Table of Contents
Letter from the President 1
FRF “Advocacy, Intervention and Political Team” / Contact Information 2
FRF GENERAL PHARMACY COUNCIL
Destination Casinos ......................................................................................................... 3 Expanded Vaccination Authority For Pharmacists .............................. 9
Wage Theft Preemption ............................................................................................... 3 90 Day Supply Of Prescription Medications At Retail ....................... 9
Truth In Damages ............................................................................................................... 3 State Regulation Of Pharmacies And Pharmacists ........................... 10
Pre-Employment Background Screenings ................................................... 4 Medicaid Provider Handbook.................................................................................. 10
Debit And Credit Card Fees ....................................................................................... 4
State Court System Funding ................................................................................... 4 SUSTAINABILITY COUNCIL
Illegal Immigration.............................................................................................................. 4 Bottle Deposit Legislation ........................................................................................ 10
Drug Repackaging Workers’ Compensation Loophole ....................... 5 Renewable Energy Legislation ............................................................................ 10
LOSS PREVENTION COUNCIL RETAIL BEVERAGE COUNCIL
Organized Retail Crime .................................................................................................. 5 Dram Shop Preservation .............................................................................................11
Pool Buying ..............................................................................................................................11
TAXES Non-Active Quota Beverage Licenses .............................................................11
Back-To-School Sales Tax Holiday ...................................................................... 6 Mandatory Licensee Training ............................................................................... 12
Internet Sales/Use Tax Collection ....................................................................... 6
Streamlined Sales Tax ....................................................................................................7 BEAUTY INDUSTRY COUNCIL
Unemployment Compensation Reform ............................................................7 Equitable Enforcement of
Retention Of Sales Tax Collection Allowance ............................................ 8 Cosmetology Rules And Standards ..................................................... 12
Regulation of The Cosmetology Industry .................................................... 12
SMALL BUSINESS COUNCIL
Emergency Declarations ............................................................................................. 8 GROCERY COUNCIL
Moratorium On Impact Fees ..................................................................................... 8 State or Local Mandated Nutritional Labeling ........................................ 12
Delinquency Fee Increase ........................................................................................... 8
Credit Card Transaction /Interchange Fees ............................................... 9
Florida Retail Federation Contract Lobbyists 13
2012 Board of Directors 13
Pro-Growth Tax Reform 14
The Florida Retail Federation’s mission is to advocate, promote, and safeguard retailing.
The Florida Retail Federation is the statewide trade association representing Florida’s second largest employment industry. Florida
retailers pay more than $49 billion in wages annually, provide one out of every five jobs in the state, and collect and remit more than
$20 billion in sales and retail-related taxes for Florida’s government each year. FRF has served as The Voice of Florida Retailing since
its establishment in 1937.
ON THE COVER
From top to bottom: (1) Speaker of the House Dean Cannon (R-Winter Park) and Senate President Mike
Haridopolos (R-Melbourne) brief FRF members on the 2011 Legislative Session during Retail Days at the Capitol
in February. (2) Governor Rick Scott. (3) Guest speaker Attorney General Pam Bondi addresses FRF members
during the Legislative Luncheon at the Hotel Duval in Tallahassee in February. (4) Sen. Don Gaetz (R-Destin), the
Senate President Designate, speaks to attendees during Retail Days at the Capitol in February.
As we look ahead to 2012, we are encouraged to see the state of
Florida continuing a steady trend of growth.
In the capital, a business-friendly governor, Cabinet and Leg-
Go to www.TeamRetail.org and enter your email
islature are promising to maintain their focus on improving Flor-
address to get regular updates from FRF on the
ida’s economic climate. Republican majorities in Tallahassee issues that will affect your business in 2012.
will continue to give us a favorable political climate in 2012, but
we will still face challenges in advancing the agenda of Florida
As we do every year, the FRF team will be actively advocating on behalf of the retail industry on dozens of issues –
some favorable to our businesses and some not.
When the Florida Legislature convenes on January 10, there are a few broad issues we think will be important in navi-
gating the legislative landscape in 2012:
The Florida Legislature’s first order of business will be the once-a-decade process of redistricting – drawing new polit-
ical boundaries for the state Legislature and Florida’s congressional districts. Regardless of how the Legislature draws the
new boundaries, Democrats and Republicans will take the fight to the courts, who we believe will ultimately determine
the new district lines. FRF will be monitoring this process closely to ensure we are prepared to communicate our agenda
to the candidates running in the new districts.
THE “JOB CREATORS CAUCUS”
During the Legislative Session, our No. 1 challenge will be helping our lawmakers understand the perspective of Flor-
ida’s businesses. Surprisingly, there are precious few actual business owners in the Legislature – people who know what
it’s like to make payroll every month and sign the checks on the front. This year, FRF is working to organize the Florida
employers who are serving in the Legislature into a “Job Creators Caucus,” encouraging them to educate and advocate to
their fellow lawmakers.
CONTROLLING COST INCREASES
While our economy continues to add jobs, Florida employers are facing a triple threat of cost increases in 2012. As re-
quired in the state constitution, starting January 1, 2012, the minimum wage in Florida will increase from $7.31 to $7.67
an hour - a nearly 5% increase. The Florida Office of Insurance Regulation has also approved an almost 9% increase in
workers’ compensation premiums for 2012. Finally, there will be a nearly $100 per employee increase in the current min-
imum rate of unemployment compensation taxes unless the Legislature takes action.
The rebound of our economy over the past two years is strong testimony to the resilience of our state’s businesses, and
the ability of the marketplace to create jobs. The massive tax and rate increases we are facing in 2012 can only limit that
job creation. If our state’s leaders are collectively willing to take on and solve the big problems, we can be confident we’ll
finish the year in better shape than we are beginning it.
On behalf of all of us here at the Florida Retail Federation, I’d like to thank you for being a part of Team Retail. We
consider it a privilege to serve as The Voice of Florida Retailing, and we look forward to continuing our work for you.
Yours in retailing,
Make a difference on issues that impact your business! Join the
Team Retail Action Network, FRF’s grassroots member network
designed to help retailers be active advocates at the state
and federal levels. Call FRF toll-free at 1.888.FL.RETAIL
(357.3824). For breaking news and updates throughout
Richard A. McAllister the session on issues important to Florida’s retail
President and CEO industry, we invite you to visit www.frf.org.
and Political –
“AIP” – Team
The Florida Retail Federation’s full-time
professional lobbying team is based in the
state capital year-round to represent the
interests of Florida’s retail industry. From
our state’s largest employers to the small-
est, businesses count on the FRF team
to advocate for them on dozens of issues
worth billions of dollars every year.
FRF “Team Retail” lobbyists include (top
Rick McAllister, president and CEO;
Sally West, director, government affairs;
John Rogers, senior vice president and
general counsel. Front row (from left):
Randy Miller, executive vice president;
and Samantha Hunter Padgett, deputy
general counsel, governmental affairs.
Sherry Whitney (front right) serves as the
legislative team administrator.
