerce, the state’s businesses would have been on the hook for a $713 million tax increase without passage of the bill. An amendment to the bill also reduced the business rent tax from 5.5 per cent to 2 per cent, according to media reports from the state.

Florida already had a ‘use tax’, which required residents to pay a 6 per cent sales tax on items purchased outside the state’s borders. This included purchases made through the Internet.

E-taxes were first made possible by a US Supreme Court decision in 2018.

Fibre2Fashion News Desk (DS)

Disclaimer - All News/Articles items are subject to copyright and no article either in full or part may be reproduced in any form without permission from Fibre2Fashion Pvt. Ltd.