This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h7063.WMC
DATE: 4/14/2023
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 7063 PCB WMC 23-02 Taxation
SPONSOR(S): Ways & Means Committee, McClain
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY
CHIEF
Orig. Comm.: Ways & Means Committee 23 Y, 0 N LaTorre Aldridge
SUMMARY ANALYSIS
The bill provides for the following tax-related provisions designed to benefit both families and businesses.
For sales taxes, the bill:
• Creates permanent exemptions for specified baby and toddler products and clothes, adult incontinence
products, oral hygiene products, machinery and equipment to produce renewable natural gas, certain
agricultural fencing, and small private investigative agency services.
• Provides a one-year exemption for certain ENERGY STAR certified refrigerators, refrigerator/freezer
combinations, water heaters, and clothes washers and dryers; a one-year exemption for gas ranges
and cooktops, and an estimated 13-month reduction in the business rent tax from 5.5% to 4.5%.
• Creates two 14-day “back-to-school” tax holidays, one in July and August 2023, and one in January
2024, for certain clothing, school supplies, learning aids and puzzles, and personal computers; a 14-
day “disaster preparedness” holiday in May and June of 2023 for specified disaster preparedness
supplies for families and their pets; a three-month “Freedom Summer” tax holiday from Memorial Day
through Labor Day for specified recreational items and activities; and a seven-day “Tool Time” tax
holiday in September for tools and equipment needed in skilled trades.
For property taxes, the bill:
• Makes several changes to expand, clarify, or correct provisions related to homestead benefits for
permanently and totally disabled veterans, first responders, and surviving spouses of either;
Allows an educational facility to qualify for an exemption if they have a bona fide 98-year lease with
nominal payments; and
• Makes technical and clarifying changes to several sections of existing law.
For corporate income tax, the bill:
• Adopts the Internal Revenue Code in effect on January 1, 2023, to maintain conformity with federal
provisions; and
• Creates a tax credit for homebuilders that purchase and install residential graywater systems, and for
companies that purchase machinery and equipment for use in the production of human breast milk
fortifiers.
The bill also delays the imposition of natural gas fuel taxes by two years; provides administrative provisions
related to discretionary sales surtaxes found to be unconstitutional; freezes local communications services tax
rates for three years; changes a population cap for a tourist development tax provision; exempts certain small
business loans from duplicative documentary stamp and intangible tax treatment; clarifies the calculation of a
certain penalty as related to the Florida Tax Credit Program, New Worlds Reading Initiative, and Strong
Families Tax Credit programs; increases the annual cap of the Strong Families Tax Credit to $20 million; and
revises the qualifications to participate in that program.
Staff estimates the total state and local government impact of the bill in fiscal year 2023-24 is -$1,376.7 million
(-$245.2 million recurring). See FISCAL COMMENTS.
STORAGE NAME: h7063.WMC PAGE: 2
DATE: 4/14/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Sales Tax
Florida’s sales and use tax is a six percent levy on retail sales of a wide array of tangible personal
property, admissions, transient lodgings, and commercial real estate rentals
1
, unless expressly
exempted. In addition, Florida authorizes several local option sales taxes that are levied at the county
level on transactions that are subject to the state sales tax. Generally, the sales tax is added to the
price of a taxable good and collected from the purchaser at the time of sale. Sales tax represents the
majority of Florida’s General Revenue (projected 75.5 percent for FY 2022-23)
2
and is administered by
the Department of Revenue (DOR) under ch. 212, F.S.
Authorized in 1982, the Local Government Half-Cent Sales Tax Program generates the largest amount
of revenue for local governments among the state-shared revenue sources currently authorized by the
Legislature.
3
It distributes a portion of state sales tax revenue via three separate distributions to eligible
county or municipal governments. Additionally, the program distributes a portion of communications
services tax revenue to eligible local governments. Allocation formulas serve as the basis for these
separate distributions. The program’s primary purpose is to provide relief from ad valorem and utility
taxes in addition to providing counties and municipalities with revenues for local programs.
4
Permanent Sales Tax Exemptions
Baby and Toddler Products
Current Situation
Florida is home to more than one million children under age five, and welcomes nearly 600 newborns
each day.
5
The Legislature previously enacted sales tax exemptions for children’s clothing and shoes, and
children’s diapers, both from July 1, 2022 through June 30, 2023.
6
Aside from this temporary
exemption, most baby and toddler essentials are subject to sales tax in the state of Florida.
Effect of Proposed Changes
The bill provides a permanent exemption from sales tax on the retail sale of the following baby and
toddler products:
Baby cribs, including baby playpens and baby play yards;
Baby strollers;
Baby safety gates;
Baby monitors;
Child safety cabinet locks and latches and electrical socket covers;
1
Commercial real estate rentals are subject to a 5.5% sales tax pursuant to s. 212.031(1)(c), F.S.
2
The Office of Economic and Demographic Research, General Revenue Consensus Estimating Conference Comparison Report, p. 1,
available at http://edr.state.fl.us/Content/conferences/generalrevenue/grpackage.pdf (last visited April 8, 2023).
3
Office of Economic and Demographic Research, Florida Local Government Financial Information Handbook 2022, p. 55, available at
http://edr.state.fl.us/Content/local-government/reports/lgfih22.pdf (last visited April 8, 2023).
4
Id.
5
Econographic News: Florida Vital Statistics, available at http://edr.state.fl.us/Content/population-
demographics/reports/econographicnews-2022-v2.pdf (last visited March 3, 2023);
Florida Population by Age Group, available at http://edr.state.fl.us/content/population-demographics/data/pop_census_day.pdf (last
visited March 3, 2023).
6
Chapter 2022-156, L.O.F. STORAGE NAME: h7063.WMC PAGE: 3
DATE: 4/14/2023
Bicycle child carrier seats and trailers designed for carrying young children, including any
adaptors and accessories for these seats and trailers;
Baby exercisers, jumpers, bouncer seats and swings;
Breast pumps, bottle sterilizers, baby bottles and nipples, pacifiers, and teething rings;
Baby wipes;
Changing tables and changing pads;
Children’s diapers including single-use diapers, reusable diapers, and reusable diaper inserts;
and
Baby and toddler clothing, apparel, and shoes, primarily intended for and marketed for children
age 5 or younger. Baby and toddler clothing size 5T and smaller and baby and toddler shoes
size 13T and smaller are presumed to be primarily intended for and marketed for children age 5
or younger.
Oral Hygiene Products
Current Situation
Certain medical products and supplies are exempt from sales tax, including supplies or medicine
dispensed according to a prescription and other non-prescription common household remedies used in
the cure, mitigation, treatment, or prevention of illness or disease.
7
Alcohol wipes, bandages, and
gauze are examples of common household remedies exempt from sales tax. Cosmetics
8
and toilet
articles
9
are specifically excluded from the common household remedy exemption, notwithstanding the
presence of medicinal ingredients therein.
The Department of Business and Professional Regulation (DBPR) is responsible for prescribing and
approving a list of common household remedies that qualify for the exemption, which is certified by
DOR from time to time and included in the rules promulgated by DOR.
10
Certain oral hygiene products, such as toothpaste and mouthwash, are considered cosmetics and toilet
articles and are therefore excluded from the common household remedy exemption. Cosmetics and
toilet articles are only exempt when dispensed according to an individual prescription or prescriptions
written by a licensed practitioner authorized to prescribe medicinal drugs.
Effect of Proposed Changes
The bill provides a permanent exemption from sales tax on the retail sale of oral hygiene products. Oral
hygiene products included in the exemption are:
Electric and manual toothbrushes;
Toothpaste;
Dental floss;
Dental picks;
Oral irrigators; and
Mouthwash.
Adult Incontinence Products
7
Section 212.08(2)(a), F.S.
8
Section 212.08(2)(b)2., F.S., defines “cosmetics” as articles intended to be rubbed, poured, sprinkled, or sprayed on, introduced into,
or otherwise applied to the human body for cleansing, beautifying, promoting attractiveness, or altering the appearance and also means
articles intended for use as a compound of any such articles, including, but not limited to, cold creams, suntan lotions, makeup, and
body lotions.
9
Section 212.08(2)(b)3., F.S., defines “toilet articles” as any article advertised or held out for sale for grooming purposes and those
articles that are customarily used for grooming purposes, regardless of the name by which they may be known, including, but not
limited to, soap, toothpaste, hair spray, shaving products, colognes, perfumes, shampoo, deodorant, and mouthwash.
10
Form DR-46NT, Nontaxable Medical Items and General Grocery List (R. 01/22), available at
https://floridarevenue.com/Forms_library/current/dr46nt.pdf (last visited April 8, 2023). STORAGE NAME: h7063.WMC PAGE: 4
DATE: 4/14/2023
Current Situation
Adult diapers and incontinence products are not currently included in the list of medical products and
supplies which are exempt from sales tax in Florida, however, diapers for children and adults have
been temporarily exempted during certain sales tax holidays.
11
Of the 45 states that impose a sales tax,
12
California, Colorado, Connecticut, Indiana, Iowa, Louisiana,
Maryland, Massachusetts, Minnesota, New Jersey, New York, Pennsylvania, Rhode Island, Vermont,
Virginia, and the District of Columbia do not subject the sale of diapers to state sales tax.
13
North
Dakota exempts diapers used for incontinence, but not baby diapers.
14
Effect of Proposed Changes
The bill provides a permanent exemption from sales tax on the retail sale of adult diapers, incontinence
undergarments, incontinence pads, and incontinence liners for human use.
Fencing
Current Situation
Florida exempts from sales tax many items used for agricultural purposes, including fertilizers, animal
health products, portable containers, certain generators, bailing wire and twine, etc.
15
Additionally, in
2022 the legislature amended s. 212.08(5)(a), F.S., to exempt from sales tax: hog wire and barbed wire
fencing, including gates and materials used to construct or repair such fencing, used in agricultural
production on lands classified as agricultural under s. 193.461, F.S.
16
Currently, materials used to construct or repair permanent or temporary fencing used to contain cattle,
including wooden fencing, electric fencing, and corral panels, are not exempt from sales tax.
Effect of Proposed Changes
The bill expands the exemption under s. 212.08(5)(a), F.S., to include materials used to construct or
repair permanent or temporary fencing used to contain cattle and includes wooden fencing, electric
fencing, and corral panels.
Renewable Natural Gas Machinery and Equipment
Current Situation
Renewable natural gas is made from biogas (the gaseous product of the decomposition of organic
matter) that has been processed to purity standards and can be used as transportation fuel or liquefied
natural gas. However, to fuel vehicles, the biogas must be processed to a higher purity standard
resulting in the renewable gas having a higher content of methane than raw biogas, which makes it
comparable to conventional natural gas. This makes the renewable natural gas suitable in applications
that require pipeline-quality gas such as vehicles.
17
11
See, e.g., Department of Revenue, 2022 Back-to-School Sales Tax Holiday Tax Information Publication, p.4, available at
https://floridarevenue.com/taxes/tips/Documents/TIP_22A01-08.pdf (last visited March 24, 2023).
12
Alaska, Delaware, Montana, New Hampshire, and Oregon do not levy a state sales tax. See Tax Foundation, State and Local Sales
Tax Rates (2020), available at https://files.taxfoundation.org/20200115132659/State-and-Local-Sales-Tax-Rates2020.pdf (last visited
March 24, 2023).
13
National Diaper Bank Network, Sales Tax on Diaper Purchases by State, available at https://nationaldiaperbanknetwork.org/diaper-
tax/ (last visited March 24, 2023).
14
Id.
15
Section 212.08(5)(a), F.S.
16
Chapter 2022-97, L.O.F., section 23.
