Discussion Forum: Thread 316485

 Author: cosmicray View Messages Posted By cosmicray
 Posted: Jan 30, 2022 11:07
 Subject: Freight Forwarders and sales tax
 Viewed: 95 times
 Topic: Suggestions
 Status:Open
 Vote:[Yes|No]
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cosmicray (3492)

Location:  USA, Florida
Member Since Contact Type Status Collage
Oct 1, 2000 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
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Store: Cosmic Toys
Up until now, pretty much all the freight forwarders have operated in states
that have no sales tax. This has allowed them to operate outside of the normal
rules. That is changing.

Last November, the Florida legislature enacted a new statute ( Section 212.06(5)(b)
) allowing freight forwarders, operating as a business within Florida, and with
the explicit requirement that the items being forwarded be leaving the USA, to
register with the State of Florida Department of Revenue ( using an Application
for a Florida Certificate of Forwarding Agent Address (Form DR-1FA) ). Florida
is legitimizing the business, and basically neutralizing the zero tax states
advantage.

This impacts BrickLink in two ways: first, BL's tax calculation system (or
service provider) will need to track these addresses, and second anyone with
a shipment to one of these addresses in Florida should (if properly implemented)
see a zero sales tax rate.

I am requesting that those (known and registered) addresses of freight forwarders
(regardless of state) be tagged and signaled so that seller's can choose
if they wish to ship to them or not.

Note that part of this issue (the sales tax rate being other than what is expected
for the state in question) also applies to some Native American reservations
(as I mentioned in another thread earlier today).

With Florida's aggressive move, I expect other states (and primarily those
with significant air freight connections) to implement similar statutes.

Nita Rae