FACTS ABOUT FLORIDA RETAIL
Florida Retail Federation ■■ Florida retailers directly employ about 1.7 million Floridians, and support
227 South Adams Street more than 2.6 million total jobs in the state.
Tallahassee, FL 32301-1720
■■ Florida retailers pay more than $49 billion in wages annually.
TELEPHONE NUMBERS ■■ Florida retailers collect and remit more than $20 billion in sales and retail-
1.850.222.4082 related taxes for the state government.
Outside Tallahassee and
■■ Florida retailers own and operate more than 250,000 establishments
1.888.FL.RETAIL (357.3824) throughout the state.
■■ Retail is directly and indirectly responsible for 21 percent of Florida’s gross
FA X N U M B E R
WEB SITE Retail’s economic impact is felt throughout the Florida economy. A robust
www.frf.org retail marketplace benefits industries including real estate, construction,
manufacturing, distribution, shipping and transportation.
2 | FLORIDA RETAIL FEDERATION
FRF GENERAL Rep. Will Weatherford
(R-Wesley Chapel), the House
Speaker Designate, talks with
the FRF Board of Directors
DESTINATION CASINOS during Retail Days at the
Capitol in February 2011.
ISSUE: Should Florida expand its gambling offerings to in-
clude large destination casinos.
DISCUSSION: Legislation proposed in the 2012 session would
allow Florida to become home to up to three large destination ca-
sinos. Though it has been stated these destination casinos would
focus their marketing efforts on international visitors, there would
be a very real impact on Florida’s families and existing businesses.
Destination casinos would have a negative impact on Flor-
ida’s retail industry by reducing families’ disposable income
available for spending in Florida’s existing entertainment, retail,
and restaurant establishments. Money going into these casinos
means money coming out of existing Florida businesses. Desti-
nation casinos will also harm the family-friendly brand Florida
has worked so hard to create.
POSITION: Because of the potential negative impact on Flor-
ida’s existing businesses and family-friendly brand, the Florida
Retail Federation opposes destination casinos.
WAGE THEFT PREEMPTION
ISSUE: Should wage theft be addressed at the local level. POSITION: Wage theft regulation should fall under the pur-
DISCUSSION: Wage theft occurs when an employee is not view of state and federal laws. If additional regulation is deemed
paid the money due for the work he or she has done. Many dif- necessary, it should be thoroughly vetted and applied consistent-
ferent state and federal laws exist to insure employers treat em- ly throughout the state in the form of a state statute, not local
ployees fairly and pay the appropriate money due. These laws ordinances.
protect employees while also protecting the due process rights
of employers. Recently, there has been a movement at the coun- TRUTH IN DAMAGES
ty level to adopt additional laws and regulations to address the ISSUE: Should Florida’s tort laws reflect payment to a plain-
issue of wage theft. tiff for actual, true medical bills or should the practice of making
Though there has been no demonstration that the existing medical care claims based on inflated bills be continued.
state and federal laws are inadequate, one county has already DISCUSSION: Through complicated procedures in person-
passed an ordinance, and other counties are looking to follow. al damage suits, plaintiffs can claim and are awarded damag-
These wage theft ordinances establish an extra-judicial process, es based on inflated costs for procedures which are not based on
with little of the due process protections that exist in typical ju- the actual amount paid by the plaintiff or on the plaintiff’s be-
dicial and administrative proceedings. Employers may be sub- half. The jury is not allowed to know the true amount. This re-
ject to punitive damages provisions at the county level and may sults in inflated awards for medical claims to the plaintiff and in-
still be vulnerable to additional suits under the existing state and creased attorney fees, since personal injury attorney fees are set
federal laws. An employer is not guaranteed finality from the as a percentage of the dollar amount of the judgment. The prac-
county proceeding. The constitutionality of such an ordinance is tice of allowing these inflated or untrue damages increases the
questionable. The Florida Retail Federation has filed suit to chal- cost of personal injury suits without a commensurate true bene-
lenge the county ordinance. fit to the injured party. Once again, fairness and justice are not
There is no question that employees deserve to be fairly com- part of the suit.
pensated. If the existing protections are indeed inadequate, this POSITION: The Florida Retail Federation believes that injured
is an issue that needs to be addressed statewide. Piecemeal reg- parties should recover their true costs based on real expenses,
ulation will only create a burdensome business environment not phantom numbers. The Federation supports corrective leg-
without addressing the true issue of fair and balanced dealings islation to help restore truthful damage verdicts in personal in-
between employers and employees. jury lawsuits.
TEAM RETAIL 2012 LEGISLATIVE ISSUES | 3
PRE-EMPLOYMENT BACKGROUND The two entities should be considered the Core Court System
SCREENINGS for funding purposes. Filing fees and service charges in the Su-
ISSUE: Should employers be allowed to question job applicants preme Court and District Courts of Appeal should not be direct-
about their criminal history. ed into general revenue but into the courts’ trust fund, with all
DISCUSSION: Currently, the Equal Employment Opportuni- court-related revenue being distributed to the courts and clerks
ty Commission is considering new guidelines that would pre- in an amount sufficient to support their authorized budgets be-
vent employers from asking potential employees about wheth- fore distributions are made to other government programs and
er they have been convicted of a crime. Additionally, some cit- services. Additionally, there are certain court functions that are
ies and states have passed so called “Ban the Box” legislation, a requirement of state government: judges, court reporters, and
which forces employers to remove the criminal history convic- interpreters. As such, their salaries should be paid from general
tion check box on application forms. revenue, not court user fees and costs. These proposals will en-
Supporters of eliminating questions on criminal history dur- able the courts and clerks to have the funding necessary to sup-
ing the initial application phase say that this allows a person to port the budget authorized by the Legislature.
have a “fair chance” at proving that they would be the one best POSITION: The Florida Retail Federation supports the im-
able to perform the job. Removing the criminal history question plementation of a more stable funding mechanism for the State
from applications ensures that applicants won’t be automatically Court System.
excluded because of any past mistakes they have made.
For retailers, the ability to keep this question on applications ILLEGAL IMMIGRATION
is a necessary tool for keeping our customers – and our inven- ISSUE: What measures should be taken to deal with the prob-
tory – safe. lem of illegal immigration.
POSITION: The Florida Retail Federation will oppose any DISCUSSION: With the issue of illegal immigration rising to
proposed legislation that would prohibit prospective employers the level of firebrand rhetoric at the national level, elected lead-
from using criminal history information in hiring decisions. ers are expected to provide a thoughtful solution. Two specific
ideas which have been brought into the debate are: E-Verify and
DEBIT AND CREDIT CARD FEES discretionary checks on immigration status. For the retail in-
ISSUE: Should Florida ban surcharges on debit card dustry, both ideas have the potential to do harm if not correct-
transactions. ly implemented.
DISCUSSION: For many years, Florida has banned surcharg- E-Verify is a “free” web-based software program that veri-
es on credit card transactions, but not on debit cards. This allows fies the employee’s eligibility to work in the United States. Us-
a retailer to pass bank fees on debit card transactions on to the ing the employee’s Form I-9, the employer enters the required in-
customer if necessary. In the 2010 Legislative Session, an effort formation into the E-Verify system. The system then checks the
was made to ban surcharges on debit card transactions. Feder- name and social security number of the employee to determine
ation members and the AIP team fought hard to defeat the ban employment eligibility. Unfortunately, according to a report
and were ultimately successful. This mirrored an effort by re-
tailers at the federal level to rein in excessive charges by banks.