17
United States Department of Energy, Alternative Fuels Data Center, Renewable Natural Gas Production, at
https://afdc.energy.gov/fuels/natural_gas_renewable.html (last visited March 29, 2023). STORAGE NAME: h7063.WMC PAGE: 5
DATE: 4/14/2023
Three main sources of biogas are landfills, livestock operations and wastewater treatment sites. In
landfills, the digestion process takes place in the ground rather than in an anaerobic digester, which is
a series of processes in which microorganisms break down biodegradable material in the absence of
oxygen.
18
As of 2021, there were 548 operational landfill gas projects in the country. At livestock
operations, animal manure is collected and run through an anaerobic digester to stabilize and optimize
methane production. The result is biogas that can be processed into renewable natural gas and used to
fuel gas vehicles or produce electricity. As of 2022, there are 331 livestock farms utilizing anaerobic
digester systems in the country, including three in Florida.
19
At wastewater treatment plants, biogas is
produced by digesting the solids removed in the wastewater treatment process. Approximately 1,300
wastewater treatment plants in the country have anaerobic digesters.
20
Effect of Proposed Changes
The bill provides a permanent exemption from sales tax for machinery and equipment used at a fixed
location for the production, storage, transportation, compression, or blending of renewable natural gas.
The bill defines “renewable natural gas” as an anaerobically generated biogas, landfill gas, or
wastewater treatment gas refined to a methane content of 90 percent or greater, which may be used as
transportation fuel or for electric generation or is of a quality capable of being injected into a natural gas
pipeline. The bill specifies that any reference to natural gas in ch. 212, F.S., includes renewable natural
gas.
The bill provides that purchasers of machinery and equipment qualifying for this exemption must furnish
the vendor with an affidavit stating that the item or items to be exempted are for the production,
storage, transportation, compression, or blending of renewable natural gas. Purchasers with self-
accrual authority
21
are not required to provide an affidavit; however, the purchaser must maintain all
documentation necessary to prove the exempt status of purchases.
A person furnishing a false affidavit to the vendor in order to evade payment of the sales tax is liable for
payment of the tax plus a mandatory penalty of 200 percent of the tax. A violation of this section is a
third-degree felony.
22
Private Investigative Services
Current Situation
Charges for certain detective, burglar protection, and other protection services listed under specific
North American Industry Classification System (NAICS) numbers, including investigative services,
security guards and patrol services, armored car services, and security systems services, except
locksmiths, are currently subject to sales tax.
23
18
Id.
19
United States Environmental Protection Agency, Livestock Anaerobic Digester Database, at https://www.epa.gov/agstar/livestock-
anaerobic-digester-database (last visited March 29, 2023).
20
United States Department of Energy, Alternative Fuels Data Center, Renewable Natural Gas Production, at
https://afdc.energy.gov/fuels/natural_gas_renewable.html (last visited March 29, 2023).
21
Section 212.183, F.S. The Department of Revenue is authorized to provide by rule for self-accrual of the sales tax under one or more
of the following seven circumstances: where authorized by law for holders of direct pay permits; where tangible personal property is
subject to tax on a prorated basis, and the proration factor is based upon characteristics of the purchaser; where the taxable status of
types of tangible personal property will be known only upon use; for commercial renters where the purchaser rents from a number of
independent property owners who, apart from rentals to the purchaser in question, would otherwise not be obligated to register as
dealers; where the purchaser makes purchases in excess of $10 million per year of tangible personal property in any county; when the
purchaser makes purchases of promotional materials defined in s. 212.06(11), F.S., and at the time of purchase, the purchaser does
not know whether the materials will be exported outside the state; and for commercial rentals where the purchaser, who is required to
remit sales tax electronically pursuant to s. 213.755, F.S., rents from a number of independent property owners.
22
Section 212.085, F.S. A third degree felony is generally punishable by not more than five years in state prison and a fine not
exceeding $5,000. Sections 775.082 and 775.083, F.S.
23
Section 212.05(1)(i)1., F.S. STORAGE NAME: h7063.WMC PAGE: 6
DATE: 4/14/2023
The Division of Licensing within the Department of Agriculture and Consumer Services (DACS)
oversees the regulation of licensing of private investigative services.
24
As of December 31, 2022, the
Division has issued 2,721 private investigative agency licenses and 7,240 private investigator
licenses.
25
A “private investigator” is defined as any individual who, for consideration, advertises as providing or
performs private investigations.
26
A “private investigative agency” means any person who, for
consideration, advertises as providing or is engaged in the business of furnishing privation
investigations.
27
“Private investigation” is defined as an investigation to obtain information on any of the
following matters:
Crime or wrongs done or threatened against the United States or any state or territory of the
United States, when operating under express written authority of the governmental official
responsible for authorizing such investigation.
The identity, habits, conduct, movements, whereabouts, affiliations, associations, transactions,
reputation, or character of any society, person, or group of persons.
The credibility of witnesses or other persons.
The whereabouts of missing persons, owners of unclaimed property or escheated property, or
heirs to estates.
The location or recovery of lost or stolen property.
The causes and origin of, or responsibility for, fires, libels, slanders, losses, accidents, damage,
or injuries to real or personal property.
The business of securing evidence to be used before investigating committees or boards of
award or arbitration or in the trial of civil or criminal cases and the preparation thereof.
28
Applicants for licensure as a private investigator must complete and submit an application to DACS and
meet certain requirements. An applicant must:
Be at least 18 years old;
Be one of the following:
- A United States citizen,
- A permanent legal resident, or
- A holder of a work visa from the United States Citizenship and Immigration Service;
Have no disqualifying criminal history;
Be of good moral character;
Have no history of:
- Mental illness,
- Alcohol abuse, or
- Substance abuse; and
Submit an application with certain identifying information;
29
and
Complete 40 hours of required training and submit proof thereof to DACS.
30
Any person, firm, company, partnership, or corporation which engages in business as a private
investigative agency shall have a Class “A” license.
31
To become a private investigator in Florida, a
Class “C” Private Investigator license is required.
32
An applicant for the Class "C" Private Investigator
license must have two years of lawfully gained, verifiable, full-time experience to qualify for the
24
Chapter 493, F.S.
25
Department of Agriculture and Consumer Services, Division of Licensing Statistical Reports (as of February 28, 2023), available at
https://www.fdacs.gov/Divisions-Offices/Licensing/Statistical-Reports (last visited March 29, 2023).
26
Section 493.6101(16), F.S.
27
Section 493.6101(15), F.S.
28
Section 493.6101(17), F.S.
29
Section 493.6105, F.S.
30
Section 493.6303(4)(a), F.S.
31
Section 493.6201(1), F.S.
32
Section 493.6201(5), F.S. STORAGE NAME: h7063.WMC PAGE: 7
DATE: 4/14/2023
license.
33
In order to carry a firearm in the course of performing such duties, the licensee must also
obtain a Class “G” Statewide Firearm license in addition to the Class “C” Private Investigator license.
34
Effect of Proposed Changes
The bill exempts charges for investigative services provided by a “small private investigative agency”
from the sales and use tax.
The bill defines the term "small private investigative agency" as a private investigator licensed as under
s. 493.6201, F.S., that:
Employs three or fewer full-time or part-time employees, including those performing services
pursuant to an employment leasing arrangement as defined in s. 468.520(4), F.S., and
During the previous calendar year, performed private investigation services otherwise taxable
under ch. 212, F.S., in which the charges for the services performed were less than $150,000
for all its businesses related through common ownership.
The exemption may not apply in the first calendar year that an agency conducts sales of services
taxable under ch. 212, F.S.
Temporary Sales Tax Exemptions
Energy Star Appliances
Current Situation
The federal government, through the Environmental Protection Agency, certifies a number of products
for their efficiency under the ENERGY STAR program.
35
Products in the ENERGY STAR program are
normally affixed with a label noting their certification under the applicable program.
36
In 2006, Florida provided a one-week sales tax exemption on specified energy efficient products priced
under $1,500 which met or exceeded the requirements of the federal ENERGY STAR program and
were sold for noncommercial home or personal use.
37
In 2014, Florida provided a one-week sales tax exemption on the first $1,500 of the sales price of
specified new ENERGY STAR products or WaterSense
38
products.
39
A person was limited to a single
purchase for each specific type of item listed above with a sales price over $500 during the holiday. A
second purchase of the same type of product was subject to tax on the entire price. There was no
requirement that the purchase be for personal use, or any specific prohibition against purchases for
commercial use beyond the limit on the number of items that could be purchased without paying tax.
In 2022, Florida provided a one-year sales tax exemption on the retail sale for noncommercial use of
ENERGY STAR certified refrigerators selling for $3,000 or less, and ENERGY STAR certified water
heaters, and clothes washers or dryers, selling for $1,500 or less.
40
33
Section 493.6203, F.S.
34
Section 493.6115(2), F.S.
35
Information about this program is available at https://www.energystar.gov/about (last accessed February 27, 2023).
36
See https://www.energystar.gov/products for more information about labeling and qualifying products (last accessed February 27,
2023).
37
Section 6, Ch. 2006-230, L.O.F. The items exempted were refrigerators, dishwashers, clothes washers, air conditioners, ceiling fans,
light bulbs, dehumidifiers, and thermostats.
38
The federal WaterSense program certifies items that are water-efficient. Information about this program is available at
https://www.epa.gov/watersense (last visited February 27, 2023)
39
Section 21, Ch. 2014-38, L.O.F. The ENERGY STAR items exempted were room air conditioners, air purifiers, ceiling fans, clothes
washers, clothes dryers, dehumidifiers, dishwashers, freezers, refrigerators, water heaters, swimming pool pumps, and light bulbs. The
WaterSense items exempted were bathroom sink faucets, faucet accessories, high-efficiency toilets and urinals, showerheads, and
weather or sensor-based irrigation controllers.
40
Section 49, Ch. 2022-97, L.O.F. STORAGE NAME: h7063.WMC PAGE: 8
DATE: 4/14/2023
Effect of Proposed Changes
The bill creates a one-year sales tax exemption from July 1, 2023, through June 30, 2024, on the retail
sale for noncommercial use of these ENERGY STAR appliances:
Refrigerators or combined refrigerator/freezers selling for $4,500 or less; and
Water heaters, washing machines, and clothes dryers selling for $1,500 or less.
Gas Ranges and Cooktops
Current Situation
The U.S. Energy Information Administration estimates that eight percent of Florida households use
natural gas cooking appliances.
41
On average, natural gas is cheaper than electricity.
42
Additionally,
gas ranges and cooktops allow for rapid temperature changes while cooking.
43
Currently, the retail sale of gas ranges and cooktops is not exempt from sales tax.
Effect of Proposed Changes
The bill provides a one-year sales tax exemption, from July 1, 2023 to June 30, 2024, on the retail sale
of gas ranges and cooktops, which are defined as any range or cooktop fueled by combustible gas
such as natural gas, propane, butane, liquefied petroleum gas, or other flammable gas. It does not
include outdoor gas grills, camping stoves, or other portable stoves.
Business Rent Tax Rate Reduction
Current Situation
Since 1969, Florida has imposed a sales tax on the total rent charged under a commercial lease of real
property.
44
Sales tax is due at the rate of 5.5 percent on the total rent paid for the right to use or occupy
commercial real property. Local option sales surtaxes can also apply.
45
If the tenant makes payments
such as mortgage, ad valorem taxes, or insurance on behalf of the property owner, such payments are
also classified as rent and are subject to the tax.
Commercial real property includes land, buildings, office or retail space, convention or meeting rooms,
airport tie-downs, and parking and docking spaces. It may also include licenses granting the use of real
property for the placement of vending, amusement, or newspaper machines. However, there are
numerous commercial rentals that are not subject to sales tax, including:
Rentals of real property assessed as agricultural;
Rentals to nonprofit organizations that hold a current Florida consumer's certificate of
exemption;
Rentals to federal, state, county, or city government agencies;
Properties used exclusively as dwelling units; and
Public streets or roads used for transportation purposes.
