The government watchdog group Florida TaxWatch says internet sales are turning law-abiding citizens into tax cheats.
There was a lot of hype surrounding Cyber Monday this year. Online spending rose 17 percent. In addition to the ease of purchasing online, many buyers factor in sales tax savings. In Florida it’s six percent.
But, Florida TaxWatch General Counsel Robert Weissert says current statutes require consumers to make quarterly sales tax payments on online and mail order purchases to the Florida Department of Revenue. But he admits, compliance is extremely low.
“When we speak to groups and ask people in the room to hold their hand up if they’ve ever filed out one of these forms that are required four times a year the only people who raise their hands work for the Department of Revenue, the Florida legislature or Florida TaxWatch,” he said.
Weissert said experts estimate lost sales tax revenue from internet purchases in Florida is around $2 billion dollars year. And he said, in Florida that’s a big hit.
“Most states, about 40 states, use a combination of sales tax and income tax for their revenue. Florida does not have an income tax so we rely disproportionately on the sales tax,” he said. “Around two-thirds of our total revenue comes from sales tax, so this issue does affect Florida more than others.”
Florida’s lawmakers crafted a $70 billion budget in 2012. Weissert said when the legislature convenes in March, TaxWatch representatives will be there as well, lobbying lawmakers to work out a viable method of collection sales tax from on-line sales.
