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Tired of Renewing Your Florida Resale Licenses? My Wish List...

author photo of Silvia Aguirre

Another January has arrived which means another round of renewing everyone’s Florida resale licenses. Florida, unlike most states, doesn’t allow resellers the opportunity to complete blank sales tax exemption forms. The state issues brand new resale licenses, each and every year. I know Florida wants to closely monitor who gets to purchase sales tax exempt, but at this time of year there are always so many important things that have our attention. It never feels like soliciting my customers for a copy of their newly-printed license is the best use of anyone’s time.

Could there be hope? The question being kicked around our offices is will 2012 be the year that Florida finally ditches their old format and joins SST? Florida claims their goal is to be revenue neutral through the decrease in property taxes which pay for schools and the increase in sales taxes. The first thing that jumps to mind is a percentage increase when you hear “sales tax increase,” but Florida is saying that tax rates will remain the same. There is no efficient way for Florida to collect sales tax on internet purchases at this time, but the state is hoping to quickly tap into that river of cash and the fastest path to that appears to be joining SST.

I have no idea if what they’re proposing will create a revenue neutral situation. All I can focus on is the chance that I can use the SST form for Florida in future years. SST certificates do not expire as long as the buyer and seller maintain an ongoing sales relationship, defined as new sales at least once a year. Wouldn’t it be great to get a certificate for a customer and be done with it, forever?

Another aspect is how it effects the online collection of exemption certificates in ecommerce. Currently, the CertCapture exemption certificate management software has to send a sad little message to the buyer that they cannot fill out the form online through the web portal or as part of their shopping cart checkout process. They must upload a copy of the Florida resale license which hopefully the buyer scanned into his computer before he began the purchase process. If Florida jumps on the SST bandwagon, buyers can join the rest of the logical world and fill out their information online, right in the shopping cart process.

What’s next? Maybe Florida will allow the use of the MTC form without the license as support. It’s on my wish list. (What's on yours?)

Note: Silvia Aguirre is no longer accepting new comments nor questions. More recent "Exemption Certificate Mgmt" posts by Michael Fleming (of Peisner Johnson) are still active. Also use the Site's SEARCH bar to locate other helpful information.

Other recent “Exemption Certificate Mgmt.” posts by Silvia Aguirre:

NOTE: All blog content, comments, and participation subject to disclaimer at bottom of page.

Comments

Note: Silvia Aguirre is no longer accepting new comments or questions.  More recent "Exemption Certificate Mgmt" posts by Michael Fleming (of Peisner Johnson) are still active.  Also use the Site's SEARCH bar to locate other helpful information.

7 Responses to Tired of Renewing Your Florida Resale Licenses? My Wish List...

  • Posted by Marisol on August 27, 2014 12:53am:

    Silvia, what about other States resale certificates. What if we have a resale certificate on hand but the license or tax id number is not current? Manage each client's license expiration date would be so hard.

    • Posted by Author photo of Susan JaegerSusan Jaeger on December 5, 2014 7:14am:

      Marisol - apologies for the slow response. While Silvia Aguirre’s very helpful Exemption Certificate blog information is still available – she is no longer posting new items or responding to new comments or questions.
      However – some good news… Andy Johnson and Michael Fleming of Peisner Johnson & Company have taken over the Exemption Certificate blogging activity. If you would like to post an Exemptions Certificate related question – feel free to submit through the comment section in the newest/latest post(s) listed on this linked page.
      http://www.salestaxsupport.com/blogs/sales-use-tax/author/mikefleming/
      Thanks!
      SalesTaxSupport.com

  • Posted by Peter on January 25, 2012 10:19pm:

    It is my understanding that if you have an ongoing business relationship with the customer, you are not required to get a new resale certificate every year. After they came up with the Annual Resale Certificate system, the FL DOR posted somehing to that effect on their website.

    • Posted by Author photo of Silvia AguirreSilvia Aguirre on February 9, 2012 4:27am:

      This is similar to the SST requirements. The SST states seem to be more understand in this regard. Most of the time a FL auditor will ask you to prove the relationship rather than take your word. It just comes down to which is easier - proving the continued relationship or acquiring a new form.

  • Posted by Kris on January 25, 2012 3:13am:

    Did you know you can renew them electronically from Florida's website?

    • Posted by Author photo of Silvia AguirreSilvia Aguirre on February 9, 2012 4:25am:

      This can still be a time consuming process of compiling a file that contains every FL reseller license on it. One typo and you are back to the beginning of the process.

  • Posted by Brad on January 24, 2012 6:43am:

    That would be nice. The last firm I worked with/for that had Florida licensing obligations had over 60 locations. That was April 2010, I am sure that they have added some since then. The company has added over 100 locations since then nationwide.

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