Florida Senate - 2025                                     SB 624
       
       
        
       By Senator Rodriguez
       
       
       
       
       
       40-00750A-25                                           2025624__
    1                        A bill to be entitled                      
    2         An act relating to forwarding agents; amending s.
    3         212.06, F.S.; defining the term “electronic database”;
    4         providing that an applicant may not be required to
    5         submit an application to register as a dealer under
    6         certain circumstances; requiring the forwarding agent
    7         to surrender its certificate to the Department of
    8         Revenue under certain circumstances; requiring the
    9         department to report the state sales tax rate and
   10         discretionary sales surtax rate in a specified system
   11         as zero under certain circumstances; providing
   12         applicability; prohibiting certain dealers from
   13         collecting certain taxes under certain circumstances;
   14         revising the liability of a dealer under certain
   15         circumstances; providing an effective date.
   16          
   17  Be It Enacted by the Legislature of the State of Florida:
   18  
   19         Section 1. Paragraph (b) of subsection (5) of section
   20  212.06, Florida Statutes, is amended to read:
   21         212.06 Sales, storage, use tax; collectible from dealers;
   22  “dealer” defined; dealers to collect from purchasers;
   23  legislative intent as to scope of tax.—
   24         (5)
   25         (b)1. As used in this subsection, the term:
   26         a. “Certificate” means a Florida Certificate of Forwarding
   27  Agent Address.
   28         b.“Electronic database” means the database created and
   29  maintained by the department pursuant to s. 202.22(2).
   30         c.b. “Facilitating” means preparation for or arranging for
   31  export.
   32         d.c. “Forwarding agent” means a person or business whose
   33  principal business activity is facilitating for compensation the
   34  export of property owned by other persons.
   35         e.d. “NAICS” means those classifications contained in the
   36  North American Industry Classification System as published in
   37  2007 by the Office of Management and Budget, Executive Office of
   38  the President.
   39         f.e. “Principal business activity” means the activity from
   40  which the person or business derives the highest percentage of
   41  its total receipts.
   42         2. A forwarding agent engaged in international export may
   43  apply to the department for a certificate.
   44         3. Each application must include all of the following:
   45         a. The designation of an address for the forwarding agent.
   46         b. A certification that:
   47         (I) The tangible personal property delivered to the
   48  designated address for export originates with a United States
   49  vendor;
   50         (II) The tangible personal property delivered to the
   51  designated address for export is irrevocably committed to export
   52  out of the United States through a continuous and unbroken
   53  exportation process; and
   54         (III) The designated address is used exclusively by the
   55  forwarding agent for such export.
   56         c. A copy of the forwarding agent’s last filed federal
   57  income tax return showing the entity’s principal business
   58  activity classified under NAICS code 488510, except as provided
   59  under subparagraph 4. or subparagraph 5.
   60         d. A statement of the total revenues of the forwarding
   61  agent.
   62         e. A statement of the amount of revenues associated with
   63  international export of the forwarding agent.
   64         f. A description of all business activity that occurs at
   65  the designated address.
   66         g. The name and contact information of a designated contact
   67  person of the forwarding agent.
   68         h. The forwarding agent’s website address.
   69         i. Any additional information the department requires by
   70  rule to demonstrate eligibility for the certificate.
   71         j.and A signature attesting to the validity of the
   72  information provided.
   73         4. An applicant that has not filed a federal return for the
   74  preceding tax year under NAICS code 488510 shall provide all of
   75  the following:
   76         a. A statement of estimated total revenues.
   77         b. A statement of estimated revenues associated with
   78  international export.
   79         c. The NAICS code under which the forwarding agent intends
   80  to file a federal return.
   81         5. If an applicant does not file a federal return
   82  identifying a NAICS code, the applicant must shall provide
   83  documentation to support that its principal business activity is
   84  that of a forwarding agent and that the applicant is otherwise
   85  eligible for the certificate.
   86         6. A forwarding agent that applies for and receives a
   87  certificate shall register as a dealer with the department. An
   88  applicant is not required to submit an application to register
   89  as a dealer when application is made for a certificate, or
   90  renewal of a certificate, if the applicant is already registered
   91  as a dealer with the department.
   92         7. A forwarding agent must shall remit the tax imposed
   93  under this chapter on any tangible personal property shipped to
   94  the certified designated forwarding agent address if no tax was
