How to Figure Out Sales Tax for a Small Business in Florida

The sales tax rate charged by small businesses in Florida varies by county.

Sales tax amounts are determined by a few different entities. First, there is the state, which sets the general amount for sales taxes. Next, sometimes cities and counties add a percentage to all sales taxes for items or services purchased within their borders. In the state of Florida, the state sales tax rate is 6 percent. Many of Florida's counties add either a half percent, 1 percent or 1.5 percent discretionary sales tax.

Things You'll Need

• Florida State Form DR-15
• Florida State Form DR-15DSS

Instructions

1. Read the Florida Department of Revenue sales taxes information. You will have to determine what part of the items or services you provide are considered taxable by the state of Florida. Typically, items found in a retail store are considered taxable. A complete list of exempt items is found at the Florida Department of Revenue website, but the list includes unprepared food items, water and Bibles. Services are not taxable in Florida unless the service results in a substantial alteration to a person's property. If a single sale involves both items and services, the items should be taxed separately from the services. A business owner should contact the FDOR to inquire about its particular type of business.

2. Add appropriate discretionary sales surtaxes. Using the DR-15DSS, find the percentage of the counties' discretionary surtax. Determine which county's tax to use. In Florida, if an item is purchased in one county the rate to use is that particular county's rate. If the item is delivered to another county, the tax is paid based on the rate for the county the item is delivered to. The same rule goes for services provided that are taxable. Add the rate of the discretionary sales surtax to the state tax rate of 6 percent.

3. Adjust sales taxes owed for big ticket items. In the Florida, the discretionary sales surtax only applies to the first $5,000 of the sales amount on the sale. For example, in Osceola County, the discretionary sales surtax is 1 percent. If a person purchases a $10,000 item, the state sales tax equals $600. The Osceola County surtax would only be on the first $5,000 of that $10,000. So the surtax would equal $50. The total would be $650 for sales taxes owed.

4. Account for exempt sales. The form DR-15 is used to report the sales made each month and the taxes owed each month. During the year, the sales made by a business must be separated by both exempt and taxable sales. Doing so is important so that the business doesn't end up paying taxes on the gross sales alone. The amounts for exempt sales are subtracted from the amounts for the gross sales, leaving the taxable amount. It is on this amount that taxes are calculated and collected. From the total amount of taxes collected, the lawful deductions are subtracted. Lawful deductions include the taxes refunded to customers for returned goods, or any other deductions allowed by law.

References

• Florida Department of Revenue: Sales and Use Tax Return
• Florida Department of Revenue: Discretionary Sales Surtax
• Florida Department of Revenue: Discretionary Sales Surtax Information Form DR-15DSS
• Florida Department of Revenue: Florida's Sales and Use Tax
• Florida Department of Revenue: How to Calculate, Collect and Report Your Discretionary Sales Surtax