While no legislation involving debit card surcharges surfaced Lt. Gov. Jennifer Carroll accepts the Legislator of the Year Award
during the 2011 Legislative Session, the Federation needs to be from FRF Chairman Dan Doyle of Bealls, Inc.
vigilant and prepared to again fight any such legislation in the
POSITION: The Florida Retail Federation opposes any effort
to statutorily mandate a ban on debit card surcharges.
STATE COURT SYSTEM FUNDING
ISSUE: Should the Legislature revise the way the Court Sys-
tem is funded in order to ensure it has adequate revenue to car-
ry out its mission.
DISCUSSION: The Court Administrator has demonstrated that
insufficient funding of the court system adversely impacts its abil-
ity to handle and resolve civil cases in a timely manner, dispropor-
tionately affecting Florida businesses. The State Courts Adminis-
trator, along with representatives of trial and appeals courts, in-
cluding the Florida Supreme Court, has asked the business com-
munity for assistance in requesting that the Court System be
spared any proposed government spending cuts.
The work of the courts and clerks is inter-related, and each
entity depends on the other to provide justice to the people.
4 | FLORIDA RETAIL FEDERATION
is going to see an 8.9% increase this year. A large part of that in-
crease is being driven by a scheme known as “drug repackaging.”
All medications have a standard national drug code (NDC), a
number that is assigned by the manufacturer. That NDC is spe-
cific to the product and package size, and has an Average Whole-
sale Price (AWP) attached to it, which is used by claims proces-
sors to identify and process the claim for payment. Because drug
re-packagers remove drugs from their original containers and
place them in new containers of different quantities, the orig-
inal NDC is removed from the drug and it receives a new one
which is set by the re-packager. And, a loophole in Florida’s law
allows re-packagers to set a new AWP for repackaged drugs and
requires payers to reimburse providers at that new AWP plus
a $4.18 dispensing fee. Because of that loophole, repackaging
drugs for physician dispensing is now being marketed to medi-
Left to right: FRF Executive Committee Chairman Dan Doyle, Beall’s Inc.; FRF
cal practices as a tool to increase profit. One re-packager claims
Legislator of the Year Rep. Greg Steube (R-Sarasota); FRF Vice Chairman Sandy on its website that physician dispensing of repackaged drugs is
Fortin, Play It Again Sports; and FRF Executive Vice President Randy Miller meet
during the Annual Meeting in October.
“a profit center producing $20,000 to $100,000 additional net in-
come per physician per year.”
commissioned by and posted on the Department of Homeland Many recent studies on workers’ compensation data show
Security’s own website, E-Verify is only 48% reliable. E-Veri- that physicians who dispense repackaged drugs are being reim-
fy is reliant on the presumption that illegal immigrants do not bursed between 400 and 700 percent more than pharmacies for
use stolen social security numbers in order to gain employment. the same medication. Paying physicians the inflated rate pro-
However, identity theft is commonly practiced by the illegal im- moted by drug re-packagers has been an enormous cost driv-
migrant population and there is no way for the employer to de- er in workers’ compensation claims in recent years. While the
termine whether that has occurred. Additionally, E-Verify can- the Florida Retail Federation understands the service that phy-
not legally be used for prescreening. Therefore, an employer may sicians provide by dispensing certain medications from their of-
unintentionally hire, pay wages to, and pay taxes on an illegal fice, they should be subject to the same reimbursement rates as
immigrant. For those reasons, if the use of the E-Verify system is pharmacies.
required of employers, there must be an affirmative defense pro- POSITION: The Florida Retail Federation supports closing the
vided to them for using it. loophole in the Workers’ Compensation Law to make the reim-
Like E-Verify, the allowance of discretionary checks of immi- bursement fee schedule consistent regardless of where medica-
gration status must have parameters. If law enforcement officials tions are dispensed.
are given sweeping authority to run background checks during
simple traffic stops, this could have a devastating impact on our
tourist industry. Arizona, with the passage of its Senate Bill 1070,
lost millions of dollars in canceled convention business. Florida’s LOSS PREVENTION COUNCIL
economy simply cannot sustain such a loss. A more thoughtful
approach would be to encourage law enforcement profession-
als to confirm a suspect’s immigration status when conducting ORGANIZED RETAIL CRIME
criminal investigations. ISSUE: Organized retail crime continues to plague Florida
POSITION: The Florida Retail Federation favors reasonable retailers despite Florida having some of the strongest retail theft
action to ensure all foreign born residents and tourists are legal- laws in the country.
ly in the state. DISCUSSION: Unfortunately, retail crime has traditionally
been viewed as a minor crime and often doesn’t receive a high
DRUG REPACKAGING WORKERS’ priority from law enforcement and prosecutors. However, oc-
COMPENSATION LOOPHOLE currences of organized retail crime are increasing. Organized
ISSUE: Should physicians continue receiving a higher reim- groups of thieves have caused increased losses to retailers and,
bursement rate than statutorily intended by dispensing repack- consequently, higher prices to consumers along with loss of sales
aged medications to workers’ compensation patients. tax revenue. The proceeds from organized retail crime have
DISCUSSION: According to 440.015, Florida Statutes, “It is been traced to a number of criminal entities, such as terrorists
the intent of the Legislature that the Workers’ Compensation and Columbian drug cartels. In the past, bills have been filed
Law be interpreted so as to assure the quick and efficient delivery that further minimize organized retail crimes by increasing the
of disability and medical benefits to an injured worker and to fa- dollar threshold for felonies from $300 to $600. This would se-
cilitate the worker’s return to gainful reemployment at a reason- verely hamper retailers’ efforts to protect themselves from orga-
able cost to the employer.” Unfortunately, that “reasonable cost” nized crime schemes.
TEAM RETAIL 2012 LEGISLATIVE ISSUES | 5
Additionally, we have seen legislation and other propos-
als that would encourage the Department of Corrections to re- “The back-to-school sales tax holi-
lease “non-violent” offenders prior to their serving their full sen-
day has always been a way to boost
tence. Some of these proposals are being offered as a budget-re-
ducing method. The Federation has serious concerns with that
retail sales and help customers save
philosophy. We maintain that “non-violent” does not necessarily on necessities. In these difficult eco-
equate to non-serious. Most theft and fraud fall into the catego- nomic times, a sales tax holiday to
ry of “non-violent.” Yet, many of these criminals are as hardened help prepare students for the class-
as violent offenders and are as likely to be repeat offenders. Most room is a win for both families and
retail crime falls into the category of “non-violent.” our economy.”
In another twist on existing organized retail crime tactics, we
are seeing “flash mobs” descend on a store with a large number of —Sen. Ellyn Bogdanoff, R-Palm Beach
juveniles committing multiple thefts while attempting to over-
whelm store security and law enforcement. Current law needs to
be revisited to adequately address this new phenomenon. “Everyone wins with this tax break.
