Florida Passes Marketplace Facilitator Sales Tax Law: Action Required for Nonprofits and Events Charging for Spectators

IMPORTANT: Action Required for Nonprofits and for Events Charging for Spectators

Recently Florida joined most other states that charge sales tax and passed a Marketplace Facilitator Law. Marketplace Facilitator laws shift the responsibility from Marketplace Sellers (Event Organizers) to Marketplace Facilitators like GiveSignup | RunSignup to collect and remit sales tax on behalf of Marketplace sellers. Florida’s law took  effect on July 1, 2021. 

Our research indicates that race registrations and merchandise sold on the GiveSignup | RunSignup site for races held in Florida or for merchandise delivered to Florida are subject to sales tax with  a few exceptions. Florida Rule 12A-1.005(2)(i) allows for race fees to not be taxed if the event charges a taxable admission fee to spectators. Florida also allows an exemption for race fees and tickets sold by charitable and religious organizations. Fortunately GiveSignup | RunSignup is ready to handle this responsibility on your behalf and also offers options that allow you to claim any exemptions that you are entitled to. 

GiveSignup | RunSignup will begin collecting and remitting sales tax on your behalf effective at 11:59pm on July 15th. If you are eligible for an exemption you will need to update your race to claim the exemption by following these steps (we are not permitted to do this for you):

On the Race Dashboard navigate to Financial >> Sales Tax >> Sales Tax Setup.

Review the General Sales Tax Exemptions for your race and enable them if applicable.

Nonprofits may have additional exemptions they may qualify for based on the type of nonprofit organization. Choose the Exemption Reason and enable the exemption if applicable.

At the bottom of the page it will ask for your signature and to confirm you have the authority to make such certifications on behalf of the organization.

Don’t forget to review the taxable items by going to Financial >> Sales Tax >> Taxable Items in order to properly categorize any items that may be for sale so appropriate tax is collected as well. 

Note that participants will be responsible for paying the sales tax.  If you are eligible for an exclusion and do not make this election, we are not able to recover money from the state to process refunds to participants without refunding the entire transaction

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