In 2021, the legislature approved a reduction to the business rent tax from 5.5% to 2%, effective the
first day of the second month after the Unemployment Compensation Trust Fund reaches its pre-
41
U.S. Energy Information Administration, Highlights for Appliances in U.S. Homes by State, 2020, available at
https://www.eia.gov/consumption/residential/data/2020/state/pdf/State%20Appliances.pdf (last visited February 27, 2023).
42
U.S. Energy Information Administration, Florida State Energy Profile, available at https://www.eia.gov/state/print.php?sid=FL (last
visited February 27, 2023).
43
Whirlpool, Gas vs. Electric Stoves: Which is Best?, available at https://www.whirlpool.com/blog/kitchen/electric-vs-gas-ranges.html
(last visited February 27, 2023).
44
Chapter 1969-222, Laws of Fla.
45
Section 212.031, F.S., and Rule 12A-1.070, F.A.C. STORAGE NAME: h7063.WMC PAGE: 9
DATE: 4/14/2023
pandemic balance, which is estimated to happen in May 2024, resulting in the business rent tax rate
lowering to 2% beginning August 1, 2024.
46
Florida is the only state to charge sales tax on commercial rentals of real property.
Effect of Proposed Changes
The bill reduces the business rent tax from 5.5% to 4.5%, effective July 1, 2023.
Unconstitutional Discretionary Sales Surtaxes
Current Situation
Discretionary Sales Surtaxes
Counties have been granted limited authority to levy a discretionary sales surtaxes for specific
purposes on transactions subject to state sales tax.
47
These purposes include:
Operating a transportation system in a charter county;
48
Financing local government infrastructure projects;
49
Providing additional revenue for counties having less than 50,000 residents as of April 1,
1992;
50
Providing medical care for indigent persons;
51
Funding trauma centers;
52
Operating, maintaining, and administering a county public general hospital;
53
Constructing and renovating schools;
54
Providing emergency fire rescue services and facilities; and
55
Funding pension liability shortfalls.
56
These surtaxes are generally levied through an ordinance enacted by the governing board of the
county,
57
and are generally subject to approval by the voters in the county.
58
The Small County Surtax
is enacted by an extraordinary vote of the members of the county governing authority and is only
subject to referendum if the surtax will be used to service bond indebtedness.
59
The Indigent Care and
Trauma Center Surtax and the County Public Hospital Surtax can be levied either by an extraordinary
vote of the governing body or by referendum.
60
The Charter County and Regional Transportation System Surtax can be levied through either a county
ordinance or a charter amendment, either of which must be approved by a majority vote of the
electorate of the county.
61
46
The Office of Economic & Demographic Research, Unemployment Compensation Trust Fund Forecast, available at
http://edr.state.fl.us/Content/conferences/unemployment-compensation-trust-fund/March2023ForecastSummary.pdf (last visited Apr. 4,
2023)
47
Sections 212.054, 212.055, F.S.
48
Section 212.055(1), F.S.
49
Section 212.055(2), F.S.
50
Section 212.055(3), F.S. Note that the small county surtax may be levied by extraordinary vote of the county governing board if the
proceeds are to be expended only for operating purposes.
51
Section 212.055(4)(a), F.S. (for counties with more than 800,000 residents); s. 212.055(7), F.S. (for counties with less than 800,000
residents).
52
Section 212.055(4)(b), F.S.
53
Section 212.055(5), F.S.
54
Section 212.055(6), F.S.
55
Section 212.055(8), F.S.
56
Section 212.055(9), F.S.
57
Section 212.054(6), F.S.
58
Section 212.055(1), (2), (6), (7), (8), and (9), F.S.
59
Section 212.055(3)(a), F.S.
60
Section 212.055(4) and (5), F.S.
61
Section 212.055(1)(a), F.S. STORAGE NAME: h7063.WMC PAGE: 10
DATE: 4/14/2023
Currently, only one county in Florida does not levy a discretionary sales surtax.
62
The other 66 counties
levy surtaxes ranging from a total of 0.5% to 1.5%.
There is no mechanism in statute to address the remedy for a surtax that is collected but later
adjudicated to be unconstitutional.
Hillsborough County Regional Transportation Tax
In 2018, Hillsborough County voters approved a one-cent sales tax in a charter amendment under
section 212.055(1), F.S., to be levied for thirty years beginning January 1, 2019, and to be used for a
variety of specific transportation projects. Collections began January 1, 2019.
In December 2018,
63
February 2019,
64
and March 2019,
65
lawsuits were filed questioning whether the
surtax was valid. In June 2019, the first two cases were consolidated and a circuit court judge held that
the restrictions on how the funding would be used were unconstitutional, but those restrictions could be
severed and the surtax was otherwise valid.
66
Further appeal was made to the Florida Supreme Court, which held in March 2021 that the surtax was
unconstitutional, as the lower court had found, but that the unconstitutional provision could not be
severed and “the whole…is invalid.”
67
The bond validation and declaratory judgment entered by the
lower court were reversed.
68
The surtax was no longer collected beginning March 16, 2021.
69
No
remedy was provided by the Florida Supreme Court for the disposition of the surtax that was collected
for more than 26 months.
Hillsborough County filed a motion for supplemental relief in the circuit court of original jurisdiction
(Hillsborough County Circuit Court), requesting “an order setting forth procedures and requirements for
disposition of surtax revenues that were collected, but not yet expended, as of the time when the
Department of Revenue is able to implement the cessation of collection of the surtax after the Florida
Supreme Court’s decision became final.”
70
The request was denied in March 2022, noting “avenues for
distributing or using those funds is under consideration in the Legislature, who is likely in the best
position to address the issue.”
71
Section 155 of ch. 2022-156, L.O.F., provided that any funds associated with the lawsuit were to be
transferred to DOR, to be deposited in a separate account in the Discretionary Sales Surtax Clearing
Trust Fund, pursuant to s. 212.054, F.S. On July 7, 2022, the Hillsborough County Circuit Court issued
a final judgement that ordered the Hillsborough County Clerk of the Court to collect and transfer all
surtax revenues received under the invalid surtax to DOR
72
Pursuant to that order, the Clerk of the
Court for Hillsborough County filed notice that $569,329,241.11 was transferred to DOR, comprising all
62
Florida Department of Revenue, Form DR-15DSS, Discretionary Sales Surtax Information for Calendar Year 2023, (R. 11/22),
available at https://floridarevenue.com/Forms_library/current/dr15dss.pdf (last visited April 7, 2023).
63
Stacy White v. Hillsborough County, Case No. 18-CA-011749 (13th Cir. 2018).
64
Hillsborough County, Florida v. State of Florida, Case No. 19-CA-001382 (13th Cir. 2019).
65
Robert Emerson v. Hillsborough County, Case No. 19-CA-002483 (13th Cir. 2019).
66
Stacy White v. Hillsborough County, Case No. 18-CA-011749 (13th Cir. 2018); Order Granting, in Part, and Denying, In Part,
Plaintiff's Request For Summary Judgment; Order Granting, In Part, And Denying, In Part, Defendant’s Request For Summary
Judgment, and Order To Amend The County Charter.
67
Robert Emerson, et al. vs. Hillsborough County, Florida, etc., et al., No. SC2019-1250 (Fla.) and Stacy White vs. Hillsborough
County, Florida, etc., et al., No. SC2019-1343 (Fla.), opinion available at https://efactssc-
public.flcourts.org/casedocuments/2019/1250/2019-1250_miscdoc_366433_e05.pdf (last visited April 7, 2023).
68
Id.
69
Florida Department of Revenue, Taxpayer Information Publication #21A01-01, Hillsborough County 1% Transportation Discretionary
Sale Surtax Rules Unconstitutional by the Florida Supreme Court, available at
https://floridarevenue.com/taxes/tips/Documents/TIP_21A01-01.pdf (last visited April 7, 2023).
70
Stacy White v. Hillsborough County, Case No. 18-CA-011749 (13th Cir. 2018); Government Defendants’ Post-Judgment Motion for
Supplemental Relief Providing Procedure for Disposition of Surtax Revenue, filed April 29, 2021.
71
Stacy White v. Hillsborough County, Case No. 18-CA-011749 (13th Cir. 2018); Final Order Denying Defendants’ Post-Judgment
Motion for Supplemental Relief; March 25, 2022.
72
Stacy White v. Hillsborough County, Case No. 18-CA-011749 (13th Cir. 2018); Final Judgment on Supplemental Relief Claim; July 7,
2022. STORAGE NAME: h7063.WMC PAGE: 11
DATE: 4/14/2023
surtax revenues received by the relevant parties.
73
An additional transfer of $453,602.83 was made in
August 2022, comprising interest earned on the balance prior to transfer.
74
The class action lawsuit in Hillsborough County is still pending, and an additional class action lawsuit
was filed in Leon County shortly after the Supreme Court’s decision in 2021.
75
The Hillsborough
County suit has had no meaningful action since before the Supreme Court decision in 2021. The Leon
County suit held a hearing January 4, 2023, in which the judge stated his intention to dismiss the case
without prejudice as moot, because the “Legislature has passed a bill resolving – has passed a law
resolving how these funds will be used…”
76
Effect of Proposed Changes
The bill provides for a temporary suspension of certain discretionary sales surtaxes levied in a county
when a discretionary sales surtax has been collected, but later adjudicated to be unconstitutional, and
the proceeds from the invalid surtax have not been expended.
Sales Tax Holidays
Since 1998, the Legislature has enacted more than two dozen temporary periods (commonly called
“sales tax holidays”) during which certain household items, household appliances, clothing, footwear,
books, and/or school supply items were exempted from the state sales tax and county discretionary
sales surtaxes.
Back to School Sales Tax Holiday
Current Situation
Florida has enacted a “back-to-school” sales tax holiday twenty times since 1998. The length of the
exemption periods has varied from three to ten days. The type and value of exempt items has also
varied.
73
Stacy White v. Hillsborough County, Case No. 18-CA-011749 (13th Cir. 2018); Clerk’s Notice of Compliance with Final Judgment on
Supplemental Relief Claim.
74
Stacy White v. Hillsborough County, Case No. 18-CA-011749 (13th Cir. 2018); Clerk’s Notice of Additional Transfer to Florida
Department of Revenue.
75
Robert Emerson vs. Florida Department of Revenue and Hillsborough County (2021 CA 000487, 2nd Cir. 2021).
76
Robert Emerson vs. Florida Department of Revenue and Hillsborough County (2021 CA 000487, 2nd Cir. 2021); Hearing Transcript
filed January 26, 2023.
STORAGE NAME: h7063.WMC PAGE: 12
DATE: 4/14/2023
The following table describes the history of back-to-school sales tax holidays in Florida.
Effect of Proposed Changes
The bill provides for a sales tax holiday from July 24, 2023, through August 6, 2023, and from January
1, 2024 through January 14, 2024. During the holiday, the following items that cost $100 or less are
exempt from the state sales tax and county discretionary sales surtaxes:
Clothing (defined as an “article of wearing apparel intended to be worn on or about the human
body,” but excluding watches, watchbands, jewelry, umbrellas, and handkerchiefs);
Footwear (excluding skis, swim fins, roller blades, and skates);
Wallets; and
Bags (including handbags, backpacks, fanny packs, and diaper bags, but excluding briefcases,
suitcases, and other garment bags).
