There’s a new Florida law that was passed as Senate Bill 2514, which will decrease the amount of income that is exempt from taxes. The purpose of this law is to implement legislative changes and other updates to a form within Rule 12B-6.005, Payment of Tax. This states that taxpayers are required to electronically file returns and remit payments of taxes and fees where the taxpayer paid $20,000 or more in the year prior. Although, the new law has different rules and will go into effect on January 1st, 2023.
What is Senate Bill 2514 of 2022?
Senate Bill 2514 of the Florida state legislature allows taxpayers to file electronically by authorizing the Florida Department of Revenue to lower the payment threshold from $20,000 to $5,000. As a result, the Gross Receipts Tax Return Form is revised to inform taxpayers of their requirement to file the return and pay the taxes they potentially owe if they paid $5,000 or more in gross receipts tax.
Who is affected by the Gross Receipts Tax?
The Gross Receipts Tax is often considered one of the most economically damaging taxes, and it is a tax applied to the gross sales of a business or company, without subtracting any costs or expenses. For example, the use of a patent, copyright, trademark, franchise, or license is considered a gross receipt for a business in Texas. Currently, Nevada, Ohio, Texas, Oregon, Delaware, Tennessee, and Washington impose gross receipts taxes. Gross receipts taxes impact businesses with low profit margins and high production volumes, like start-ups and entrepreneurs.
Why is Senate Bill 2514 a needed change?
Senate Bill 2514’s lowering of the tax payment threshold for electronic filing is meant to create more operational efficiency and reduce costs by limiting the number of paper returns and checks received. To read more about this new law, go to https://floridarevenue.com/rules/Pages/12B-6_0722.aspx.