The Florida House passed HB 7071, which would codify four new sales-tax holidays for Floridians. The bill was passed unanimously and was championed by Florida House Speaker Chris Sprowls (R-Palm Harbor) as the “coolest tax package.”
Under the proposal, back-to-school items would be tax-free during a 14-day span during late July and early August. Similarly, hurricane preparedness items would be tax-free for the same amount of days from late May through early July. Active and outdoors items will be tax-free around Independence Day, and lastly, tools and work equipment would be tax-free around Labor Day.
Many of the sales tax holidays have been in existence for a number of years, and notably, Florida Governor Ron DeSantis (R) championed “Freedom Week” in July 2021 for consumers.
Economists have projected the numerous sales tax holidays would provide Floridians with as much as a $325 million tax break throughout the year.
Specifically, “Freedom Week” could lead to as much as a $74.6 million tax break. Another proposal would lift sales taxes on baby diapers for a year and is projected to provide Floridians with $35.6 million in savings.
While the tax package does include holidays, it also includes tax relief to property owners if they are affected by a sudden and unforeseen collapse of a residential building. The impetus for this proposal stems from the Surfside condo collapse tragedy last year.
The Florida Association of Counties (FAC) has said this proposal could limit the tax base.
“We understand what is trying to be done here, which is, if there’s a catastrophic event that affects one home or three homes,” said Bob McKee, a lobbyist for the FAC. “But our concern is if we have a truly catastrophic event, a Category 5 hurricane that hits downtown Tampa, hits Miami, we have a terrorist event in a populated area, or we have an act of war. Under those circumstances, we could have a massive impact on the property tax base, the way the property tax system works.”
Sprowls also described the tax package as the “single-largest sales tax cut package in the history of the state.”
One notable proposal left out of the package is DeSantis’ call for a suspension of state gas taxes which was made last year. DeSantis said that his proposal could provide as much as $1 billion in gas tax relief amid continually rising gas prices.
“Today, I am proposing that during session, the Florida Legislature provide more than $1 billion in gas tax relief for Florida families,” DeSantis said. “This will have a positive impact on millions of Floridians.”
So far, there is no indication that the gas tax suspension will be added to any addition of the already-passed package.
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Grant Holcomb is a reporter at The Florida Capital Star and The Star News Network. Follow Grant on Twitter and direct message tips.
Photo “Back to School Shopping” by Daniel Case. CC BY-SA 3.0.
