In 2024, New Year’s Day isn’t just for ringing in the New Year, it’s for ringing up tax free sales. At least, in Florida it is.
Florida announced a Back to School Sales Tax Holiday to take place from January 1st through 14th, 2023.
According to the Florida Department of Revenue, items to be sold tax free include:
- Clothing, footwear, and certain accessories with a sales price of $100 or less per item
- Certain school supplies with a sales price of $50 or less per item
- Learning aids and jigsaw puzzles with a sales price of $30 or less
- Personal computers and certain computer-related accessories with a sales price of $1,500 or less, when purchased for noncommercial home or personal use
The holiday does not apply to:
- Any item of clothing with a sales price of more than $100
- Any school supply item with a sales price of more than $50
- Books that are not otherwise exempt
- Computers and computer-related accessories with a sales price of more than $1,500
- Computers and computer-related accessories purchased for commercial purposes
- Rentals of any eligible items
- Repairs or alterations of any eligible items
- Sales of any eligible items within a theme park, entertainment complex, public lodging establishment, or airport
What E-Commerce Retailers Need to Know about Florida’s Sales Tax Holiday
According to the Florida Department of Revenue, this holiday is mandatory for most retailers. Retailers should sell these back-to-school items tax free and then report them as “exempt” on their sales tax returns.
Are you a remote (i.e. out-of-state) seller with nexus in Florida? According to Florida DOR, this holiday applies to your business, too. If an applicable order into your store is accepted during the sales tax holiday period, then the sale on relevant items is tax exempt.
Basically, according to the state of Florida, remote and e-commerce sales of applicable products during the two week sale period should be treated like any other remote sale. For example, if you sell a product that is not subject to sales tax, you also wouldn’t charge sales tax on the shipping price of that product.
Fortunately, the Florida Department of Revenue has provided a handy guide to handling this year’s first sales tax holiday.
Florida also still has ongoing yearlong sales tax holidays on energy efficient appliances, gas ranges and cooktops, and impact-resistant windows, doors and garage doors.