HB 497 - Small Business Fairness Act Summary

• Reduces communications services tax rates effective January 1, 2014: from 5 percent to 5.65 percent on standard services and from 9.1 percent to 10.8 percent on direct-to-home satellite services, offsetting revenue loss with increased mail order sales tax collections

• Expands mail order sales definition to explicitly include Internet sales and requires dealers without physical presence in Florida to collect sales and use tax if they have substantial nexus with the state through specified activities

• Creates rebuttable presumption that dealers are subject to Florida tax if they have affiliate relationships agreements with state residents who refer customers and cumulative referral sales exceed $10,000 in 12 months; presumption can be rebutted with sworn affidavits

• Establishes $100,000 annual gross revenue threshold below which dealers without physical presence are exempt from collection requirements, unless activities are significantly associated with establishing/maintaining market

• Takes effect July 1, 2013, except communications services tax rate changes effective January 1, 2014