The bill also exempts various “school supplies” that cost $50 or less per item during the holiday, and
learning aids and jigsaw puzzles that cost $30 or less per item. “Learning aids” are defined as
“flashcards or other learning cards, matching or other memory games, puzzle books and search-and-
Dates Length
TAX EXEMPTION THRESHOLDS
Clothing/
Footwear
Wallets/
Bags
Books/
Learning
Aids/ Puzzles
Computers
School
Supplies
August 15-21, 1998 7 days $50 or less N/A N/A N/A N/A
July 31-August 8,
1999
9 days $100 or less $100 or less N/A N/A N/A
July 29-August 6,
2000
9 days $100 or less $100 or less N/A N/A N/A
July 28-August 5,
2001
9 days $50 or less $50 or less N/A N/A $10 or less
July 24-August 1,
2004
9 days $50 or less $50 or less $50 or less
(Books)
N/A $10 or less
July 23-31, 2005 9 days $50 or less $50 or less $50 or less
(Books)
N/A $10 or less
July 22-30, 2006 9 days $50 or less $50 or less $50 or less
(Books)
N/A $10 or less
August 4-13, 2007 10 days $50 or less $50 or less $50 or less
(Books)
N/A $10 or less
August 13-15, 2010 3 days $50 or less $50 or less $50 or less
(Books)
N/A $10 or less
August 12-14, 2011 3 days $75 or less $75 or less N/A N/A $15 or less
August 3-5, 2012 3 days $75 or less $75 or less N/A N/A $15 or less
August 2-4, 2013 3 days $75 or less $75 or less N/A $750 or less $15 or less
August 1-3, 2014 3 days $100 or less $100 or less N/A First $750 of
the sales price
$15 or less
August 7-16, 2015 10 days $100 or less $100 or less N/A First $750 of
the sales price
$15 or less
August 5-7, 2016 3 days $60 or less $60 or less N/A N/A $15 or less
August 4-6, 2017 3 days $60 or less $60 or less N/A $750 or less $15 or less
August 3-5, 2018 3 days $60 or less $60 or less N/A N/A $15 or less
August 2-6, 2019 5 days $60 or less $60 or less N/A $1,000 or less $15 or less
August 7-9, 2020 3 days $60 or less $60 or less N/A First $1,000 of
the sales price
$15 or less
July 31-August 9,
2021
10 days $60 or less $60 or less N/A First $1,000 of
the sales price
$15 or less
July 25-August 7,
2022
14 days $100 or less $100 or less $30 (Learning
Aids/Puzzles)
$1,500 or less $50 or less STORAGE NAME: h7063.WMC PAGE: 13
DATE: 4/14/2023
find books, interactive or electronic books and toys intended to teach reading or math skills, and
stacking or nesting blocks or sets.”
Additionally, exempted are personal computers and related accessories with a sales price of $1,500 or
less which are purchased for noncommercial home or personal use. This includes tablets, laptops,
monitors, input devices, and non-recreational software. Cell phones, furniture and devices or software
intended primarily for recreational use are not exempted.
The “back-to-school” sales tax holiday applies at the option of the dealer if less than five percent of the
dealer’s gross sales of tangible personal property in the prior calendar year are comprised of items that
are exempt under the holiday. If a qualifying dealer chooses not to participate in the tax holiday, by July
17, 2023, for the tax holiday beginning July 24, 2023, and by December 23, 2023, for the tax holiday
beginning January 1, 2024, the dealer must notify DOR in writing of its election to collect sales tax
during the holiday and must post a copy of that notice in a conspicuous location at its place of business.
Disaster Preparedness Sales Tax Holiday
Current Situation
The Florida Office of Insurance Regulation estimated insured losses of over $14.4 billion due to
Hurricanes Ian and Nicole in 2022,
77
$9.1 billion due to Hurricane Michael in 2018,
78
$20.7 billion due to
Hurricane Irma in 2017,
79
$1.3 billion due to hurricanes Hermine and Mathew in 2016,
80
$25 billion due
to four hurricanes in 2004, and $10.8 billion due to four hurricanes in 2005.
81
Tropical Storm Fay was
estimated to have resulted in $242 million of damage in 2008.
82
The Florida Division of Emergency
Management recommends having a disaster supply kit with items such as a battery operated radio,
flashlight, batteries, pet care items, and first-aid kit.
83
Since 2006, the Legislature has enacted nine sales tax holidays related to disaster preparedness.
During these holidays, the following items were exempted as indicated:
77
Florida Office of Insurance Regulation, Catastrophe Report, available at:
https://www.floir.com/home/ian($13.9 billion) and https://www.floir.com/home/nicole ($506.7 million) (last visited April 6, 2023).
78
Florida Office of Insurance Regulation, Catastrophe Report, available at:
https://floir.com/Office/HurricaneSeason/HurricaneMichaelClaimsData.aspx(last visited April 6, 2023).
79
Florida Office of Insurance Regulation, Catastrophe Report, available at:
https://www.floir.com/Office/HurricaneSeason/HurricaneIrmaClaimsData.aspx (last visited April 6, 2023).
80
Florida Office of Insurance Regulation, Catastrophe Report, available at:
https://floir.com/Office/HurricaneSeason/HurricaneMatthewClaimsData.aspx and
https://floir.com/Office/HurricaneSeason/HurricaneHermineClaimsData.aspx (last visited April 6, 2023).
81
Florida Office of Insurance Regulation, Florida Office of Insurance Regulation Hurricane Summary Data, available at:
http://www.floir.com/siteDocuments/HurricaneSummary20042005.pdf (last visited February 26, 2023).
82
Florida Office of Insurance Regulation, Florida Office of Insurance Regulation Hurricane Summary Data, available at:
http://www.floir.com/siteDocuments/HurricaneSummary2008.pdf (last visited February 26, 2023).
83
Florida Division of Emergency Management, Disaster Supply Kit Checklist, available at:
https://www.floridadisaster.org/planprepare/hurricane-supply-checklist/ (last visited February 26, 2023). STORAGE NAME: h7063.WMC PAGE: 14
DATE: 4/14/2023
* This holiday also included cell phone batteries ($60 or less), cell phone charger ($40 or less), storm shutters ($200 or less),
carbon monoxide detectors ($75 or less), and any combination of items exempt under the holiday or existing law which were
fold together for $75 or less.
** This holiday included an exemption for first aid kits selling for $30 or less; however, these items are always exempt under s.
212.08(2)(a), F.S.; see form DR-46NT, Nontaxable Medical Items and General Grocery List, available at:
http://floridarevenue.com/Forms_library/current/dr46nt.pdf.
*** This holiday also included portable power banks selling for $60 or less.
**** This holiday also included portable power banks selling for $60 or less, smoke detectors, smoke alarms, fire extinguishers,
or carbon monoxide detectors selling for $70 or less; and specified items necessary for the evacuation of household pets, with
item thresholds ranging from $2 (wet pet food) to $100 (portable kennels or carriers).
Effect of Proposed Changes
The bill provides for a fourteen-day sales tax holiday from May 27, 2023, through June 9, 2023, for
specified items related to disaster preparedness. During the sales tax holiday, the following items are
exempt from the state sales tax and county discretionary sales surtaxes:
A portable self-powered light source selling for $40 or less;
A portable self-powered radio, two-way radio, or weather-band radio selling for $50 or less;
A tarpaulin or other flexible waterproof sheeting selling for $100 or less;
An item normally sold as, or generally advertised as, a ground anchor system or tie-down kit
selling for $100 or less;
A gas or diesel fuel tank selling for $50 or less;
A package of AA-cell, AAA-cell, C-cell, D-cell, 6-volt, or 9-volt batteries, excluding automobile
and boat batteries, selling for $50 or less;
A nonelectric food storage cooler selling for $60 or less;
A portable generator used to provide light or communications or preserve food in the event of a
power outage selling for $3,000 or less;
Reusable ice selling for $20 or less;
A portable power bank selling for $60 or less;
A smoke detector or smoke alarm selling for $70 or less;
A fire extinguisher selling for $70 or less;
A carbon monoxide detector selling for $70 or less; and
Supplies necessary for the evacuation of household pets. For purposes of this exemption,
necessary supplies are the non-commercial purchase of:
Dates Length
TAX EXEMPTION THRESHOLDS
Reusable
Ice
Light
Source
Fuel
Containe-
rs
Batterie
s
Coolers
and Ice
Chests
Radios
Tie down
tools and
sheeting
Generato-
rs
May 21-June
1, 2006*
12 days $10 or less $20 or
less
$25 or less $30 or
less
$30 or
less
$50 or
less
$50 or
less
$1000 or
less
June 1-June
12, 2007*
12 days $10 or less $20 or
less
$25 or less $30 or
less
$30 or
less
$75 or
less
$50 or
less
$1000 or
less
May 31-June
8, 2014**
9 days $10 or less $20 or
less
$25 or less $30 or
less
$30 or
less
$50 or
less
$50 or
less
$750 or
less
June 2 –
June 4, 2017
3 days $10 or less $20 or
less
$25 or less $30 or
less
$30 or
less
$50 or
less
$50 or
less
$750 or
less
June 1-7,
2018
7 days $10 or less $20 or
less
$25 or less $30 or
less
$30 or
less
$50 or
less
$50 or
less
$750 or
less
May 31-June
6, 2019
7 days $10 or less $20 or
less
$25 or less $30 or
less
$30 or
less
$50 or
less
$50 or
less
$750 or
less
May 29-June
4, 2020
7 days $10 or less $20 or
less
$25 or less $30 or
less
$30 or
less
$50 or
less
$50 or
less
$750 or
less
May 28 –
June 6,
2021***
10 days $20 or less $40 or
less
$50 or less $50 or
less
$60 or
less
$50 or
less
$100 or
less
$1000 or
less
May 28 –
June 10,
2022****
14 days $20 or less $40 or
less
$50 or less $50 or
less
$60 or
less
$50 or
less
$100 or
less
$1000 or
less STORAGE NAME: h7063.WMC PAGE: 15
DATE: 4/14/2023
- Bags of dry dog or cat food weighing 50 or fewer pounds with a sales price of $100 or
less per bag;
- Cans or pouches of wet dog or cat food selling for $10 or less per can or pouch or the
equivalent if sold in a box or case;
- Over-the-counter pet medications selling for $100 or less;
- Portable kennels or pet carriers selling for $100 or less;
- Manual can openers selling for $15 or less;
- Leashes, collars, and muzzles selling for $20 or less;
- Collapsible or travel-size food or water bowls selling for $15 or less;
- Cat litter weighing 25 or fewer pounds and selling for $25 or less;
- Cat litter pans selling for $15 or less;
- Pet waste disposal bags selling for $15 or less;
- Pet pads selling for $20 or less per box;
- Hamster or rabbit substrate selling for $15 or less; and
- Pet beds selling for $40 or less.
Common household consumable items selling for $30 or less. For purposes of this exemption,
common household consumable items means:
- The following laundry detergent and supplies: powder, liquid, or pod detergent, fabric
softener, dryer sheets, stain removers, and bleach;
- Toilet paper;
- Paper towels;
- Paper napkins and tissues;
- Facial tissues;
- Hand soap, bar soap and body wash;
- Sunscreen and sunblock;
- Dish soap and detergents, including powder, liquid, or pod detergents or rinse agents
that can be used in dishwashers;
- Cleaning or disinfecting wipes and sprays;
- Hand sanitizer; and
- Trash bags.
Freedom Summer Sales Tax Holiday
Current Situation
In 2021 and 2022, the Legislature enacted a seven-day sales tax holiday, during the week surrounding
the Fourth of July, on specified recreational items and activities.
Effect of Proposed Changes
The bill provides for a 14-week sales tax holiday from May 29, 2023, through September 4, 2023, for
specified admissions and items related to recreational activities. During the sales tax holiday, the
following admissions, if purchased during this week, are exempt from the state sales tax and county
discretionary sales surtaxes:
84
A live music event scheduled to be held between May 29, 2023, and December 31, 2023;
A live sporting event scheduled to be held between May 29, 2023, and December 31, 2023;
A movie shown in a movie theater between May 29, 2023, and December 31, 2023;
Entry to a museum, including annual passes;
Use of or access to state parks, including annual passes;
Entry to a ballet, play, or musical theatre performance scheduled to be held between May 29,
2023, and December 31, 2023;
Season tickets to ballet, play, music events, or musical theatre performances;
84
If an admission is purchased exempt under this section and is subsequently resold outside of the holiday period, tax will be collected
on the resale price. STORAGE NAME: h7063.WMC PAGE: 16
DATE: 4/14/2023
Entry to a fair, festival, or cultural event scheduled to be held between May 29, 2023, and
December 31, 2023; and
Use of or access to gyms and physical fitness facilities between May 29, 2023, and December
31, 2023.