POSITION: The Florida Retail Federation continues to support It is a good, conservative measure
legislation that will deter organized retail crime. The Florida that allows all Floridians to partici-
Retail Federation will oppose any effort to weaken laws against pate.”
retail crime by increasing the felony theft threshold or releas-
—Senate Majority Leader Andy Gardiner, R-Orlando
ing “non-violent” offenders prior to the completion of their sen-
tence. We also support any effort to strengthen existing laws to
more adequately address “flash mob” crimes.
tax holiday. The study showed that the 3-day sales tax holiday ac-
tually generated increased revenues to the state in the amount of
$7 million based on increased sales of taxable items of $115 mil-
TAXES lion, rather than costing the state approximately $24 million in
lost sales taxes as asserted by the state revenue estimates. The
results of this study are in keeping with the 2009 Washington
BACK-TO-SCHOOL SALES TAX HOLIDAY Economic Group study which concluded that a sales tax holiday
ISSUE: Should Florida continue the Back-to-School Sales Tax would result in increased sales tax revenue to the state and, fur-
Holiday. ther, should be adopted on a continuing annual basis.
DISCUSSION: The Florida Legislature once again granted cit- POSITION: The Florida Retail Federation supports the Back-
izens a Back-to-School Sales Tax Holiday at the conclusion of the to-School Sales Tax Holiday.
2011 Legislative Session. This was in part due to our strong grass-
roots efforts and a study by the Washington Economics Group INTERNET SALES/USE TAX COLLECTION
that showed the actual positive economic effects of the 2010 sales ISSUE: Since Florida currently has no effective or efficient way
to collect sales or use taxes that are due and owing on purchas-
es made over the Internet or from other remote sellers, should the
Florida Retail Federation seek legislation during the 2012 Legis-
lative Session to enhance the collection efforts of these taxes by
changing/expanding the definition and application of “nexus” for
sales tax purposes related to companies that exploit the Florida
retail market through remote means.
DISCUSSION: The state of Florida does not actively attempt to
enforce the collection of sales/use taxes on purchases made over
the Internet or from other remote out-of-state vendors. Florida
law is very specific in stating that if the sales tax is not collected
at the time of sale, the purchaser is required to remit a use tax di-
rectly to the state of Florida, but since there is no active enforce-
ment of this requirement, it is necessary to establish ways to re-
quire the remote vendors to collect the sales tax at the time of
sale that would not violate the Federal Constitution.
Several states have now begun to tackle this collection issue by
Roxanne Parker, Macy’s Inc.; FRF Executive Committee Member Victor Gavalas, creating a broad-based grassroots effort, known as Main Street
Nic’s Toggery; FRF Treasurer Tom Petrillo, The Salon People/Aveda; and FRF Fairness, to pressure the various state governments to enhance
Chairman Paul Imbrone, Macy’s Inc. huddle at the Capitol during Retail Days in
February. the nexus provisions related to physical presence and extended
6 | FLORIDA RETAIL FEDERATION
nexus to click-through sellers located within the jurisdiction of
a particular state. Recently, the state of California was success-
ful in settling the dispute with Amazon.com by having Ama-
zon agree to the conditions of the California law, which will al-
low Amazon.com to continue to not collect the sales tax for one
year, but they must give notice to California citizens in the inter-
im period that the tax is due and should be paid directly to the
State. This occurrence has resulted in the desired effect of having
the world’s largest Internet vendor being placed on the same lev-
el playing field as brick and mortar retailers, which eliminates a
government created price differential. Hopefully Florida will be
able to negotiate a similar resolution
POSITION: The Florida Retail Federation will encourage the VISIT FLORIDA President/CEO Chris Thompson; FRF Chairman Paul Imbrone,
Macy’s, Inc.; FRF Board Member Vickie Kunkle, Hard Rock International; and
Florida Legislature to clarify its position on the collection of the Luanne Lenberg, Sawgrass Mills, at the Hotel Duval during Retail Days.
sales/use taxes and pass additional legislation on nexus which
resembles the California statute that will eliminate the current
price disparity between Internet purchases and purchases made UNEMPLOYMENT COMPENSATION REFORM
at brick and mortar retailers. ISSUE: What steps can be taken to ameliorate the impact of im-
pending unemployment compensation tax increases on Florida’s
STREAMLINED SALES TAX employers.
ISSUE: The Streamlined Sales Tax Project would revise the DISCUSSION: Florida’s Unemployment Compensation Tax
Florida sales tax statutes to standardize them with 24 other states System continues to be an area of crucial concern for Florida’s
that have already adopted the same model legislation. This would employers. Without intervention by the Legislature, employers
allow Florida to collect sales taxes on remote sales, meaning those paying at the minimum rate will have a tax rate of $171.70 start-
occurring on the Internet, through catalogues and from television ing January 1, 2012. This is an increase of $99.60 per employee.
solicitations. If Florida adopts this model legislation before the Employers will also have to pay an additional special assessment
U.S. Congress passes federal legislation, there would be a $44 mil- of around $10.00 per employee in order to make a payment on
lion cost to the state treasury due to certain mandated changes to the interest due to the federal government.
Florida’s sales tax statutes which are currently not recognized in Two significant changes need to be made to Florida’s Unem-
Florida law. Recognizing this cost, should the Florida Retail Fed- ployment Compensation Tax Policy in order to ensure Florida’s
eration continue to pursue passage of the model legislation prior employers don’t suffer further negative consequences as a result
to the Federal law being changed. of the expected tax increase.
DISCUSSION: Currently, Florida relies on the honesty of its First, we need to stretch out fund balance recoupment over
individual citizens to remit the “use tax” to the Florida Depart- a longer period of time. Fund balance recoupment is designed
ment of Revenue on a transaction-by-transaction basis. Since to provide a cushion to Florida’s Unemployment Compensation
many citizens aren’t aware of the requirement to pay the tax on Trust Fund. There is no federal requirement to maintain such a
items purchased from remote sellers, very little money is collect- cushion and, in dire times such as these, this is just extra mon-
ed and, as a result, Florida’s main street merchants are placed ey that’s being pulled from the pockets of employers. Current-
at a competitive disadvantage in pricing. The out-of-state mer- ly, Florida Statutes require $2 billion dollars be recouped from
chant not only does not collect or pay taxes in Florida, but uses employers over a three-year period. Stretching out fund balance
this fact to gain a price advantage through being able to sell an recoupment over a longer period of time will not impact bene-
item at a lower cost simply because he or she doesn’t collect the fits. It will simply reduce the tax burden on employers and allow
tax due on the sale. them to have more money available to create jobs.
