The Florida Senate considered tax relief legislation along with provisions of the state budget, delivering over $1.5 billion in broad-based tax savings to families across the state. The legislation focused on keeping Florida affordable by reducing taxes on property insurance as well as key items utilized by growing families and seniors.
This legislation, which includes over $500 million in property insurance tax relief, builds on historic tax relief passed in prior years that helps Floridians fight inflation. HB 5001 also includes $450 million in toll relief.
“Florida cannot independently fix or outpace inflation caused by reckless spending policies in Washington,” said Republican Senator Blaise Ingoglia. “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 and toll relief that is extremely popular and highly utilized, as well as over $500 million in key tax relief on homeowner insurance policies, helping families bridge the gap as our property insurance market grows and stabilizes.”
“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 Republican Senate President Kathleen Passidomo, of 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. Over $500 million in tax cuts for property insurance and flood insurance premiums are 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, 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 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 FOR HOMEOWNERS
- HB 7073 includes 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 county 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.
Over the last several years, as state revenues have increased, Republicans in the Florida Legislature held the line on spending and prioritized broad-based tax relief for Florida’s families and businesses.
