Following tax legislation effective July 1, 2021, Florida businesses must apply a new rounding algorithm when calculating sales and use taxes. This legislation replaces Florida's old "bracket" rounding system.
AvaTax automatically applies the new rounding algorithm to Florida transactions dated July 1, 2021 or later.
Florida transactions dated July 1, 2021 or later
Under Senate Bill 50, tax calculations must be carried to the third decimal place. If the third decimal place is greater than 4, the tax must be rounded up to the next cent.
AvaTax uses the new rounding algorithm for Florida transactions if they are dated July 1, 2021 or later. For more information about AvaTax's rounding determinations, see What is the difference between Document and Line level rounding.
Florida transactions dated before July 1, 2021 (Bracket system)
Prior to the new law, Florida's table-based "bracket" system required businesses to calculate sales tax to the sixth decimal, and then round up. This logic still applies to rounding calculations for transactions dated before July 1, 2021.
Because AvaTax automatically applied the old bracket system logic to these transactions, earlier transactions in Florida may appear to be off by a single cent and changes to your company's Rounding setting do not apply to those particular rounding results. Detailed bracket tables can be found in Florida's Department of Revenue form library, in the Sales and Use Tax section.
Learn more about the old bracket system at the Avalara blog.