POSITION: The Florida Retail Federation will be actively en- Second, we need to maintain the taxable wage base at $7,000.
gaged and encourage the 2012 Florida Legislature to adopt a A minimum taxable wage base of $7,000 complies with feder-
Joint Resolution requesting that the U.S. Congress pass federal al policies. Like stretching out fund balance recoupment, main-
legislation authorizing the states to implement legislation to col- taining the minimum wage base at this level will reduce the tax
lect these taxes. In addition, the Florida Retail Federation will burden on employers and encourage job creation. And, it will
support passage of legislation which will clarify the nexus pro- not impact the ability of claimants to receive benefits.
visions of the current state sales tax law that will allow the De- We cannot change the amount we owe the federal govern-
partment of Revenue to enforce the requirement to collect sales ment, but we can make smart choices about the impact on Flor-
tax on Internet sales. ida’s employers.
POSITION: The Florida Retail Federation supports the re-
view and adoption of key taxation policies that will minimize
the negative impact on Florida employers and help get Florid-
ians back to work.
TEAM RETAIL 2012 LEGISLATIVE ISSUES | 7
RETENTION OF SALES TAX COLLECTION encompassing areas of the state that are unlikely to be impacted
ALLOWANCE by an emergency, this creates additional operational challenges
ISSUE: Should Florida sales tax dealers be allowed to keep the and expenses for businesses.
small sales tax collection allowance currently authorized by the For a major disaster of statewide impact, a sweeping decla-
Florida sales tax statutes. ration is desirable. However, for the more localized emergency,
DISCUSSION: As legislators review the current fee and tax declarations of emergency can and should be narrowly drawn in
structure, some discussion may be directed at the dealers’ col- order to prevent confusion and instability in the marketplace.
lection allowance, which has been the subject of previous news POSITION: The Florida Retail Federation supports declara-
coverage alleging retailers are not remitting all of the tax they tions of emergency that protect consumers without hindering
collect. However, retailers are authorized by Section 212.12 (1), compliant businesses.
F.S. to keep 2.5 percent of the sales tax collected, up to a maxi-
mum of $30 per month, per store location. This fee is supposed MORATORIUM ON IMPACT FEES
to offset the retailers’ cost of collecting and remitting sales tax ISSUE: Should the Legislature adopt a statewide moratorium
for the state. While this collection allowance doesn’t come close on impact fees.
to the actual cost to the retailers for their collecting and remit- DISCUSSION: Growth and development have slowed to a
ting the sales tax, the allowance shouldn’t be eliminated and re- near halt in Florida. The cost of new development is daunting,
directed to the state treasury. Currently the collection allowance and impact fees are a significant part of those costs. Many local
is worth approximately $60 million annually to Florida retailers. governments have been proactive, reducing impact fees or put-
POSITION: The Florida Retail Federation will actively oppose ting moratoriums in place in order to encourage development. A
any effort by the Florida Legislature to revoke the payment of the statewide moratorium would go even further to defray the cost
Dealer Collection Allowance. of development and encourage new construction and business
growth throughout Florida.
POSITION: The Florida Retail Federation supports a statewide
moratorium on impact fees in order to encourage business growth.
SMALL BUSINESS COUNCIL
DELINQUENCY FEE INCREASE
ISSUE: Should Florida increase the fee a merchant creditor can
EMERGENCY DECLARATIONS collect on a late credit payment.
ISSUE: Should declarations of emergency be more narrowly DISCUSSION: Florida’s credit laws have capped the delin-
defined. quency fee that merchants are allowed to collect on a late pay-
DISCUSSION: When Florida declares a state of emergency, ment. During this time major credit-granting and neighboring
this triggers state laws that protect Florida’s consumers from states have increased their late fees, creating an incentive for a
price gouging. These laws are in effect in every area that is cov- debtor to pay the out-of-state retail creditor first and the Florida
ered by the declaration, for the duration of the declaration. retail creditor later or not at all. This has resulted in Florida busi-
In order to avoid being viewed as non-compliant with these nesses, by virtue of the operation of Florida law, being at a dis-
laws, many businesses significantly alter their typical and lawful advantage in collecting rightful bill payments. Retail creditors
pricing practices in the areas in which an emergency has been who opt to operate under Florida’s credit laws do so with a built-
declared. When the declarations of emergency are overly broad, in advantage for out-of-state retail lenders in getting their bills
paid. The question is often posed as to why Florida credit regu-
Wogan Badcock III, Badcock Home Furniture & lators cannot regulate the out-of-state lenders. Federal law al-
More, chats with Attorney General Pam Bondi at lows each state to set its own credit laws without being subject to
the Retail Days Legislative Luncheon.
other states’ laws. Consumers may more easily qualify for credit
from states with laws more friendly to credit operations. A mer-
chant can have retail operations in Florida, yet domicile its cred-
it operations in another state or contract with a credit grantor
in another state to manage its credit program. Either way, cred-
it with late fees higher than what Florida law allows is already in
the hands of Florida citizens. Again, this puts Florida’s creditors
in the position of their bills being paid later or not at all com-
pared with bills from credit grantors in other states.
POSITION: The Florida Retail Federation favors increasing
credit delinquency fees to an amount that is competitive with
those allowed by other states.
8 | FLORIDA RETAIL FEDERATION
on the sales transaction. The state receives 100 percent of taxes
due even though the retailer only has 97.5 percent of the actu-
al cash received for the tax collection. This situation results in a
cash subsidy to the state of Florida on all sales taxes collected as
a part of a credit card transaction.
POSITION: The Florida Retail Federation supports legislation
that would allow a retailer or other sales tax collector to be held
harmless for any credit card transaction fees that may be applied
to any sales tax collected as part of a credit card transaction.
EXPANDED VACCINATION AUTHORITY FOR
ISSUE: Should pharmacists be given expanded authori-
ty to provide vaccinations for shingles and pneumonia to senior
Rep. Denise Grimsley (R-Sebring), Chairwoman of the House Appropriations citizens.
Committee, and FRF President/CEO Rick McAllister share a laugh at the Capitol. DISCUSSION: Florida is one of only four states that do not al-
low pharmacists to administer a wide range of vaccinations. In
CREDIT CARD TRANSACTION / fact, across the border into Alabama, pharmacists can admin-
INTERCHANGE FEES ister a number of different vaccinations to patients as young as
ISSUE: Should retailers and other sales tax collectors be re- 9 years of age. Vaccinations are a simple service that can be
quired to subsidize the state of Florida by paying credit card trans- provided safely by a pharmacist, expanding low cost preven-
action / interchange fees on sales taxes collected as a part of a tive health care to a large segment of Florida’s population. Since
credit card purchase transaction. pharmacists were allowed to begin administering the influenza
DISCUSSION: Currently the state of Florida doesn’t autho- immunization in 2008, they have provided vaccinations for ap-
rize a governmental entity to accept credit cards for the pay- proximately 3 million patients with the Department of Health
ment of taxes or fees without the addition of a “convenience fee” reporting NO adverse incidents. If we allow pharmacists the ex-
surcharge. This surcharge is imposed to offset the transaction panded authority to provide immunizations for shingles and
/ interchange fees associated with processing the transaction, pneumonia, Florida’s 65 and older population will have an addi-
which guarantees that the governmental entity receives the to- tional resource for low cost health care.
tal amount of the tax or fee, not a discounted amount resulting POSITION: The Florida Retail Federation supports expanded
from the transaction fee assessment. The provision in the credit vaccination authority for pharmacists.
