FLORIDA'S SALES TAX ON SERVICES

Abstract

During its 1987 session, the Florida legislature enacted a sales and use tax on a broad range of services consumed in the state. Because the tax systematically sought to tax services that were performed outside the state but used in Florida (including national advertising), the levy triggered an enormous storm of protest with opponents attacking it as unfair, unwise, and unconstitutional. This article traces the historical development of Florida's sales tax on services, examines its design and operation, explores the policy questions that the tax raised, considers the legal challenges to the levy's validity, and describes the events that led to its ultimate repeal.