FL H0217

Authorizes Florida's participation in the Streamlined Sales and Use Tax Agreement, allowing the executive director to enter the agreement and establishing a central electronic registration system through which sellers agree to collect and remit sales tax for all member states; defines three seller models (Models 1, 2, and 3) with varying levels of certified service provider involvement and corresponding liability frameworks.

Establishes a standardized sourcing hierarchy for determining where taxable transactions occur: (1) seller's business location where product is received, (2) delivery location, (3) purchaser address from business records, (4) purchaser address obtained during sale, and (5) origin-based sourcing as a fallback; includes special sourcing rules for motor vehicles, aircraft, boats, admissions, real property, transient rentals, transportation equipment, and direct mail.

Replaces the existing tax bracket system with a simplified computation method allowing sellers to calculate tax on a per-item or invoice basis, carrying the computation to the third decimal place and rounding up if the third decimal exceeds four; repeals detailed bracket schedules for the 6% state rate and discretionary surtax rates.

Modernizes definitions throughout Chapter 212, adding terms for bundled transactions, computer software, prewritten computer software, products transferred electronically, delivery charges, digital goods, direct mail, and certified service providers; explicitly excludes electronically transferred products from "tangible personal property."

Revises food and medical exemptions to adopt standardized Streamlined Agreement definitions: redefines exempt "food and food ingredients" (replacing "food products"), and creates new defined categories for candy, soft drinks, dietary supplements, prepared food, drugs, over-the-counter drugs, durable medical equipment, mobility-enhancing equipment, prosthetic devices, and grooming/hygiene products (not exempt).

Limits the $5,000 discretionary sales surtax cap to motor vehicles, aircraft, boats, and manufactured/modular/mobile homes only (previously applied to all tangible personal property); shifts surtax adoption/repeal effective dates from January 1 to April 1 with an October 20 notification deadline and department notice to sellers by February 1.

Requires the department to maintain taxing jurisdiction databases (boundary changes, tax rates, zip code assignments) and a downloadable taxability matrix; provides safe harbor protections for sellers, certified service providers, and purchasers who rely in good faith on erroneous state-provided data, shielding them from tax, interest, and penalties.

Creates a sales/use tax amnesty program for sellers who register under the Agreement within 12 months of Florida's participation, provided they were not registered in the prior 12 months, have no pending audits, and maintain registration and tax payment for at least 36 months; amnesty does not cover fraud, taxes already collected, or the seller's obligations as a buyer.

Restricts sales and use tax rate changes to take effect only on January 1, April 1, July 1, or October 1, with the department required to provide 60 days' notice to sellers; sellers are not liable for collecting at a prior rate if a new rate takes effect within 30 days and the failure does not extend beyond 30 days.

Repeals s. 212.0596 (mail order sales provisions), removes related mail-order references throughout the code, grants the department emergency rulemaking authority for six months to implement the act, and urges Congress to consider protections for small businesses from added collection burdens; effective date is January 1, 2015.