Time now for e-fairness

Florida's elected leaders need to end the competitive disadvantage faced by Florida retailers competing against out-of-state retailers for the same product sales, potentially costing the state thousands of jobs and millions of dollars.

For more than a decade, Florida TaxWatch has asserted that the state can level the playing field through the collection of legally owed —but at present, largely uncollected — sales tax on Internet or "remote" sales.

Fixing this inequity would not impose a new tax on Floridians, as sales tax on Internet purchases is already required by law to be paid. However, as the law currently exists, it is the responsibility of the shopper, rather than the vendor, to remit the tax payment directly to the state, and few taxpayers are even aware this is required. Evidence suggests that Florida is losing out on hundreds of millions of dollars each year from this tax not being collected, and the revenue can be used to reduce other taxes currently hurting Floridians.

Even more significant than the offsetting revenue, though, is the impact that not collecting this tax has on local businesses. With so many online retailers offering free shipping, our brick-and-mortar neighbors — paying their required state and local taxes as good corporate citizens — are losing customers to (assumed) tax-free purchases online, which costs local businesses revenue and the people of Florida jobs, and makes it more difficult to build a sustainable, productive economy in Florida.

There are many things the Legislature can do to balance the budget without raising or imposing new taxes and fees on Floridians. Collecting taxes that are currently owed is one way.

When combined with the 134 other recommendations in the Florida TaxWatch Government Cost Savings Task Force report, it would go a long way toward balancing the budget, stabilizing and controlling our tax base, and helping grow and diversify Florida's economy.