card companies’ master processing agreement which allows for
this treatment, however, does not allow a commercial entity to 90 DAY SUPPLY OF PRESCRIPTION
implement the treatment. A commercial entity may not charge a MEDICATIONS AT RETAIL
surcharge to any customer electing to use a credit card instead of ISSUE: Should state employees be required to use mail order to
cash. Therefore, all commercial credit card transactions are sub- fill their maintenance prescription medications.
jected to the transaction / interchange fees, which can be as high DISCUSSION: Last year, Florida adopted a policy which forc-
as 2.5 percent of the entire amount of the transaction processed, es state employees to obtain their maintenance medications
and would include any applicable sales taxes. through mail order in an effort to control the costs associated
When the credit card transaction is settled and funds are dis- with prescription drug plans. However, because of the competi-
tributed to the merchant’s account, the transaction processing tive environment of retail pharmacy, it is doubtful that mail or-
fee is subtracted from these funds causing the net distribution der plans offer a significant savings to the consumer, particularly
to be reduced by the transaction fee charge, usually a percent- when a retail pharmacy location can dispense a 90-day supply of
age of the entire amount of the transaction. When the merchant medications at the same cost. Furthermore, it is clear that man-
files his or her sales and use tax return, the entire amount of the dating the use of mail order pharmacy robs patients of vital in-
sales tax collected on the sale of the item is expected to be remit- teraction with their local community pharmacist. These highly
ted to the state even though the sale was made by credit card and trained experts provide guidance to patients on appropriate use
discounted by the assessed amount of the transaction processing of medications and offer a range of patient-oriented services to
fee. This results in retailers and other sales tax collectors having maximize a medication’s effectiveness.
to make up the difference between the actual amount of tax dol- POSITION: The Florida Retail Federation supports convenient,
lars collected versus the total amount of tax calculated to be due cost-effective access to prescription medications by authorizing
TEAM RETAIL 2012 LEGISLATIVE ISSUES | 9
pharmacies to dispense 90-day maintenance prescription medi-
cations to State Employees.
STATE REGULATION OF PHARMACIES AND
ISSUE: Should local governments regulate the operation and
practice of pharmacies.
DISCUSSION: In the past several years, Florida has struggled
with the growing problem of prescription drug abuse and traf-
ficking. In the 2011 Legislative Session, a sweeping reform bill
was passed bringing stricter regulation to the entire prescription
drug industry. From manufacturers, to distributors, to communi-
ty pharmacies, controlled substances will be tracked and report-
ed into the Prescription Drug Monitoring Program. Additionally,
physicians will no longer be able to dispense controlled substanc-
es. With all of the reforms that were implemented at the state level, Dan Doyle, Beall’s Inc.; Paul Imbrone, Macy’s Inc.; Rep. Alan Williams
(D-Tallahassee) and Debbie Harvey, Ron Jon Surf Shop.
Florida will begin to see a drastic drop in the illicit pill mill indus-
try. During the time that the Legislature was struggling with ex-
actly how to address the problem, local governments were becom- SUSTAINABILITY COUNCIL
ing desperate to control this very real threat to their communities.
They began to pass strict local ordinances in an effort to mitigate
the problem, and understandably so. However, now that there is BOTTLE DEPOSIT LEGISLATION
very strict regulation from the state, these local ordinances may ISSUE: Are additional mandates and regulations such as bottle
not only be unnecessary, they may be in conflict with the state deposit legislation necessary to increase Florida’s recycling rates.
regulation. Because the practice of healthcare already operates in DISCUSSION: Members of the retail industry are setting
a highly regulated environment, streamlining is crucial to ensur- the standard for environmentally responsible practices. With-
ing compliance; there should be one ultimate authority responsi- out regulations, requirements, or mandates, many retailers are
ble for the regulation of pharmacy and pharmacists. successfully establishing innovative practices that reduce waste,
POSITION: The Florida Retail Federation supports restricting conserve resources, and provide greater value to consumers.
the regulation of the practice of pharmacy to the state level. The Much attention has been given to regulatory measures such
Florida Board of Pharmacy, which operates under the Depart- as bottle bills and advanced disposal fees. Such measures are
ment of Health, is best equipped to oversee regulatory issues re- certainly well-intentioned, but their effectiveness is question-
lated to the practice of pharmacy. able. The potential for negative unintended consequences must
be considered before the state and its citizens invest their time
MEDICAID PROVIDER HANDBOOK and limited resources in pursuit of these measures.
ISSUE: Should Medicaid providers be given proper notification Bottle deposit regulations impose significant burdens on
in advance of changes made to the Medicaid Provider Handbook. Florida’s individual and corporate citizens, yet address only a
DISCUSSION: Chapter 409, Florida Statutes, governs the way very small portion of Florida’s waste stream. In order to estab-
the state handles Medicaid. It allows for the Agency for Health lish effective and worthwhile policies, there needs to be a com-
Care Administration to set forth the methodologies by which it prehensive evaluation of the state’s current recycling rates and
will reimburse Medicaid providers. Those methodologies, which waste reduction practices. We need to adopt clear and measur-
include reimbursement methods and fee schedules, are pub- able goals based on solid information, and our efforts need to fo-
lished in the Agency’s Florida Medicaid Provider General Hand- cus on the areas of greatest opportunity. Further, policies adopt-
book, Coverage and Limitations Handbooks, and Reimburse- ed by the state need to supplement and encourage – not hinder -
ment Handbooks. The authority granted to the Agency to imple- the voluntary efforts already taking place.
ment provider reimbursement methodologies is so broad that it POSITION: The Florida Retail Federation supports voluntary
has allowed for a system to develop in which the provider com- efforts to reduce, reuse, recycle and divert. The Florida Retail
munity has little or no input. The Agency is not required to hold Federation opposes bottle deposit legislation, which is an expen-
public workshops on changes to the handbooks, and they may sive and burdensome mandate that sounds good, but has little
apply changes retroactively, applying retroactive changes even to long-term benefit.
reimbursement rates. Such measures create confusion and insta-
bility in the industry that cares for Medicaid recipients. RENEWABLE ENERGY LEGISLATION
POSITION: The Florida Retail Federation supports giving ISSUE: Should Florida’s renewable energy legislation be
Medicaid providers advance notice of changes to claims submis- amended.
sions and rate reductions, as well as giving providers adequate DISCUSSION: Yes, Florida’s renewable energy statutes
opportunity for input prior to rule changes. should be amended to promote economic growth, economic
10 | F L O R I D A R E T A I L F E D E R A T I O N
RETAIL BEVERAGE COUNCIL
DRAM SHOP PRESERVATION
ISSUE: Should the Legislature preserve Florida’s current Dram
DISCUSSION: The Florida Retail Federation works diligent-
ly to preserve Florida’s Dram Shop Statute. Current law provides
that a person who sells or furnishes alcoholic beverages to a per-
son of lawful drinking age shall not thereby become liable for in-
jury or damage caused by or resulting from the intoxication of
such person, except that a person who willfully and unlawful-
ly sells or furnishes alcoholic beverages to a person who is not
of lawful drinking age or who knowingly serves a person habit-
Scott Dick, executive coordinator of the Retail Beverage Council of the Florida ually addicted to the use of an or all alcoholic beverages may be-
Retail Federation, and Sen. Miguel Diaz de la Portilla (R-Miami) during the FRF
Annual Meeting in October. come liable for injury or damage caused by or resulting from the
intoxication of such minor or person.
