The Florida Senate Committee on Finance and Tax, chaired by Senator Blaise Ingoglia (R-Spring Hill), today proposed SPB 7074. This tax relief legislation delivers over $900 million in broad-based tax savings to families and small businesses across the state, with a focus on keeping Florida affordable by reducing taxes on property insurance as well as key items utilized by growing families and seniors. The legislation will be considered during tomorrow’s committee meeting, and builds on historic tax relief passed in prior years, which helps Floridians fight inflation.
“Florida cannot independently fix or outpace inflation caused by reckless spending policies in Washington. While the federal government just keeps printing money, here in Florida under the leadership of Governor DeSantis and the Florida Legislature, we are saving it and living within our means, so we can continue to offer sales tax holidays that are extremely popular and highly utilized, as well as key tax relief on homeowner insurance policies, helping families bridge the gap as our property insurance market grows and stabilizes,” said Senator Ingoglia. “We also recognize that with no income tax, Florida relies heavily on businesses, primarily small businesses, to collect taxes required on the sale of goods and to send those taxes to local governments and Tallahassee. Our legislation reduces the cost of doing business in Florida, lowering some of the cost associated with collecting sales tax on behalf of the state and local government.”
“Inflation has led to significant increases in costs that are negatively impacting families. We are working to ease the pain with broad-based sales tax relief that will be very meaningful for families and seniors with opportunities for tax savings for families with kids heading back to school, those looking to prepare their homes for severe weather, and for Floridians, young and old, who want to get out and enjoy all the beautiful natural resources and fun events the free state of Florida has to offer this summer,” said Senate President Kathleen Passidomo (R-Naples). “We also recognize the cost of property insurance is posing a major affordability problem for many Florida homeowners. I believe every little bit helps, and reducing the taxes associated with flood insurance and property insurance premiums is important for families who are trying make ends meet as our insurance market strengthens.”
SALES TAX HOLIDAYS
Back-to-School Sales Tax Holiday
The legislation creates a 14-day “back-to-school” sales tax holiday from July 29 – August 11, 2024, for clothing, footwear, and backpacks costing $100 or less, school supplies costing $50 or less, learning aids costing $30 or less, and personal computers or computer-related accessories, including non-recreational software, costing $1,500 or less.
Disaster Preparedness Sales Tax Holiday
The legislation creates two 14-day “disaster preparedness” sales tax holidays from June 1 – 14, 2024 and August 24 – September 6, 2024, for disaster preparedness supplies. Some examples of tax-free items include: flashlights and lanterns costing $40 or less; reusable ice costing $20 or less; radios costing $50 or less; tarps and ground anchors or tie down kits costing $100 or less; coolers and portable power banks costing $60 or less; batteries and fuel tanks costing $50 or less; smoke detectors, fire extinguishers, and carbon monoxide detectors costing $70 or less; and generators costing $3,000 or less. The holiday also includes a number of items related to the safe evacuation of household pets.
Freedom Month: A Month-Long Sales Tax Holiday on Recreational Items
From July 1 – July 31, 2024, purchases of admissions to music, sporting, and cultural events; tickets to movies and museums; single admission or season tickets to theatre and dance performances; state park admission and annual passes; and use of fitness facilities will be tax free. Tickets, memberships and passes, purchased during this time for use any time from July 1 – December 31, 2024, are tax free.
The month-long summer sales tax holiday also applies to sales of certain boating and water activity equipment and supplies, camping equipment and supplies, fishing equipment and supplies, general outdoor supplies (including sunglasses, sunscreen, and grills), and residential pool chemicals, supplies and parts.
Skilled Worker Sales Tax Holiday on Tools
The legislation creates a seven-day sales tax holiday from September 1 – 7, 2024, for certain tools used by skilled trade workers. Tax-free items include certain hand tools costing $50 or less and power tools costing $300 or less, work boots costing $175 or less and many other pieces of safety equipment, as well as certain shop lights, toolboxes and belts, and plumbing and electrical equipment.
PROPERTY INSURANCE TAX RELIEF
- A one-year exemption on taxes, fees, and assessments for residential property insurance policyholders, covering the cost of select taxes, fees, and assessments for residential property insurance policies with a coverage amount of up to $750,000 written between July 1, 2024, and June 30, 2025, for a twelve-month coverage period. These include the Insurance Premium Tax, the State Fire Marshal Assessment, and the Florida Insurance Guarantee Association (FIGA) Assessment.
- A one-year insurance premium tax exemption on Flood Insurance Policies, reducing the cost of flood insurance policies written between July 1, 2024, and June 30, 2025.
