Florida & Kansas Enact Laws Requiring Some Remote Sellers to Collect Sales Tax Beginning July 1, 2021

Florida: Under a new law, Chapter 2021-2, Laws of Florida, businesses that have no physical presence in the state, including wineries making direct-to-consumer shipments, must register with the Department of Revenue to collect and remit sales tax. Registration is required if businesses had over $100,000 in taxable retail sales of tangible personal property to Florida consumers during the previous calendar year. The new law takes effect July 1, 2021 and requires out-of-state businesses that meet or exceed the sales tax remittance requirements to register with the Department to collect, report and pay sales tax by Sept. 30, 2021. In addition to the 6% state sales tax rate, businesses with a sales tax liability must collect a discretionary sales surtax of up to 2% on sales shipped into a county where a surtax is levied. Prior to this change, only wineries with a physical presence in the state were required to collect and remit sales tax on DTC sales shipped into Florida. All wineries that ship DTC sales into the state are still required to remit Florida excise taxes and file monthly direct shipment reports with the Florida Department of Business & Professional Regulation regardless of physical presence or economic nexus.

Kansas: Effective July 1, 2021, any out-of-state retailer that had in excess of $100,000 of cumulative gross receipts from sales to customers in Kansas during the current or immediately preceding year is considered, for sales tax purposes, to have economic nexus in Kansas. When a California winery applies for a Special Order shipper license, they agree to collect and remit liquor enforcement tax and pay gallonage tax. The 8% liquor enforcement tax is an in-lieu-of sales tax imposed on the retail price of wine sales shipped directly to consumers in Kansas.  Therefore, under the new law, a California winery that exceeds the $100,000 sales threshold would only be required to collect sales tax on non-wine merchandise sold to a Kansas resident. More information about the requirements for making DTC shipments into Florida and Kansas is available on Wine Institute’s website. Questions should be directed to the State Relations Department.