development, job creation, Florida’s economic and energy inde- POSITION: The Florida Retail Federation continues to empha-
pendence and long-term sustainability, and cost-effective devel- size education as the key factor in reducing over-consumption
opment of renewable power in Florida. and underage sales and encourages Florida’s lawmakers to make
Florida’s current renewable energy statutes declare sound no changes to the current statute.
policy goals – e.g., as set forth in Section 366.92(1), Florida Stat-
utes, “to promote the development of renewable energy; protect POOL BUYING
the economic viability of Florida’s existing renewable energy fa- ISSUE: Should pool buying groups/agents be permitted to place
cilities; diversify the types of fuel used to generate electricity in a delinquent member on the state delinquent list for non-payment
Florida; lessen Florida’s dependence on natural gas and fuel oil of merchandise.
for the production of electricity; minimize the volatility of fuel DISCUSSION: Currently, only distributors can place a retail
costs; encourage investment within the state; improve environ- vendor that fails to pay for merchandise purchased from the dis-
mental conditions; and, at the same time, minimize the costs of tributor on the state delinquent list. Retailers have 10 days to pay
power supply to electric utilities and their customers.” for the merchandise and if not timely paid then the distributor
In practice, however, Florida lags far behind other states both requests that they be placed on the state delinquent list which
in renewable energy development and in energy independence. prohibits further credit extension and could result in cash-only
At present, Florida imports approximately 97 percent of the fu- sales. The retailer loses any discount that was given.
els (coal, natural gas, oil, and uranium) that are burned to gen- Pool buying groups/agents have no means to place a delin-
erate Florida’s electricity supply from outside the state, and for quent member, whose payment was covered by the pool buy-
all practical purposes, Florida imports virtually 100 percent of ing group, on the state delinquent list in order to keep the entire
our transportation fuels. This leaves Florida extremely vulner- group from going on the delinquent list.
able to volatility in world energy prices; remember that in the POSITION: The Florida Retail Federation will work toward fa-
summer of 2008, gasoline cost more than $4 a gallon, and FPL vorable legislation that will allow pool buying agents to place a
and Progress Energy filed for mid-year increases in their “Fuel delinquent member on the state delinquent list when said mem-
Cost Recovery Charges” of nearly $1 billion between the two of ber fails to pay for their part of the pool order and the buy-
them. These simple facts mean that Florida “exports” very large ing group has made payment good on behalf of the delinquent
amounts of dollars to purchase its energy: developing Florida- member.
based renewable energy resources and supplies will keep those
dollars here in the state, keep more Floridians employed, and NON-ACTIVE QUOTA BEVERAGE LICENSES
protect the state and our economy against the vagaries of wildly ISSUE: Should more flexibility be given to licensees that need to
fluctuating world energy prices. place their quota licenses in a non-active status.
POSITION: The Florida Retail Federation supports policies DISCUSSION: The Division of Alcoholic Beverages and To-
and legislation that will promote Florida-based renewable ener- bacco, effective January 1, 2012, will only approve quota licens-
gy in order to enhance Florida’s energy independence and sus- es being placed into escrow (non-active status) if the licensed
tainability, promote economic growth and job creation in Flori- premises has been physically destroyed through no fault of the
da, and promote cost-effective development of renewable energy licensee; the licensee has suffered an incapacitating illness or
resources through fair, transparent, market-driven competition injury which is likely to be prolonged; or the licensed premis-
in order to get the maximum bang for the bucks that we spend es has been prohibited from making sales as a result of any ac-
on renewable energy. tion of any court of competent jurisdiction. Current statute and
TEAM RETAIL 2012 LEGISLATIVE ISSUES | 11
administrative rule conflict with one another. A change in the models. Ultimately, it is Florida’s consumers who are best served
statute will give more flexibility to place licenses into escrow. by a level playing field.
Quota licenses are required to be active a certain number of days
per calendar year. REGULATION OF THE COSMETOLOGY
POSITION: The Florida Retail Federation will work toward INDUSTRY
more flexibility with the escrowing of quota alcoholic beverage ISSUE: Should Florida’s cosmetology industry be deregulated.
licenses. DISCUSSION: There are almost 100,000 cosmetologists cur-
rently licensed and active in Florida, and close to 20,000 salons.
MANDATORY LICENSEE TRAINING Florida’s beauty industry is alive and well, and the continued
ISSUE: Should training be required of all alcoholic beverage regulation of this industry is in the best interests of both con-
licensees. sumers and cosmetology service providers.
DISCUSSION: Florida currently encourages voluntary train- It’s not just about looking good. The men and women of Flor-
ing for alcohol beverage licensees under Florida’s Responsible ida’s beauty industry receive extensive training and adhere to
Vendor Act. Many licensees participate in such training pro- strict sanitation policies to insure the health, safety and welfare
grams that are typically offered by the private sector, or pro- of their clients. The regulations and requirements in place en-
grams that are conducted in-house by the licensee. The Florida sure that Florida’s cosmetology industry keeps Floridians look-
Retail Federation is seeing a trend with local governments pro- ing good and feeling good.
posing training at the local level, contradictory of the Responsi- POSITION: The Florida Retail Federation does not support de-
ble Vendor Act. regulation of the cosmetology industry. However, there are al-
POSITION: The Florida Retail Federation will continue to sup- ways opportunities to streamline and seek greater efficiency in
port voluntary responsible vendor training. However, the Flor- regulation, and we would support such measures.
ida Retail Federation will be working with the Florida Division
of Alcoholic Beverages and Tobacco and the Florida Legislature
to explore whether current law needs to be modified. In addi-
tion, Florida’s Responsible Vendor Act could be amended to al- GROCERY COUNCIL
low additional mitigation to those licensees that use ID scanners
for underage sales compliance.
STATE OR LOCAL MANDATED NUTRITIONAL
ISSUE: Does Florida need to require nutritional labeling on
BEAUTY INDUSTRY COUNCIL food products.
DISCUSSION: While nutrition is a topic of great concern, fed-
eral law requires nutritional labeling on a broad array of food
EQUITABLE ENFORCEMENT OF products sold in retail outlets. There has been no suggestion that
COSMETOLOGY RULES AND STANDARDS the current federal laws are inadequate or not functional. Addi-
ISSUE: Should Florida consider changes to its cosmetology tionally, when food is processed and packaged, there is no way of
regulations to ensure equitable enforcement across all business knowing where that particular food product or package is des-
models. tined. Consequently, a workable federal law is preferable to a
DISCUSSION: Currently, salons in Florida operate under one patchwork of state or local laws.
of two business models. In the first model, a salon is staffed by POSITION: The Florida Retail Federation will oppose any local
salaried cosmetologists, who are employees of the salon. In the or state effort to mandate nutritional labeling on food products.
second model, cosmetologists operate as independent contrac-
tors in relation to the salon in which they serve clients. Both are
thriving business models within Florida. But, they are not treat-
ed equally under existing regulations, and this leaves employ-
er salons at a distinct disadvantage. It also leaves consumers at
We support equitable regulation across all cosmetology
business models. This will ensure that the same safety inspec-
tions will take place across all models, which is imperative for
the safety of clients. It will also ensure that all service provid- Watch for information on
ers are complying with the state’s tax and occupational licensing the 2012 Retailer of the
laws. There should be no unfair competitive advantage gained Year Award for Leadership
through circumventing lawful regulation. program coming soon!
