Lawmakers want to end permanent tax holiday on internet sales in Florida

TAMPA - Billions of dollars in sales go untaxed in Florida every year because of what some say are outdated laws.  Currently, out of state retailers like Amazon.com are not required to collect the six percent sales tax  that brick and mortar stores must.

Politicians and business interests talk about plugging this loophole every year. But this year, it just must might happen.  

Downtown Tampa bicycle store owner Kellie Cyr has to collect sales tax for every bike sold and turn it over to the state.  Many of her out-of-state competitors are free of that burden.
 
"Why are they any different than us? I don't understand that," said Cyr.

Cyr says people come into her store, scan products with their smart phones right on her shelves and look for a lower price online.  She is at an automatic 7% disadvantage in Hillsborough County.

"Sometimes we just go ahead and add the additional discount to be able to keep them in the store," said Cyr.

A bill introduced into the State Senate this session tries to level the playing field between tiny City Bike in  Tampa and giant Amazon.com in Seattle, Washington. 

Major business interests including the Chamber of Commerce support closing the internet tax loophole.  By some estimates, the state loses out on nearly a billion dollars in tax revenue.

Rick McAllister of the Florida Retail Federation says the law is long overdue.

"It's not a new tax. It's collecting an existing tax and it's something we've got to get done."

The opposition is muted, but powerful.  No republican politician, including Rick Scott  wants to be accused in the next election  of raising taxes. That's why the bill specifies a tax holiday or outright cut to compensate for every additional dollar collected from out state retailers.   
 
State law already requires Florida residents to pay sales tax on internet purchases from out of state companies voluntarily.  The Department of Revenue reports $9.1 million in receipts in the last full tax year remitted from a few thousand people.   That's roughly one percent of what could be collected through the retailers.