During the sales tax holiday, the following items are exempt from the state sales tax and county
discretionary sales surtax:
Boating and Water Activity Supplies
- jackets, coolers, paddles, and oars selling for $75 or less;
- Recreational pool tubes, pool floats, inflatable chairs, and pool toys selling for $35 or
less;
- safety flares selling for $50 or less;
- Water skis, wakeboards, kneeboards, and recreational inflatable tubes or floats capable
of being towed selling for $150 or less;
- Paddleboards and surfboards selling for $300 or less;
- Canoes and kayaks selling for $500 or less; and
- Snorkels, goggles, and swimming masks selling for $25 or less.
Camping Supplies
- Tents selling for $200 or less;
- Sleeping bags, portable hammocks, camping stoves, and collapsible camping chairs
selling for $50 or less; and
- Camping lanterns or flashlights selling for $30 or less.
Fishing Supplies
85
- Rods and reels selling for $75 or less, if sold individually, or selling for $150 or less if
sold as a set;
- Tackle boxes or bags selling for $30 or less; and
- Bait or fishing tackle selling for $5 or less, if sold per item, or selling for $10 or less if
multiple items are sold together.
General Outdoor Supplies
- Sunscreen or insect repellant selling for less than $15 or less;
- Sunglasses selling for $100 or less;
- Binoculars selling for $200 or less;
- Water bottles selling for $30 or less;
- Hydration packs selling for $50 or less;
- Outdoor gas or charcoal grills selling for $250 or less;
- Bicycle helmets selling for $50 or less; and
- Bicycles selling for $500 or less.
Residential Pool Supplies
- Individual residential pool and spa replacement parts, nets, filters, lights, and covers
selling for $100 or less; and
- Residential pool and spa chemicals purchased by an individual selling for $150 or less
Children’s Athletic Equipment
- A consumer product, selling for $100 or less, that is designed or intended by the
manufacturer for a child 12 years of age or younger for use by the child when child
engages in athletic activity.
Children’s Toys
- A consumer product, selling for $75 or less, designed or intended by the manufacturer
for a child 12 years of age or younger for use by the child when the child plays.
Skilled Worker “Tool Time” Sales Tax Holiday
Current Situation
According to the Florida Department of Economic Opportunity, a number of skilled trade occupations
are in high demand.
86
The cost of educational materials, tools, and other items can be a barrier to
85
The exemption for fishing supplies does not apply to supplies used for commercial fishing purposes. STORAGE NAME: h7063.WMC PAGE: 17
DATE: 4/14/2023
education, training, and employment for skilled trade workers.
In 2022, the Legislature enacted a seven-day sales tax holiday, during the week surrounding Labor
Day, on tools used in skilled trades. Currently, there is no exemption for tools used by skilled trade
workers, such as carpenters, electricians, plumbers, welders, pipefitters, masons, painters, heating and
air conditioning technicians, and other service technicians.
Effect of Proposed Changes
The bill provides a seven-day sales tax holiday from September 2, 2023, through September 8, 2023
for specified tools commonly used by skilled trade workers. During the sales tax holiday, the following
items are exempt from the state sales tax and county discretionary sales surtaxes:
Hand tools selling for $50 or less;
Power tools selling for $300 or less;
Power tool batteries selling for $150 or less;
Work gloves selling for $25 or less;
Safety glasses selling for $50 or less;
Protective coveralls selling for $50 or less;
Work boots selling for $175 or less;
Tool belts selling for $100 or less;
Duffle/tote bags selling for $50 or less;
Tool boxes selling for $75 or less;
Tool boxes for vehicles selling for $300 or less;
Industry text books and code books selling for $125 or less;
Electrical voltage and testing equipment selling for $100 or less;
LED flashlights selling for $50 or less;
Shop lights selling for $100 or less;
Handheld pipe cutters, drain opening tools, and plumbing inspection equipment selling for $150
or less;
Shovels selling for $50 or less;
Rakes selling for $50 or less;
Hard hats and other head protection selling for $100 or less;
Hearing protection items selling for $75 or less;
Ladders selling for $250 or less;
Fuel cans selling for $50 or less; and
High visibility safety vest selling for $30 or less.
The four sales tax holidays listed above do not apply to the following sales:
Sales within a theme park or entertainment complex, as defined in s. 509.013(9), F.S.;
Sales within a public lodging establishment, as defined in s. 509.013(4), F.S.; and
Sales within an airport, as defined in s. 330.27(2), F.S.
Property Tax
The ad valorem tax, or “property tax,” is an annual tax levied by local government. The Florida
Constitution prohibits the state from levying ad valorem taxes on real property,
87
and instead authorizes
local governments, including counties, school districts, and municipalities to levy ad valorem taxes.
Special districts may also be given this authority by law.
88
86
Regional Demand Occupations List, available at: http://www.floridajobs.org/workforce-statistics/publications-and-reports/labormarket-
information-reports/regional-demand-occupations-list (last visited March 1, 2023)
87
Article VII, s. 1(a), Fla. Const.
88
Article VII, s. 9., Fla. Const. STORAGE NAME: h7063.WMC PAGE: 18
DATE: 4/14/2023
The property appraiser annually determines the “just value”
89
of property within the taxing authority and
then applies relevant exclusions, assessment limitations, and exemptions to determine the property’s
“taxable value.”
90
Tax bills are mailed in November of each year, and payment is due by March 31.
91
The tax is based on the taxable value of property as of January 1 of each year.
92
The Florida Constitution limits the Legislature’s authority to allow for property valuations at less than
just value, unless expressly authorized.
93
Federal, state, and county governments are immune from
taxation but municipalities are not subdivisions of the state and may be subject to taxation absent an
express exemption.
94
The Florida Constitution grants property tax relief in the form of certain valuation
differentials,
95
assessment limitations,
96
and exemptions,
97
including the exemptions relating to
municipalities,
98
exemptions for certain veterans
99
and first responders, and exemptions for educational,
literary, scientific, religious or charitable purposes.
100
Property Tax Exemptions for Veterans, First Responders, and Surviving Spouses
Background
The Florida Constitution provides several property tax exemptions for disabled veterans and first
responders and their surviving spouses.
101
These include, among others, exemptions for the following
persons:
A veteran with a total and permanent service-connected disability is entitled to a complete
exemption for property owned and used as a homestead.
102
A first responder with a total and permanent service-connected disability is entitled to a
complete exemption for property owned and used as a homestead.
103
The unremarried surviving spouse of a veteran who died while on active duty or first responder
who died in the line of duty is entitled to a complete exemption for property owned and used as
a homestead if the veteran or first responder was a permanent resident of Florida on the day he
or she died.
104
Exemption for Permanently and Totally Disabled Veterans and Surviving Spouses
Current Situation
89
Property must be valued at “just value” for purposes of property taxation, unless the Florida Constitution provides otherwise. (Article
VII, s. 4, Fla. Const.). 4. Just value has been interpreted by the courts to mean the fair market value that a willing buyer would pay a
willing seller for the property in an arm’s-length transaction. See Walter v. Shuler, 176 So. 2d 81 (Fla. 1965); Deltona Corp. v. Bailey,
336 So. 2d 1163 (Fla. 1976); Southern Bell Tel. & Tel. Co. v. Dade County, 275 So. 2d 4 (Fla. 1973).
90
Section. 192.001(2) and (16), F.S.
91
Sections 197.322 and 197.333, F.S.
92
Section 192.042, F.S.
93
Article VII, s. 4, Fla. Const.
94
"Exemption" presupposes the existence of a power to tax, while "immunity" implies the absence of it. See Turner v. Florida State Fair
Authority, 974 So. 2d 470 (Fla. 2d DCA 2008); Dept. of Revenue v. Gainesville, 918 So. 2d 250, 257-59 (Fla. 2005).
95
Article VII, s. 4, Fla. Const., authorizes valuation differentials, which are based on character or use of property.
96
Article VII, s. 4(c), Fla. Const., for example, authorizes the “Save Our Homes” property assessment limitation, which limits the
increase in assessment of homestead property to the lesser of 3 percent or the percentage change in the Consumer Price Index. .
97
Article VII, s. 3, Fla. Const., provides authority for the various property tax exemptions. The statutes also clarify or provide property
tax exemptions for certain licensed child care facilities operating in an enterprise zone,
properties used to provide affordable housing,
educational facilities,
charter schools,
property owned and used by any labor organizations,
community centers,
space laboratories,
and
not-for-profit sewer and water companies.
98
Article VII, s. 3, Fla. Const.
99
Article VII, s. 6, Fla. Const.
100
Article VII, s. 3(a), Fla. Const.
101
Article VII, s. 6(f), Fla. Const.
102
Article VII, s. 3(b), Fla. Const.; ss. 196.081 and 196.102, F.S.
103
Section 196.102, F.S.
104
Section 196.081(4) and (6), F.S. STORAGE NAME: h7063.WMC PAGE: 19
DATE: 4/14/2023
The homestead property of a veteran who was honorably discharged with a service-connected total
and permanent disability is exempt from taxation.
105
To qualify for this exemption, the veteran must be
a permanent resident of the state on January 1 of the tax year for which exemption is being claimed or
must have been a permanent resident of this state on January 1 of the year the veteran died.
106
If the
veteran predeceases their spouse, the spouse may continue to receive the exemption as long as the
property remains the homestead property of the spouse and the spouse is unmarried.
107
The presentation of a letter of total and permanent disability from the United States Government or
United States Department of Veterans Affairs by a veteran or their spouse to the property appraiser is
prima facie evidence of entitlement to the exemption.
108
A veteran may apply for the exemption before
receiving documentation from the United States Government or the United States Department of
Veterans Affairs.
109
When the property appraiser receives the documentation, the exemption is granted
as of the date of the original application, with excess taxes paid refunded (subject to the four-year
period of limitation under s. 197.182(1)(e), F.S.).
110
Section 196.081, F.S., provides that a veteran who was honorably discharged with a service-connected
total and permanent disability may apply for this homestead property exemption in the current tax year
for a property acquired between January 1 and November 1 of the tax year if the veteran had received
the exemption on another property in the immediately preceding tax year.
111
The veteran will receive
the exemption in the form of a refund, prorated from the date of property transfer, if the veteran applies
for and receives the exemption on the newly acquired property in the following tax year.
112
If the totally and permanently disabled veteran predeceases their spouse, the tax exemption will carry
over to the surviving spouse if the surviving spouse has legal or beneficial title to the property and uses
it as a homestead, and does not remarry.
113
If the surviving spouse sells the property, the exemption
amount for the sold property from the most recent tax roll may be transferred to the new property so
long as the new property is used as a homestead by the surviving spouse and they do not remarry.
114
Effect of Proposed Changes
Effective for the 2024 tax roll, the bill removes the requirement that a totally and permanently disabled
veteran must have had the exemption on another property in the same year in order to qualify for the
prorated refund of property taxes on newly acquired property. This will allow certain totally and
permanently disabled veterans who were not owners of homestead property to receive the benefit of
the exemption from property taxes from the date of property acquisition in the form of a refund, instead
of having to wait until the following January 1 to receive the exemption. However, the veteran must
have qualified as having a service-connected total and permanent disability as of January 1 of the year
the new property was acquired.
Exemption for the Surviving Spouse of a Permanently and Totally Disabled Veteran
Current Situation
Section 196.081(4), F.S., provides in pertinent part:
(4) Any real estate that is owned and used as a homestead by the surviving spouse of a
veteran who died from service-connected causes while on active duty as a member of the
United States Armed Forces and for whom a letter from the United States Government or
105
Section 196.081(1), F.S.