POSITION: Florida Retail Federation supports the equita-
ble enforcement of cosmetology regulations across all business
12 | F L O R I D A R E T A I L F E D E R A T I O N
FRF Contract Lobbyists 2012 Florida Retail Federation Board of Directors
Specific knowledge and expertise on key
retail issues are contributed by each of Vickie Kunkle
EXECUTIVE ADVISORY SENIOR ADVISORY
Florida Retail Federation’s contract Hard Rock
COMMITTEE MEMBER OF COUNCIL
lobbyists. Coordinated by and working International
cooperatively with FRF’s staff lobbyists, Orlando, FL
Mr. Paul Imbrone COMMITTEE Dr. Susan Fiorito
they bring additional impact to the
association’s comprehensive legislative Chairman of the Board Florida State
Macy’s, Inc. Charles R. Wintz, Melanie Lee University
Miami, FL CPA Kia AutoSports Tallahassee, FL
Charles R. Wintz, Tallahassee, FL
Daniel J. Doyle CPA, PA M. Clayton Hollis, Jr.
Chairman, Executive Jacksonville, FL John B. Lowe Publix Super
Committee SeaWorld Parks & Markets, Inc.
Beall’s, Inc. Entertainment Lakeland, FL
Bradenton, FL RETAIL COUNCIL Orlando, Florida
Stephen M. Knopik
Travis W. Blanton Amy Christian W. R. “Sandy” Michael J. Ayotte Kevin Lundy Beall’s, Inc.
Johnson and Blanton Johnson and Blanton Fortin CVS Caremark Yum! Brands, Inc. Bradenton, FL
Tallahassee Tallahassee Vice Chairman Richmond, VA Louisville, KY
Play It Again Sports William Kundrat, Jr.
Lakeland, FL Wogan Badcock, III Bruce Mitchell Sun City Center, FL
Badcock Home Rally Stores, Inc.
Tom Petrillo Furniture & More Clearwater, FL Warren R. McCurry
Treasurer Mulberry, FL Killarney, FL
The Salon People/ Mike Mitchell
Aveda Steve Brophy Publix Super Nis H. Nissen, III
St. Petersburg, FL Dollar General Markets, Inc. Nissen Advertising, Inc.
Goodlettsville, TN Lakeland, FL Lakeland, FL
Scott Dick Ron Greenstein Richard A.
SKD Consulting Tallahassee McAllister Rey Montoto
Group, Inc. Erika Carter Thomas S. Petcoff
President and CEO Target Corporation Kash n’ Karry/ Baron Realty, Inc.
Florida Retail Minneapolis, MN Sweetbay Supermarket Lakeland, FL
Federation Tampa, FL
Tallahassee, FL Casey Cesnovar Joanne Powers
Walgreen Co. John Mullen The Salon Professional
Deerfield, IL Office Depot Academy
AT-LARGE Boca Raton, FL Tampa, FL
MEMBERS OF Ken DeHart
THE EXECUTIVE JC Penney W. Kelly Palmer Ron Sacino
COMMITTEE Tallahassee, FL The Hayloft, Inc. Sacino’s Formalwear
Becky Kuczwanski Jon Johnson Fort Myers, FL St. Petersburg, FL
Tallahassee Johnson and Blanton Dean Elliott
Tallahassee Jacob DiPietre
Dillards, Inc. Walt Disney World Co. Ray Pohlman George Sandefer
Little Rock, AR Lake Buena Vista, FL Auto Zone, Inc. Rutherfords, Inc.
Memphis, TN Palatka, FL
Victor Gavalas Rory Eggers
Nic’s Toggery Foremost Beverage Scott Reams Carol Sipe
Tallahassee, FL Group Best Buy, Inc. Summit
Orange Park, FL Tampa, FL Lakeland, FL
Ron Jon Surf Shop Mitch Klein Bob Smith Bart A. Weitz
Cocoa Beach, FL Bravo Supermarkets Albertson’s, Inc. University of Florida
White Plains, NY Lake Mary, FL Gainesville, FL
Wal-Mart Stores, Inc. Kent Knutson Henry Tucker Michael Zagorac, Jr.
Tallahassee, FL The Home Depot Southside Package & Largo, FL
Washington, DC Lounge, Inc.
227 SOUTH ADAMS STREET
TALLAHASSEE, FL 32301-1720
PRO-GROWTH TAX REFORM Projected Florida Retail Internet Sales Tax
C L O S E T H E I N T E R N E T S A L E S TA X L O O P H O L E Revenues Lost 2009-2020
A new study conducted by noted economists Ardu- $0.8 $30.0
in, Laffer & Moore conservatively estimates that eliminat-
ing special tax treatment for online-only sellers would net $0.6
between $449.6 million and $454 million in 2012, giving $0.4
Florida lawmakers the opportunity to make meaningful $0.3
reductions in the state’s tax rates.
According to the study, the Internet Sales Tax Loophole $10.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
has been encouraging Florida residents to purchase goods 2
and services from sellers that are not residents of Florida. Florida Internet Tax Revenues Lost (historic growth)
This has narrowed Florida’s sales tax base and punished Florida Internet Tax Revenues Lost (Forrester Projection)*
Florida’s small businesses by increasing government reli-
ance on other types of taxes.
For every 10 percent of Internet-only retail sales re- Projected Florida Retail Internet Sales
turned to Florida retailers (either through an Internet sale 2009-2020
or a sale at a physical store), total Florida retail sales will
increase by between $2.8 billion and $3.1 billion by 2020
with an expected impact of 8,300 to 9,200 additional jobs,
the study says.
$0.4 Treating businesses and consumers the same — regard-
$0.3 of where they decide to shop or locate — will enhance
economic opportunity, according to the study, which was
prepared for the Florida Retail Foundation in October 2011. $10.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
DOWNLOAD the entire study on the web at Florida Internet Retail Sales (historic growth)
http://mymainstreetflorida.com Florida Internet Retail Sales (Forrester Projection)
*Source: ALME projections
based on data from
“Florida’s tax system discourages retailers from locating and creating jobs in Florida. Treating all retailers Forrester Research, Florida
equally would eliminate the disincentive to buy from local retailers. That will encourage economic growth Department of Revenue
and U.S. Census. 2009 is
and foster job-creation in Florida while addressing the priorities of Governor Scott and legislative leaders.” estimate and 2010 through
2020 are projections.
— Donna Arduin, economist and former Budget Director for Governor Jeb Bush