   95  collected and the tangible personal property remained in this
   96  state or if delivery to the purchaser or purchaser’s
   97  representative occurs in this state. This subparagraph does not
   98  prohibit the forwarding agent from collecting such tax from the
   99  consumer of the tangible personal property.
  100         8. A forwarding agent shall maintain the following records:
  101         a. Copies of sales invoices or receipts between the vendor
  102  and the consumer when provided by the vendor to the forwarding
  103  agent. If sales invoices or receipts are not provided to the
  104  forwarding agent, the forwarding agent must maintain export
  105  documentation evidencing the value of the purchase consistent
  106  with the federal Export Administration Regulations, 15 C.F.R.
  107  parts 730-774.
  108         b. Copies of federal returns evidencing the forwarding
  109  agent’s NAICS principal business activity code.
  110         c. Copies of invoices or other documentation evidencing
  111  shipment to the forwarding agent.
  112         d. Invoices between the forwarding agent and the consumer
  113  or other documentation evidencing the ship-to destination
  114  outside the United States.
  115         e. Invoices for foreign postal or transportation services.
  116         f. Bills of lading.
  117         g. Any other export documentation.
  118  
  119  Such records must be kept in an electronic format and made
  120  available for the department’s review pursuant to subparagraph
  121  9. and ss. 212.13 and 213.35.
  122         9. Each certificate expires 5 years after the date of
  123  issuance, except as specified in this subparagraph.
  124         a. At least 30 days before expiration, a new application
  125  must be submitted to renew the certificate, and the application
  126  must contain the information required in subparagraph 3. Upon
  127  application for renewal, the certificate is subject to the
  128  review and reissuance procedures prescribed by this chapter and
  129  department rule.
  130         b. Each forwarding agent shall update its application
  131  information annually or within 30 days after any material
  132  change.
  133         c. The department shall verify that the forwarding agent is
  134  actively engaged in facilitating the international export of
  135  tangible personal property.
  136         d. The department may suspend or revoke the certificate of
  137  any forwarding agent that fails to respond within 30 days to a
  138  written request for information regarding its business
  139  transactions.
  140         e.Each forwarding agent shall surrender its certificate to
  141  the department if:
  142         (I)The forwarding agent has ceased to do business;
  143         (II)The forwarding agent has changed addresses;
  144         (III)The forwarding agent’s principal business activity
  145  has changed to something other than facilitating the
  146  international export of property owned by other persons; or
  147         (IV)The certified address is not used for export under
  148  this paragraph.
  149         10.a. The department shall provide a list on the
  150  department’s website of forwarding agents that have applied for
  151  and received a Florida Certificate of Forwarding Agent Address
  152  from the department. The list must include a forwarding agent’s
  153  entity name, address, and expiration date as provided on the
  154  Florida Certificate of Forwarding Agent Address.
  155         b.For any certified address with a special five-digit zip
  156  code provided by the United States Postal Service, the
  157  department shall report the state sales tax rate and
  158  discretionary sales surtax rate in the department’s Tax and
  159  Address Lookup System as zero. This sub-subparagraph does not
  160  apply to a certified address with a special five-digit zip code
  161  provided by the United States Postal Service if that address
  162  includes a suite address or secondary address.
  163         11. A dealer, other than a forwarding agent that is
  164  required to remit tax pursuant to subparagraph 7., may not
  165  collect the tax imposed under this chapter on tangible personal
  166  property shipped to a certified address listed may accept a copy
  167  of the forwarding agent’s certificate or rely on the list of
  168  forwarding agents’ names and addresses on the department’s
  169  website in lieu of collecting the tax imposed under this chapter
  170  when the property is required by terms of the sale to be shipped
  171  to the designated address on the certificate. A dealer who
  172  accepts a valid copy of a certificate or who relies on the list
  173  of forwarding agents’ names and addresses on the department’s
  174  website or the electronic database and who in good faith and
  175  ships purchased tangible personal property to a certified the
  176  address on the certificate is not liable for any tax due on
  177  sales made during the effective dates indicated on the
  178  certificate.
  179         12. The department may revoke a forwarding agent’s
  180  certificate for noncompliance with this paragraph. Any person
  181  found to fraudulently use the address on the certificate for the
  182  purpose of evading tax is subject to the penalties provided in
  183  s. 212.085.
  184         13. The department may adopt rules to administer this
  185  paragraph, including, but not limited to, rules relating to
  186  procedures, application and eligibility requirements, and forms.
  187         Section 2. This act shall take effect upon becoming a law.