106
Section 196.081(1)(a), F.S.
107
Section 196.081(3), F.S.
108
Section 196.081(2), F.S.
109
Section 196.081(5), F.S.
110
Section 196.081(5), F.S.
111
Section 196.081(1)(b), F.S.
112
Section 196.081(1)(b), F.S.
113
Section 196.081(3), F.S.
114
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DATE: 4/14/2023
United States Department of Veterans Affairs or its predecessor has been issued certifying that
the veteran who died from service-connected causes while on active duty is exempt from
taxation if the veteran was a permanent resident of this state on January 1 of the year in
which the veteran died. (emphasis supplied)
In Dep't of Revenue v. Bell, 290 So. 3d 1060 (Fla. 2d Dist. Ct. App. 2020), the Court found the
provision in bold above to be invalid and unenforceable under the State Constitution.
Effect of Proposed Changes
The bill removes the unenforceable language from statute.
Exemptions for Certain First Responders and Surviving Spouses
Current Situation
The Florida Constitution defines a “first responder” as “a law enforcement officer, a correctional officer,
a firefighter, an emergency medical technician, or a paramedic,”
115
while the statute implementing the
amendment defines a “first responder” as “a law enforcement officer or correctional officer as defined in
s. 943.10, a firefighter as defined in s. 633.102, or an emergency medical technician or a paramedic as
defined in s. 401.23 who is a full-time paid employee, part-time paid employee, or unpaid volunteer.”
116
The definition of “law enforcement officer” provided in s. 943.10, F.S., does not include federal law
enforcement officers.
Totally and Permanently Disabled First Responders
The Florida Constitution authorizes the Legislature to provide for a full exemption from ad valorem
taxes for first responders who are totally and permanently disabled as a result of an injury or injuries
sustained in the line of duty.
117
This exemption carries over to the benefit of the surviving spouse as
long as the spouse holds legal or beneficial title to the homestead, resides permanently thereon, and
does not remarry.
118
In order to qualify for the exemption, the first responder must provide
documentation to the property appraiser supporting their claim of total and permanent disability.
119
These documents may include documentation from the Social Security Administration stating the
applicant is totally and permanently disabled, a certificate from the organization that employed the
applicant as a first responder at the time of the injury or injuries containing the details of the injury that
caused the disability, and a certification from a physician certifying the total and permanent disability of
the applicant. This exemption is currently available to first responders as the term is defined in 196.081,
F.S., meaning that it is only available to those first responders who were employed by the state or any
political subdivision thereof at the time of their injury or injuries sustained in the line of duty resulting in
total and permanent disability.
Surviving Spouses of First Responders who Died in the Line of Duty
The Florida Constitution authorizes the Legislature to provide for a full exemption from ad valorem
taxes for the surviving spouse of a first responder who died in the line of duty.
120
This exemption has
been in place since 2012, when the Legislature passed, and voters subsequently approved, an
amendment to the constitution authorizing the exemption.
121
In order to qualify for the exemption, the
first responder and his or her surviving spouse must have been permanent residents of Florida on
January 1 of the year in which the first responder died, the real estate must be owned and used by the
surviving spouse as a homestead, and the first responder must have been employed by the state of
115
Article VII, s. 6(e), Fla. Const.
116
Section 196.081(6)(c1., F.S.
117
Article VII, s. 6(f), Fla. Const., and s. 196.101, F.S.
118
Section 196.102(8), F.S.
119
Section 196.102(5), F.S.
120
Article VII, s. 6(f), Fla. Const., implemented by s. 196.081, F.S.
121
CS/HJR 93 (2012). STORAGE NAME: h7063.WMC PAGE: 21
DATE: 4/14/2023
Florida or any political subdivision of Florida at his or her time of death.
122
The surviving spouse may
receive the exemption as long as the spouse holds legal or beneficial title to the homestead, resides
permanently thereon, and does not remarry.
123
If the surviving spouse sells the property and purchases
a new homestead property, the spouse may transfer the exemption to the new property, capped at the
amount granted under the most recent ad valorem tax roll.
124
The surviving spouses of law
enforcement officers who were employed by the federal government and died in the line of duty are not
eligible for the exemption.
Effect of Proposed Changes
Effective for the 2024 tax roll, the bill revises the definition of “first responder” to include federal law
enforcement officers as defined in s. 901.1505(1), F.S., thereby expanding the ad valorem tax
exemption for surviving spouses of first responders who died in the line of duty and the ad valorem tax
exemption for first responders rendered totally and permanently disabled as the result from an injury or
injuries sustained in the line of duty to include federal law enforcement officers. Applicants for the
exemption must still meet all other requirements.
Carry-Over of Exemptions to New Residences by Surviving Spouses
Current Situation
An exemption granted to a surviving spouse of a totally and permanently disabled or deceased veteran
or first responder continues so long as the surviving spouse holds title to the homestead property,
permanently resides thereon, and does not remarry.
125
The amount exempted may be carried forward
to a new homestead if the first property is sold, the newly acquired property is established as a
homestead, and the surviving spouse does not remarry.
126
Additionally, a veteran or surviving spouse
who acquires new homestead property between January 1 and November 1 may receive a refund,
prorated as of the date of transfer, of the ad valorem taxes paid in the year of acquisition if they apply
for and receive an exemption under 198.081, F.S., in the following tax year.
127
Effect of Proposed Changes
The bill amends s. 196.081, F.S., to clarify throughout that veterans, first responders, and surviving
spouses receiving homestead exemptions related to total and permanent disability or death sustained
in the line of duty who purchase a new homestead property are entitled to retain the amount of the
exemption.
The bill also similarly clarifies that upon establishing a new homestead a person who applies for and
receives such an exemption is entitled to receive a refund for the taxes paid on the homestead property
in the year of acquisition.
In order to retain an exemption or receive a refund under these provisions, the property owner must still
notify the property appraiser and apply for the exemption. The bill does not substantively change the
procedure for applying for or being granted such an exemption.
Refund for Residential Parcels Rendered Uninhabitable by Catastrophic Events
Current Situation
In the regular 2022 legislative session, the Legislature passed a bill creating s. 197.319, F.S., to
provide for the prorated refund of property taxes on residential properties rendered uninhabitable by a
122
Section 196.081(6), F.S.
123
Section 196.081(6)(b), F.S.
124
Id.
125
Section 196.081(3), (4)(b), and (6)(b), F.S.
126
Id.
127
Section 198.081(1)(b), F.S. STORAGE NAME: h7063.WMC PAGE: 22
DATE: 4/14/2023
catastrophic event.
128
The relief created by s. 197.319, F.S., is available solely as a refund of taxes paid
and does not waive the requirement of timely payment of taxes.
129
If a residential property is rendered
uninhabitable for 30 days or more by a catastrophic event, the property owner may be refunded a
portion of their property taxes for the time the property was uninhabitable.
130
The property owner must
submit an application for refund to the property appraiser who will then investigate the statements
contained therein and determine if the applicant qualifies for a refund.
131
If the applicant qualifies, the
tax collector will calculate the refund owed based off of the days the property was rendered
uninhabitable.
132
Effect of Proposed Changes
The bill makes several non-substantive changes to s. 197.319, F.S., to improve readability and
operation of the provision enacted in 2022.
Property Entitled to Religious, Scientific, or Literary Exemptions
Background
When calculating ad valorem taxes, a property’s value is reduced by any exemptions provided by law,
including exemptions for educational, literary, scientific, religious, or charitable purposes.
133
The
Legislature implements these constitutional exemptions and sets forth the criteria to determine whether
property is entitled to an exemption.
134
These implementation provisions give property appraisers a
guide when assessing or exempting property.
135
In determining whether the use of a property qualifies the property for an educational, literary, scientific,
religious, or charitable exemption, the property appraiser must consider the nature and extent of the
qualifying activity compared to other activities performed by the organization owning the property, and
the availability of the property for use by other qualifying entities.
136
Only the portions of the property
used predominantly for qualified purposes may be exempt from ad valorem taxation.
137
Property owned
by an exempt organization used exclusively for exempt purposes is totally exempt from ad valorem
taxation.
Educational Institution Property Tax Exemption
Current Situation
As mentioned above, Florida exempts from ad valorem tax property owned by an educational institution
and used exclusively for educational purposes.
138
Generally, in order to be exempt, the property has to
be both owned by and education institution and used for educational purposes by the education
institution or other exempt entity. The exemption has been expanded to include unique ownership
situations. For instance, land, buildings, and other improvements used exclusively for educational
purposes is deemed to be owned by an educational institution (and therefore exempt) if the entity that
owns 100% of the land is a nonprofit entity and the land is leased by an educational institution that
owns the buildings and other improvements to the real property and that is a nonprofit entity under
501(c)(3) of the Internal Revenue Code that provides education limited to kindergarten through grade
8.
139
128
Chapter 2022-97, s. 14, L.O.F.
129
Section 197.319(2)(a), F.S.
130
Section 197.319(2), F.S.
131
Section 197.319(2)(d), F.S.
132
Section 197.319(3), F.S.
133
Article VII, s. 3., Fla. Const.
134
Chapter 196, F.S.
135
State ex rel. Cragor Co. v. Doss, 150 Fla. 486, 8 So.2d 15 (1942).
136
Section 196.196(1)(a)-(b), F.S.
137
Section 196.196(2), F.S.
138
Section 196.198, F.S.
139
Id. STORAGE NAME: h7063.WMC PAGE: 23
DATE: 4/14/2023
Effect of Proposed Changes
The bill amends s. 196.198, F.S., to provide property used exclusively for educational purposes shall be
deemed owned by an educational institution if the educational institution is a lessee that owns the
leasehold interest in a bona fide lease for a nominal amount per year having an original term of 98
years or more. This will allow such properties to qualify for an educational exemption for property tax
purposes.
Parsonages and Burial Grounds
Current Situation
Prior to 1968, Florida Statutes expressly included parsonages owned by churches in the religious
exemption from property tax. Former 192.06(4), F.S., provided in pertinent part:
Property exempt from taxation.- The following property shall be exempt from taxation:
(4) All houses of public worship and lots on which they are situated, and all pews or steps and
furniture therein, every parsonage and all burying grounds not owned or held by individuals or
corporations for speculative purposes, tombs and right of burial; …
Statutory revisions following the adoption of the 1968 Florida Constitution removed this statutory
language that expressly exempted parsonages. Under current law, the only mention of parsonages in
ch. 196, F.S., is found in s. 196.011(3), which provides that it is not necessary to make an annual
application for exemption on houses of public worship, including parsonages.
Effect of Proposed Changes
The bill creates a new provision in s. 196.196, F.S., that expressly provides that property that is used as
a parsonage, burial grounds or tomb and is owned by a house of public worship is used for a religious
purpose and is thus exempt.
Corporate Income Tax
Florida levies a 5.5 percent tax on the taxable income of corporations and financial institutions doing
business in Florida.
140
Florida utilizes the taxable income determined for federal income tax purposes
as a starting point to determine the total amount of Florida corporate income tax due.
141
This means
that a corporation paying taxes in Florida generally receives the same benefits from deductions allowed
when determining taxable income for federal tax purposes as it does when determining taxable income
for state taxation purposes, unless the state chooses not to adopt specific federal provisions.
Adoption of the Internal Revenue Code
Current Situation
Florida maintains its relationship with the federal Internal Revenue Code (IRC) by annually adopting the
IRC as it exists on January 1.
142
By doing this, Florida adopts any changes related to determining
federal taxable income that were made during the previous year.
Effect of Proposed Changes
The bill updates the Florida corporate income tax code by adopting the IRC as in effect on January 1,
2023.
140
Section 220.11(2), F.S.
141
Section 220.12, F.S.
