June 9, 1999

Legislative Activity

Florida Exempts Agencies From Tax

June 9, 1999

Yesterday, Florida Gov. Jeb Bush (R) signed advertising industry-supported legislation specifically exempting advertising agencies from charging sales tax for many services. The new law will be effective July 1, 1999. The bill had widespread support in the legislature, passing both the House and Senate unanimously.

This important victory is a result of the cooperative efforts of the AAF 4th District advertisingfederations and the Florida Council of the American Association of Advertising Agencies. AAF 4th District Legislative Chair Jack Hebert, who coordinated the volunteer lobbying effort, and AAF 4th District Gov. Brenda Edwards deserve special recognition for their work. This feat would not have been possible without the many years of hard work from countless AAF and AAAA members who set the stage for this year's achievement.

The new law should halt the department of revenue's (DOR) attempts to collect sales taxes on many services provided by advertising agencies. The DOR had persisted, despite having lost at least twice in court when the taxes were challenged by audited agencies. Department officials do deserve credit for working with the advertising industry to draft mutually acceptable legislative language.

The work is not finished, however. The department still must undergo a rulemaking procedure to implement the new law. Advertising industry representatives will continue to work with DOR officials to draft a mutually acceptable rule.

Do not hesitate to contact us if you have any questions. You may reach us at 1-800-999-2231 or crector@aaf.org or jperlman@aaf.org.