Bid to Block Florida’s New Sales Tax Fails
A federal judge on Friday refused to block collection of Florida’s new 5% sales tax on services.
U.S. District Judge Maurice Paul ruled after hearing arguments from two people that the tax would place an unfair burden on litigants in federal cases because it would apply to lawyers’ fees.
The judge relied on a section of the U.S. Code called the Tax Injunction Act that prohibits intervention by federal courts in state tax matters unless lawsuits challenging taxes have been exhausted in state courts.
A law applying the 5% sales tax to hundreds of previously untaxed services, including legal fees and advertising, goes into effect Wednesday.
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