142
Sections 220.03(1)(n) and (2)(c), F.S. STORAGE NAME: h7063.WMC PAGE: 24
DATE: 4/14/2023
This section of the bill is effective upon becoming law and applies retroactively to January 1, 2023.
Graywater, Residential Systems, and Development Incentives
Current Situation
Graywater is the part of domestic sewage that is not carried off by toilets, urinals, and kitchen drains. It
includes waste from the bath, lavatory, laundry, and sink, except for kitchen sink waste.
143
Graywater
installations occur in both residential and non-residential installations and the capture, treatment, and
reuse of graywater yields usable water that would otherwise be directed to the sewer.
144
Reusing
graywater also reduces the use of potable water for non-potable needs and conserves fresh water.
145
The Florida Building Code specifies that graywater may only be used for flushing of toilets and urinals.
Any discharge from the building must be connected to a public sewer or an onsite sewage treatment
and disposal system in accordance with Department of Health regulations in chapter 64E-6 of the
Florida Administrative Code.
146
Graywater systems in Florida have several requirements: the graywater
must be filtered, disinfected, and dyed; and storage reservoirs must have drains and overflow pipes
which must be indirectly connected to the sanitary drainage system.
147
To encourage adoption of residential graywater reuse in the state, counties, municipalities, and special
districts are required to implement incentives for the use of graywater technologies.
148
To do this, they
must authorize the use of residential graywater technologies in their respective jurisdictions and provide
specific density or intensity bonuses to developers or homebuilders if a certain percentage of a
proposed or existing development will have a graywater system installed.
149
Water Reuse Systems Certification
Various certifications are used to establish standards for reused water. Recycled graywater is tested for
attributes such as biochemical oxygen demand, suspended solids, and bacteria presence. The National
Science Foundation, a federal agency, and the American National Standards Institute, a nonprofit
organization, have produced standards for on-site residential and commercial water reuse treatment
systems, the most rigorous of which is referred to as “NSF/ANSI 350.” Products are tested for at least
26 weeks for performance, and other evaluations are completed, before a product is granted
certification.
150
There are several products that have achieved this certification, with costs ranging from
$1,000 to $10,000.
151
Effect of Proposed Changes
The bill creates s. 220.199, F.S., which provides a tax credit against corporate income tax for
developers and homebuilders that purchase a qualifying residential graywater system for use in Florida.
The credit may be applied to taxable years beginning on or after January 1, 2024, and is equal to 50
143
Section 381.0065(2)(f), F.S.
144
Alliance for Water Efficiency, Graywater Systems, available at: https://www.allianceforwaterefficiency.org/resources/topic/graywater-
systems (last visited Mar. 1, 2023).
145
Martinez, Christopher J., Gray Water Reuse in Florida, University of Florida IFAS Extension,
https://edis.ifas.ufl.edu/ae453#:~:text=Gray%20water%20must%20be%20filtered,to%20the%20sanitary%20drainage%20system (last
visited Mar. 1, 2023).
146
2020 Florida Building Code – Plumbing, Seventh Edition (Dec. 2020), available at: https://codes.iccsafe.org/content/FLPC2020P1
(last visited Mar. 3, 2023).
147
Id.
148
Section 403.892(2), F.S.
149
Id.
150
National Science Foundation, NSF/ANSI Standard 350 for Water Reuse Treatment Systems, available at:
https://d2evkimvhatqav.cloudfront.net/documents/ww_nsf_ansi350_qa_insert.pdf (last visited Mar. 1, 2023).
151
Id. See also Todd Woody, Install a Greywater System to Lower Utility Bills and Save Water, BLOOMBERG NEWS, Mar. 17, 2022,
available at: https://www.bloomberg.com/news/articles/2022-03-17/why-you-should-install-a-home-greywater-
system?leadSource=uverify%20wall (last visited Mar. 2, 2023). STORAGE NAME: h7063.WMC PAGE: 25
DATE: 4/14/2023
percent of the cost of each system purchased during the taxable year, not to exceed $4,200 per system
purchased or $2 million per developer or homebuilder per taxable year.
Eligible systems must be NSF/ANSI 350 Class R certified noncommercial, residential graywater
systems. To claim a credit, an applicant must submit to the Department of Environmental Protection
(DEP) reasonable assurances that the system meets these requirements as well as a manufacturer’s
warranty assuring the system will function as designed. DEP must, within 60 days of a completed
application, determine if the applicant is eligible for a credit and issue to the applicant and DOR a
certification to that effect. Taxpayers must attach the certification to the tax return on which the credit is
claimed.
The bill provides that no credits may be certified by DEP for taxable years beginning on or after
January 1, 2027.
The bill provides that unused tax credits may be carried forward for up to two taxable years, and
authorizes DOR and DEP to adopt rules to administer the tax credit.
The bill amends s. 220.02(8), F.S., to include the new tax credit at the end of the Legislature’s intended
order of tax credit application.
The bill amends s. 220.13, F.S., to provide that a taxpayer may not apply the same credit to both
federal income and Florida corporate income taxes.
Manufacturing of Human Breast Milk Fortifiers
Current Situation
Nutritional Needs of Premature Infants
Preterm, or premature, infants
152
may have different feeding needs from full term infants in order to
thrive. Very premature babies (before 32 or 33 weeks or weighing less than 3.5 pounds)
153
may require
extra nutrients added to human breast milk (their mother’s milk or other milk) in order to achieve a
healthy weight.
154,155
These children often require additional protein, calcium, phosphorous, iron, salt,
and other additives to help them “catch up” to full term infants.
156
These can be provided through
commercially prepared liquid or powder fortifier.
157
The cost for fortified human breast milk for a single
preterm infant can be more than $10,000.
158
Many premature babies are not provided with these
products due to the overwhelming cost.
159
Manufacturing of Human Breast Milk Fortifiers
152
Usually defined to mean to live births at fewer than 37 weeks. See, World Health Organization, Preterm Birth, available at
https://www.who.int/news-room/fact-sheets/detail/preterm-birth (last visited April 7, 2023).
153
Carroll K, Herrmann KR. The cost of using donor human milk in the NICU to achieve exclusively human milk feeding through 32
weeks postmenstrual age. Breastfeed Med. 2013 Jun;8(3):286-90. doi: 10.1089/bfm.2012.0068. Epub 2013 Jan 16. PMID: 23323965;
PMCID: PMC3663453, available at https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3663453/ (last visited April 7, 2023).
154
Randy Children’s Hospital-San Diego, Human Milk Fortifiers for Preterm Infants, available at https://www.rchsd.org/programs-
services/neonatology/parent-education/human-milk-fortifiers-for-preterm-infants/ (last visited April 7, 2023).
155
Stanford Medicine Children’s Healthy, Adding to Mother’s Milk, available at
https://www.stanfordchildrens.org/en/topic/default?id=adding-to-mothers-milk-90-P02333 (last visited April 7, 2023).
156
Gu X, Shi X, Zhang L, Zhou Y, Cai Y, Jiang W, Zhou Q. Evidence summary of human milk fortifier in preterm infants. Transl Pediatr.
2021 Nov;10(11):3058-3067. doi: 10.21037/tp-21-476. PMID: 34976771; PMCID: PMC8649601, available at
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8649601/ (last visited April 7, 2023).
157
Id.
158
Carroll K, Herrmann KR. The cost of using donor human milk in the NICU to achieve exclusively human milk feeding through 32
weeks postmenstrual age. Breastfeed Med. 2013 Jun;8(3):286-90. doi: 10.1089/bfm.2012.0068. Epub 2013 Jan 16. PMID: 23323965;
PMCID: PMC3663453, available at https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3663453/ (last visited April 7, 2023).
159
The New York Times, Breast Milk Becomes a Commodity, With Mothers Caught Up in Debate, March 20, 2015, available at
https://tinyurl.com/5e7ck3zu (unlocked article, last visited April 7, 2023). STORAGE NAME: h7063.WMC PAGE: 26
DATE: 4/14/2023
The manufacturing of human breast milk fortifiers is an emerging field, with several companies trying to
increase access to safe and affordable fortified human breast milk for premature infants.
160
The cost
for machinery and equipment to safely sterilize, pasteurize, process, and/or otherwise produce human
milk fortifiers that are safe for premature infants can be significant.
Effect of Proposed Changes
The bill creates s. 220.1991, F.S., a corporate income tax credit for up to 50% of the cost of machinery
and equipment purchased to produce human breast milk fortifiers in this state. The total credits that
can be awarded are $5 million per state fiscal year. The credit is available for two years, FY 2023-24
and 2024-25, and allows unused credits to carry forward for up to five taxable years.
The bill amends s. 220.02(8), F.S., to include the new tax credit at the end of the Legislature’s intended
order of tax credit application.
The bill amends s. 220.13, F.S., to provide that a taxpayer may not apply the same credit to both
federal income and Florida corporate income taxes.
Motor Fuel and Diesel Fuel Tax
Natural Gas Fuel Tax Delay
Current Situation
Motor Fuel
161
Florida law provides for the following taxes on motor fuel:
162
An excise or license tax of 2 cents per net gallon of motor fuel, designated as the “constitutional
fuel tax”;
An additional 1 cent per net gallon, designated as the “county fuel tax”;
An additional 1 cent per net gallon, designated as the “municipal fuel tax”;
An additional tax of 1 cent per net gallon may be imposed by each county, designated as the
“ninth-cent fuel tax”;
An additional tax of between 1 and 11 cents per net gallon may be imposed by each county,
designated as the “local option fuel tax”;
An additional tax per net gallon of motor fuel is imposed by each county, designated as the
SCETS Tax, at a rate calculated by applying specified index-based adjustments to a rate
specified in the law;
An additional tax per net gallon is imposed “on the privilege of selling motor fuel”, designated as
the “fuel sales tax,” at a rate calculated by applying specified index-based adjustments to an
initial rate established in the law; and
An additional 0.125 cents per net gallon for defraying expenses incident to inspecting, testing,
and analyzing motor fuel in this state.
The current state tax rate on motor fuel is 20.2 cents per gallon, the SCETS tax rate on motor fuel is 8.6
cents, and the fuel sales tax rate on motor fuel is 15.1 cents. The local option rate varies by county, and
the total state and county rates on motor fuel varies from 35.2 cents to 41.3 cents per gallon.
163
160
See, e.g., Medolac, Mission, available at https://www.medolac.com/our-mission/ (last visited April 7, 2023); Lactalogics, About Us,
available at https://lactalogics.com/about/ (last visited April 7, 2023); and Prolacta, About Us, https://www.prolacta.com/en/about-us/
(last visited April 7, 2023).
161
“Motor fuel” is defined as “all gasoline products or any product blended with gasoline or any fuel placed in the storage supply tank of
a gasoline-powered motor vehicle.” S. 206.01(9), F.S.
162
Section 206.41(1), F.S,
163
Florida Department of Revenue, Tax Information Publication No. 22B05-06, Fuel Tax Rates Adjusted Beginning January 1, 2023,
(Nov. 17, 2022), available at: https://floridarevenue.com/taxes/tips/Pages/default.aspx (last visited March 29, 2023). STORAGE NAME: h7063.WMC PAGE: 27
DATE: 4/14/2023
Diesel Fuel
164
Florida law provides for the following taxes on diesel fuel:
165
An excise tax of 4 cents per net gallon of diesel fuel;
An additional 1 cent per net gallon is imposed by each county, designated as the “ninth-cent fuel
tax”;
An additional 6 cents per net gallon is imposed by each county, designated as the “local option
fuel tax”;
An additional tax per net gallon is imposed in each county, designated as the SCETS Tax, at a
rate equal to the maximum SCETS Tax rate for motor fuel; and
An additional tax per net gallon “on the privilege of selling diesel fuel,” designated as the “fuel
sales tax,” at a rate calculated by applying specified index-based adjustments to an initial rate
established in the law.