SMALL BUSINESS TAX RELIEF
- An increase of the Sales Tax Collection Allowance, reduces the cost of doing business, creating savings for predominantly small businesses. For the first time in many years, the bill increases the collection allowance from the current 2.5 percent of the sales taxes collected, or up to $30, to the first $45 of the amount of the tax otherwise due. This means each time businesses transfer the sales taxes they collected to the state, the business can keep the first $45, helping to offset the cost the business incurs to collect those taxes.
- The bill provides a credit against the corporate income tax for businesses employing persons with unique abilities of $1,000 per employee, subject to an annual statewide cap of $5 million.
- The bill increases the annual cap for the Strong Families Tax Credit Program from $20 million to $40 million. The Strong Families Tax Credit Program was created in 2021 to provide tax credits for businesses that make monetary donations to certain eligible charitable organizations focused on child welfare and well-being.
Background: Over the last several years, as state revenues have increased, the Florida Legislature has held the line on spending and prioritized broad-based tax relief for Florida’s families and businesses.
2023: As part of a historic tax relief package, House Bill (HB) 7063 provided permanent tax relief on key items utilized by growing families and seniors. The bill created a permanent sales tax exemption on the sale of baby and toddler diapers, wipes, clothing, shoes, strollers, cribs and many other baby and toddler safety items. The legislation also created a permanent tax exemption on the retail sale of adult diapers and incontinence products and oral hygiene products, including toothbrushes, toothpaste, and floss. Further, the bill created a permanent sales tax exemption on certain materials used in agricultural operations, and reduced the business rent tax. Additionally, the bill froze the local cell phone and TV tax (local communications services tax) rates for three years. The local communications services tax rate in effect on January 1, 2023, may not be increased before January 1, 2026.
2022: House Bill 7071, delivered over $1 billion in broad-based tax savings to families across Florida, with a focus on long- and short-term sales tax relief. The legislation resulted in savings for Floridians preparing for Hurricane Season and the 2022-2023 school year, with added tax relief to benefit those raising young children, purchasing energy efficient appliances or skilled worker tools; as well as, individuals and families enjoying outdoor activities and events. With gas prices at an all-time high last year, a month-long gas tax holiday provided key relief for Florida families and businesses. The bill also eliminated property taxes for homeowners who suffered losses in the Champlain Towers condominium collapse in Surfside, Florida, and expanded existing property tax relief for deployed military service members, widows, widowers and blind or disabled Floridians.
2021: House Bill 7061 established Back-to-School, Disaster Preparedness, and Freedom Week Sales Tax Holidays, created a permanent tax exemption for independent living items, and expanded the tax credit for affordable housing. SB 50 prevented an unexpected tax hike on businesses by replenishing the unemployment compensation trust fund. The bill created a fair playing field for Florida businesses by requiring the collection of existing taxes that are owed, but not currently collected from out-of-state online retailers. Revenue derived from those collections is used to replenish the Unemployment Compensation Trust Fund depleted by the COVID-19 Pandemic, ensuring necessary compensation is available for Florida workers seeking re-employment. When the trust fund reaches pre-pandemic levels, the law automatically triggers a permanent reduction in the business rent tax.
2020: House Bill 7097 established Back-to-School and Hurricane Preparedness Sales Tax Holidays.
2018 and 2019: House Bills 7087 (2018) and 7123 (2019) established Back-to-School and Hurricane Preparedness Sales Tax Holidays, reduced the business rent tax, and created several exemptions related to hurricane response, preparedness and recovery.
2017: House Bill 7109 established Back-to-School and Hurricane Preparedness Sales Tax Holidays, created a sales tax exemption for feminine hygiene products, and reduced the business rent tax.
2016: House Bill 7099 permanently eliminated the sales tax for machinery and manufacturing equipment, and established a Back-to-School Sales Tax Holiday.
2015: House Bill 33-A permanently decreased the communication services tax on Floridians’ phones and television services, instituted a Back-to-School Sales Tax Holiday, and among other tax relief measures, eliminated the sales tax charged to returning service members and their families who purchased a vehicle overseas.
2014: House Bill 5601 established Back-to-School and Hurricane Preparedness Sales Tax Holidays; created permanent sales tax exemptions for children’s car seats, booster seats, and bicycle helmets; and provided a nearly $400 million reduction in vehicle registration fees. The legislation reduced certain annual fees paid to register a motor vehicle to the amount paid prior to 2009. In addition to other tax relief measures passed in 2014, this legislation provided annual fee relief to every Floridian who registers a car or truck.