Sales tax holidays and property insurance tax relief among items to help families.
As the gavel fell on another Florida legislative session, lawmakers are wrapping up their agendas and leaving behind a trail of bills sent to the Governor’s desk for signing.
“We have delivered unprecedented victories for the people of Florida,” said Governor Ron DeSantis. “I asked the Legislature to deliver as boldly as they did last session, and they have done so. Florida continues to show the nation how to lead on every issue.”
One package set for consideration by DeSantis, is a nearly $1.5 billion in tax savings to families, with a focus on keeping Florida affordable by reducing taxes on property insurance as well as key items utilized by families and seniors.
If DeSantis signs off on them, here is the nuts and bolts of what that means for consumers:
SALES TAX HOLIDAYS
Back-to-School Sales Tax Holiday: The legislation created 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 created two 14-day ‘disaster preparedness” sales tax holidays from June 1 – 14 and August 24 – September 6, 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, electric scooters, general outdoor supplies (including sunglasses, sunscreen, and grills), and residential pool chemicals, supplies and parts.
Skilled Worker Sales Tax Holiday on Tools: The legislation created 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 FOR HOMEOWNERS
• A one-year relief for residential property insurance policyholders, covering the cost of insurance premium tax and the State Fire Marshal assessment for residential property insurance policies written between October 1, 2024, and September 30, 2025, for a twelve-month coverage period.
• The bill also includes a one-year insurance premium tax relief on flood insurance policies, reducing the cost of flood insurance policies written between October 1, 2024, and September 30, 2025.
TOLL RELIEF
HB 5001, the General Appropriations Act, accounts for $450 million for a statewide toll relief program to be developed by the Department of Transportation. Toll relief will be provided for certain high-use customers from April 2024 until March 2025. Customers using a Florida-issued transponder who use Florida’s Turnpike System and other toll facilities in the state are eligible. Customers who engage in 35 or more toll transactions in a month will receive a 50 percent credit.
SMALL BUSINESS TAX RELIEF
• HB 7073 provides a $5 million credit for three years against the corporate income tax for businesses employing persons with unique abilities of $1,000 per employee.
• Additionally, the bill provides for a $5 million credit for three years for businesses for child care expenses incurred on behalf of employees.
• The bill also 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.
HILLSBOROUGH COUNTY SALES TAX HOLIDAY
HB 7073 and HB 5001 provide for $182 million in local sales tax relief in Hillsborough County as a result of a court ruling on the former All for Transportation tax.
property tax relief
House Joint Resolution 7017 proposes an amendment to the Florida Constitution requiring the current $25,000 homestead exemption, which is applied to all ad valorem taxes other than school district taxes, be adjusted annually for positive inflation growth. The amendment will be considered by Florida voters at the 2024 general election and, if approved by 60 percent of the electors voting on the measure would take effect on January 1, 2025. If passed, the amendment is expected to save Florida homeowners $22.8 million during the first year, growing to $111.7 million by Fiscal Year 2028-29.
