HB 165 Summary: Streamlined Sales and Use Tax Agreement

• Aligns Florida sales tax with the Streamlined Sales and Use Tax Agreement by adding comprehensive definitions, sourcing rules, and compliance procedures for multi-state sellers and certified service providers.

• Eliminates tax bracket system and replaces it with rounding to the nearest whole cent for calculating sales and use taxes, simplifying tax computation for dealers.

• Restricts $5,000 discretionary surtax cap to motor vehicles, aircraft, boats, and manufactured/mobile homes only (previously applied to all tangible personal property).

• Establishes nexus protection and amnesty provisions for sellers registering under the agreement, including safe harbor from audit liability for Model 1 sellers using certified service providers and amnesty for uncollected taxes prior to registration.

• Creates administrative infrastructure including databases for tax rate/jurisdiction identification, taxability matrices, and procedures for certifying service providers and automated systems that calculate taxes based on delivery location.