Sales Tax Holiday for Hurricane Supplies is June 1st – 7th

If your business sells items like batteries, flashlights, generators, or coolers, you need to be aware of the upcoming Disaster Preparedness Sales Tax Holiday.  For the first week in June 2018, certain items will be exempt from the state sales tax if they meet certain price restrictions.

All day June 1st through June 7th, the sale of the following items will be exempt from the state sales tax:

Selling for $10 or less:

  • Reusable ice packs

Selling for $20 or less:

  • Any portable self-powered light source (powered by battery, solar, hand-crank or gas), such as flashlights, lanterns and candles

Selling for $25 or less:

  • Any gas or diesel fuel container, including LP gas and kerosene containers

Selling for $30 or less:

  • Batteries (excluding car and boat batteries), including rechargeable batteries (sizes AA-cell, C-cell, D-cell, 6-volt, and 9-volt)
  • Coolers and ice chests (food storage; nonelectrical)

Selling for $50 or less:

  • Bungee cords
  • Ground anchor systems
  • Two-way and weather band radios, whether powered by batteries, solar or hand-crank
  • Tarps
  • Tie-down kits and ground anchor systems
  • Visqueen, plastic sheeting, drop cloths, and other flexible waterproof sheeting

Selling for $750 or less:

  • Portable generators used to provide light or communications, or to preserve food in the event of a power outage

First-aid kits (always exempt)

The Florida Department of Revenue has published a Taxpayer Information Publication that contains the above list and answers commonly-asked questions about this tax-free holiday.  You can download a copy by clicking here.  If you have questions, you can call the Department of Revenue’s toll-free Taxpayer Services line at 800-352-3671.

Workers’ Compensation Rates Decrease Starting June 1, 2018

The Florida Office of Insurance Regulation has approved a decrease of -1.8% in the rates Florida businesses pay for workers’ compensation insurance.  The decrease is a result of the effects of the Federal Tax Cuts and Jobs Act, which became law in December 2017 and decreased the corporate income tax rate.

Your company’s workers’ compensation premium is determined by multiplying your total payroll by the rate for the class codes assigned to your business based on the work you do.

The -1.8% rate decrease will apply to new workers’ compensation policies issued starting June 1, 2018.  If you already have a workers’ compensation policy, the rate decrease will be applied to your policy when it renews on or after June 1st.  If you have any questions about the rate decrease and how it affects your workers’ compensation policy, you should contact your local insurance agent or your workers’ compensation insurance company.

Free Webinar from the Florida Department of Revenue

Are you familiar with the Florida use tax?  The use tax is similar to the Florida sales tax, but it is less widely known.  The Florida use tax is due on the use or consumption of taxable goods or services if sales tax was not paid at the time of purchase. For example:

  • If you buy a taxable item in Florida and did not pay sales tax, you owe use tax.
  • If you buy an item tax exempt intending to resell it, and then use the item in your business or for personal use, you owe use tax.
  • If you buy a taxable item outside Florida and bring it into (or have it delivered into) Florida, and you did not pay sales tax on the item, you owe use tax.

As a service to Florida businesses, the Florida Department of Revenue is hosting a free webinar for businesses titled “Use Tax and You:  What Businesses Should Know about Florida’s Most Misunderstood Tax.”

The webinar is Thursday, July 12, 2018 from 2:00 to 3:00 pm (Eastern Daylight Time).

During this webinar, businesses will learn:

  • The definition of Florida’s use tax
  • How it differs from Florida’s sales tax
  • Examples for how and when it applies to your business
  • When it is due and why
  • Why is it often discovered when a business gets audited by the Department of Revenue

To participate in the webinar, you will need access to a computer so you can view the presentation.  To register, please visit the Department of Revenue’s website by clicking here.

Businesses can also access past webinars from the Department of Revenue’s website:

  • Sales Tax Tales:  Fact vs. Fiction, which explains about Florida’s sales and use tax laws, resale certificates, and website resources.
  • Florida Reemployment Tax Basics – Foundation for Your Success, in which explains reemployment tax requirements and responsibilities, how to file and pay this tax electronically, and records that businesses are required to keep.
  • Florida Sales and Use Tax Basics – Foundation for Your Success, which explains the basics of the Florida sales and use tax laws and requirements for businesses.

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