What is Discretionary Sales Surtax?
Discretionary Sales Surtax (DSS) is an additional sales tax that is authorized by the Florida Legislature. The funds collected from DSS are used to fund local projects and services.
What is the Purpose of DSS?
The purpose of DSS is to provide local governments with additional funding to support projects and services that benefit the community. The funds collected from DSS are used to improve the quality of life for residents, such as funding for public safety, infrastructure improvements, and community services.
How is DSS Calculated?
DSS is calculated as a percentage of the sales price of taxable items. The rate of DSS varies by county, and in some cases, by municipality. In Florida, the maximum DSS rate is 2.5%.
Who is Required to Collect DSS?
Any business that sells taxable items in a county or municipality that has authorized DSS is required to collect and remit the tax to the local government. Failure to collect and remit DSS can result in penalties and interest charges.
What are the Changes for Calendar Year 2024?
For calendar year 2024, several counties and municipalities in Florida have authorized changes to their DSS rates. Some have increased their rates, while others have decreased or eliminated their DSS altogether.
How Can I Find Out the DSS Rate for My Area?
You can find out the DSS rate for your area by contacting your local government or by visiting the Florida Department of Revenue website. It is important to stay informed about changes to DSS rates in your area to ensure that your business is collecting and remitting the correct amount of tax.
What Happens if I Fail to Collect or Remit DSS?
If you fail to collect or remit DSS, you may be subject to penalties and interest charges. In addition, your business may be audited by the Florida Department of Revenue, which can result in additional penalties and fees.
How Can I Ensure that My Business is Compliant with DSS Requirements?
To ensure that your business is compliant with DSS requirements, it is important to stay informed about changes to DSS rates in your area and to accurately collect and remit the tax. You can also consult with a tax professional to ensure that your business is in compliance with all state and local tax laws.
Conclusion
Discretionary Sales Surtax is an important source of funding for local projects and services in Florida. It is important for businesses to understand their responsibilities for collecting and remitting DSS, as well as staying informed about changes to DSS rates in their area. By staying compliant with DSS requirements, businesses can avoid penalties and fees while supporting their local communities.