Florida Department of Revenue Offers Sales Tax and Property Tax Relief

The Florida Department of Revenue has granted relief to certain adversely affected taxpayers suffering from business interruptions caused by COVID-19.  This relief extends the deadlines for reporting and remitting property tax and sales and use tax for affected taxpayers.

Florida property tax assessments for the 2019 tax year are generally due on March 31, 2020.  The Florida Department of Revenue has applied an extension to all 67 counties in Florida, pushing the due date on property taxes back to April 15, 2020, for all taxpayers, regardless of whether the extent a taxpayer’s ability to pay has been affected by COVID-19.

The Florida Department of Revenue has also provided an extension for businesses to remit sales and use taxes to the state and file related tax returns, but this extension only applies to certain Adversely Affected Taxpayers rather than any taxpayer collecting sales and use tax.  To be treated as an Adversely Affected Taxpayer and qualify for the sales and use tax deadline extensions, a taxpayer’s business must experience one of the following:

• The business closed in compliance with a state or local government order and had no taxable sales transactions as a result; or
• The business experienced sales tax collections in March 2020 that are less than 75% of March 2019 sales tax collections; or
• The business was established after March 2019; or
• The business is registered with the Department to file quarterly.

Florida’s sales and use tax is the state’s largest source of revenue, producing over $26 billion annually for the state.  Sales and use tax, along with other related tax returns and payments, are generally due on the first day of the month following the month of collection and are considered late if filed after the 20th day of the month.  The Florida Department of Revenue has extended this due date to April 30, 2020, for sales tax collected in March for Adversely Affected Taxpayers.  Taxpayers who do not fall within the definition of Adversely Affected Taxpayer must still follow the normal due date of April 20, 2020.

For businesses unable to meet their March 20 deadline for collections of February sales and use tax, the Florida Department of Revenue has waived penalty and interest on late payments if the taxes are reported and paid by March 31, 2020.

The Florida Department of Revenue’s emergency order extending the property tax filing and payment deadline is available on the Department’s website.

The Florida Department of Revenue’s emergency order extending the sales and use tax filing and remittance deadline is also available on the Department’s website.

Williams Parker’s COVID-19 response team is continuing to monitor these and other developments and advise on issues arising from the Coronavirus. 

Jamie E. Koepsel
jkoepsel@williamsparker.com
941-552-2562