This month, Florida Governor Ron DeSantis signed House Bill 7073, providing $1.07 billion in tax relief for Floridians this year, in addition to the $450 million in toll relief that he signed last month, bringing the total savings for Florida families to $1.5 billion for Fiscal Year 2024—25. Since 2019, the Governor has secured nearly $6.7 billion in tax cuts while maintaining a comfortable budget surplus.
“Florida’s economy has remained strong despite reckless federal spending and failed policies in Washington,” said Republican Governor Ron DeSantis. “This tax relief package will provide much needed relief for Florida’s families, especially as the D.C. political class shows no signs of reversing course on the inflationary policies of the federal government.”
For a breakdown of the tax relief package, see below:
- Insurance Premium Tax Relief
- Waives insurance premium taxes for one full year on homeowners’ insurance policies and flood insurance policies.
- Sales Tax Relief
- Back to School Sales Tax Holiday
- Clothing priced $100 or less.
- School supplies priced $50 or less.
- Computers or related accessories priced $1,500 or less.
- Learning aids and puzzles priced $30 or less.
- Two Disaster Preparedness Sales Tax Holidays
- For specified disaster preparedness supplies for families and their pets.
- Tool Time Sales Tax Holiday
- Tools used in skilled trades—power tools, tool belts and boxes, etc.
- Freedom Month Sales Tax Holiday
- For specified recreational items.
- Back to School Sales Tax Holiday
- Child Focused Tax Credits
- Increases the cap for the Strong Families Tax Credit from $20 million to $40 million, which provides tax credits to companies that make charitable contributions to child welfare organizations.
- Creates a tax credit for employers who operate or support a childcare program for their employees.
- Other Tax Relief
- Provides automatic return filing extensions for sales tax and corporate income tax in certain emergencies.
- Creates a corporate income tax credit for businesses that hire persons with disabilities.
- Limits documentary stamp tax assessments for reverse mortgages.
The tax package will help homeowners by providing a one-year exemption on taxes on residential property and flood insurance premiums. This is in addition to the $200 million that was signed last month for the My Safe Florida Home Program, bringing the total investment to the program to over $600 million since 2022. Since the Governor signed sweeping reforms in 2022 and 2023, eight new companies have joined the homeowners insurance market in Florida. The success of these reforms is becoming increasingly clear in rate filings for insurers. In fact, 10 companies have filed a zero percent increase and 10 more have filed a rate decrease to take effect in 2024, according to Republicans.
“At a time of rising inflation, Florida’s legislative leaders and Governor DeSantis continue to deliver meaningful tax relief to help the people of Florida,” said Florida House Speaker Paul Renner. “People across the country are finding out what Floridians have known for years—allowing people to keep more of what they earn benefits Florida families, workers, retirees, and businesses. With the signing of HB 7073 we continue that tradition–a tradition we like to call, ‘the Florida Way’.”
“With the signing of the state’s tax package today, Floridians will enjoy some of the lowest taxes in the nation,” said House Ways & Means Chairman Stan McClain. “Thanks to the leadership of Speaker Renner, Senate President Passidomo and Governor DeSantis, Floridians can work, play, raise their family and hold on to more of their hard-earned money in the process. That’s ‘the Florida Way’.”
Additionally, this year’s tax cut package is a continuation of our annual tax holidays. These tax holidays include:
- Two Disaster Preparedness Holidays;
- June 1st—14th and August 24th—September 6th, families can prepare for hurricane season with items like tarps, batteries, and flashlights, sales tax free.
- The Back-to-School Sales Tax Holiday;
- July 29th—August 11th, families can save on pens, pencils, computers, clothing, and other school supplies.
- The Tool Time Sales Tax Holiday;
- September 1st—7th, Floridians can save on power tools, hand tools, toolboxes, and other items.
- The Freedom Month Sales Tax Holiday;
- July 1st—31st, Florida families can purchase summer items like pool floats, fishing supplies, and outdoor equipment, in addition to admissions to museums and state parks, sales tax free.
Among other savings, the tax relief package also includes a sales tax credit for businesses that employ persons with disabilities. Additionally, the bill increases the cap for the Strong Families Tax Credit Program from $20 million to $40 million, which supports organizations focused on child welfare.
Visit Florida Sales Tax Holidays online for more information on the sales tax holidays.