The current state tax rate on diesel fuel is 20.2 cents per gallon and the county tax rate (ninth cent,
SCETS, and local option rates) is 15.9 cents statewide. The total state and county rates on diesel fuel
are 36.1 cents per gallon.
166
Pre-2014
Prior to 2014, natural gas fuels such as compressed natural gas (CNG) and liquid petroleum gas (LPG)
were defined in Florida law as “alternative fuels” when used to fuel motor vehicles.
167
In lieu of the
excise tax imposed on diesel fuel under the law, owners or operators of Florida-licensed motor vehicles
powered by alternative fuels were required to pay an annual decal fee for each such vehicle.
168
These
annual fees ranged from $199.10 to $380.10 per vehicle, depending on the vehicle’s size and
weight.
169
The sale of alternative fuels also was subject to sales tax imposed under ch. 212, F.S.
170
With certain exceptions, Florida law prohibited a person from acting as a retailer of alternative fuel
unless that person held a valid license as a retailer of alternative fuel issued by DOR.
171
Any person
acting as such without a license was subject to a penalty of 25 percent of the tax assessed on total
purchases during the unlicensed period.
172
Every person who operated as a retailer of alternative fuel,
with certain exceptions, was required to report monthly to DOR and pay tax on all fuel purchases.
173
Revenues from the annual decal fees were deposited into the State Alternative Fuel User Fee Clearing
Trust Fund.
174
After deducting a specified service charge, the proceeds in the trust fund were
distributed as follows:
One-half of the proceeds to the State Transportation Trust Fund (STTF);
50 percent of the remainder to the State Board of Administration for distribution in accordance
with the Florida Constitution;
25 percent of the remainder to the Revenue Sharing Trust Fund for Municipalities; and
164
“Diesel fuel” is defined as “all petroleum distillates commonly known as diesel #2, biodiesel, or any other product blended with diesel
or any product placed into the storage supply tank of a diesel-powered motor vehicle.” s. 206.86(1), F.S.
165
Section 206.87(1), F.S.
166
Florida Department of Revenue, Tax Information Publication No. 22B05-06, Fuel Tax Rates Adjusted Beginning January 1, 2023,
(Nov. 17, 2022), available at: https://floridarevenue.com/taxes/tips/Pages/default.aspx (last visited March 29, 2023).
167
Section 206.86(4), F.S. (2012)
168
Section 206.86(4), F.S. (2012)
169
See Use of Natural Gas Fuels to Operate Motor Vehicles is Increasing in Florida, Office of Program Policy Analysis & Government
Accountability, Report No. 17-10 (Oct. 2017), at p. 4.
170
Id.
171
Section 206.89, F.S. (2012)
172
Id.
173
Id.
174
Section 206.879, F.S. (2012) STORAGE NAME: h7063.WMC PAGE: 28
DATE: 4/14/2023
25 percent of the remainder to the counties for specified public transportation purposes,
distributed as provided by law.
Current Law
In 2013, the Legislature passed legislation to “help reduce transportation costs in this state and
encourage freight mobility investments that contribute to the economic growth of the state.”
175
To
accomplish these goals, the bill created a 5-year rebate program for natural gas fuel fleet vehicles and
exempted natural gas fuels from state fuel taxes for 5 years. The Natural Gas Fuel Fleet Vehicle
Rebate program provided $6 million per fiscal year, from FY 2013-14 through FY 2017-18, to fund
rebates for the purchase, conversion, or lease of natural gas fuel fleet vehicles. Further, effective
January 1, 2014, the bill eliminated the annual decal fee for natural gas vehicles. The 2013 bill replaced
it with a new tax structure that creates a “per motor fuel equivalent gallon” tax rate to become effective
January 1, 2019.
176
In 2018, the legislature delayed the effective date of these taxes to January 1,
2024.
Pursuant to current law, the following taxes will be imposed on natural gas fuel
177
effective January 1,
2024:
178
An excise tax of 4 cents upon each motor fuel equivalent gallon
179
of natural gas fuel;
An additional tax of 1 cent upon each motor fuel equivalent gallon of natural gas fuel, which is
designated as the “ninth-cent fuel tax”;
An additional tax of 1 cent on each motor fuel equivalent gallon of natural gas fuel by each
county, which is designated as the “local option fuel tax”;
An additional tax on each motor fuel equivalent gallon of natural gas fuel, designated as the
“State Comprehensive Enhanced Transportation System (SCETS) Tax.” The tax rate must be
determined by DOR each calendar year, rounded to the nearest tenth of a cent, for the following
12-month period beginning January 1. The rate is calculated by adjusting the “initially
established tax rate of 5.8 cents per gallon” by the percentage change in the average of the
Consumer Price Index issued by the United States Department of Labor for the most recent 12-
month period ending September 30; and
An additional tax on each motor fuel equivalent gallon of natural gas fuel “for the privilege of
selling natural gas fuel,” designated as the “fuel sales tax.” The tax rate must be determined by
DOR each calendar year, rounded to the nearest tenth, for the following 12-month period
beginning January 1. The rate is calculated by adjusting the “initially established tax rate of 9.2
cents per gallon” by the percentage change in the average of the Consumer Price Index issued
by the United States Department of Labor for the most recent 12-month period ending
September 30.
In sum, prior to any of the required annual index-based adjustments by DOR, natural gas fuel will be
taxed at a rate of at least $0.21 cents per motor fuel equivalent gallon beginning January 1, 2024.
180
175
Ch. 2013-198, Laws of Fla.
176
Id. The provisions of the bill related to taxation of natural gas fuel are codified as Part V of Ch. 206, F.S., consisting of Ss. 206.9951
– 206.998, entitled “NATURAL GAS FUEL.”
177
“Natural gas fuel” is defined as “any liquefied petroleum gas product, compressed natural gas product, or combination thereof used
in a motor vehicle as defined in s. 206.01(23). This term includes, but is not limited to, all forms of fuel commonly or commercially
known or sold as natural gasoline, butane gas, propane gas, or any other form of liquefied petroleum gas, compressed natural gas, or
liquefied natural gas. This term does not include natural gas or liquefied petroleum placed in a separate tank of a motor vehicle for
cooking, heating, water heating, or electric generation.” S. 206.9951(2), F.S.
178
Section 206.9955, F.S.
179
“Motor fuel equivalent gallon” is defined as “the volume of natural gas fuel it takes to equal the energy content of 1 gallon of motor
fuel.” s. 206.9951(1), F.S. The conversion rates for various types of natural gas fuels is provided in s. 206.9955, F.S.
180
The law is unclear as to whether the index-based adjustments were to begin with the effective date of the law (January 1, 2014) or
the effective date of the new tax rates (January 1, 2024). STORAGE NAME: h7063.WMC PAGE: 29
DATE: 4/14/2023
Revenues from the natural gas fuel tax will be deposited into the State Alternative Fuel User Fee
Clearing Trust Fund to be distributed as follows:
181
The revenues from the SCETS tax and fuel sales tax will be transferred to the STTF.
The revenues from the excise tax will be distributed as follows:
- 50% will be transferred to the State Board of Administration for distribution in
accordance with the Florida Constitution.
- 25% will be transferred to the Revenue Sharing Trust Fund for Municipalities.
- 25% will be distributed to the counties for specified public transportation purposes,
distributed as provided by law.
The revenues from the ninth-cent fuel tax and the local option sales tax will be deposited into
the Local Alternative Fuel User Fee Clearing Trust Fund and returned monthly to the
appropriate counties.
The law provides that until December 31, 2023, any person acting as a natural gas retailer without a
valid license to do so must pay a penalty of $200 for each month of operation without a license.
Effective January 1, 2024, the penalty becomes 25 percent of the tax assessed on total purchases
made during the unlicensed period.
182
In addition, the law requires natural gas fuel retailers to submit
an electronic, monthly report to DOR, beginning February 2024 and monthly thereafter, showing
information on inventory, purchases, nontaxable disposals, table uses, and taxable sales in gallons of
natural gas fuel for the preceding month, with certain exceptions and a specified deduction for services
rendered and expenses incurred in complying with the reporting requirements.
183
Effect of Proposed Changes
The bill provides for a 2-year delay of the imposition of natural gas fuel taxes that would otherwise go
into effect January 1, 2024. The bill changes the effective date of the imposition of these taxes to
January 1, 2026. Thus, state fuel taxes will not apply to natural gas fuels for an additional 2 years.
To conform to the delayed imposition of these taxes, the bill:
Extends by 2 years (from December 31, 2023, to December 31, 2025) the expiration of the
current flat penalty scheme that applies to any person who acts as a natural gas retailer without
a valid natural gas fuel retailer license, and delays by 2 years (from January 1, 2024, to January
1, 2026) the effective date of a new penalty scheme that is based on a percentage of the tax
assessed during the period of unlicensed operations; and
Delays by 2 years (from February 2024 to February 2026) the date by which natural gas fuel
retailers must file monthly reports with DOR for the purpose of determining the amount of
natural gas fuel taxes imposed.
Documentary Stamp Tax and Non-Recurring Intangible Tax
Taxation of Certain Small Business Loans
Current Situation
Documentary Stamp Tax
Florida levies a documentary stamp tax on certain documents executed, delivered, or recorded in
Florida. The most common examples are documents that transfer an interest in Florida real property,
such as deeds; and mortgages and written obligations to pay money, such as promissory notes.
184
181
Section 206.997, F.S
182
Section 206.9952(3), F.S.
183
Section 206.996, F.S.
184
Florida Department of Revenue, Florida Documentary Stamp Tax, available at
https://floridarevenue.com/taxes/taxesfees/pages/doc_stamp.aspx (last visited March 24, 2023). STORAGE NAME: h7063.WMC PAGE: 30
DATE: 4/14/2023
The tax on deeds and other documents related to real property is 70 cents per $100,
185
and the tax on
bonds, debentures, certificates of indebtedness, promissory notes, nonnegotiable notes, and other
written obligations to pay money is 35 cents per $100.
186
Documentary stamp taxes levied on
promissory notes, nonnegotiable notes, and written obligations may not exceed $2,450.
187
Non-Recurring Intangible Tax
Chapter 199, F.S., imposes a non-recurring, one-time intangible personal property tax on obligations for
the payment of money secured by liens on Florida real property.
188
The rate for the intangible tax is 2
mills for each dollar of the just valuation of all notes, bonds, and other obligations for payment of money
which are secured by mortgage, deed, or other lien.
189
The rate is limited by Art. VII, section 2 of the
Florida Constitution.
504 Loan Program
The United States Small Business Administration (SBA) provides long-term, fixed rate financing
through their 504 Loan Program for small, for-profit companies looking to invest in major fixed assets
but who need assistance with funding. The loan program offers loans of up to $5.5 million
190
that can
be used for buildings, land, or machinery and equipment necessary to promote business growth or spur
job creation.
191
The program is most frequently structured to have the owner put in 10% of the necessary capital,
192
50% of the funding to come from a traditional loan,
193
and 40% of the funding to be the 504 Loan.
194
The program is run through Certified Development Companies, which are nonprofit corporations that
help organize the 504 Loan process and serve as intermediaries for companies, banks, and the SBA.
195
Both the 50% traditional loan and the 40% SBA loan are subject to documentary stamp tax and non-
recurring intangibles under Florida law, based on the value of the loans.
As part of the 504 Loan process, there is a period where an “interim” or “bridge” loan is made for the
portion of the loan that will ultimately be held by the SBA. The 40% interim loan which will be assumed
by the SBA can be issued by either the same bank issuing the 50% traditional loan, or by a different
bank from the 50% traditional loan lender. The process by which the SBA takes over the loan in either
circumstance is essentially a step transaction.
When the 40% interim loan is held by the same bank as the traditional 50% loan, for purposes of
documentary stamp tax and intangibles tax, the only amount taxable when the SBA assumes the loan
are any new or additional fees added to the 40% loan at the time the loan is transferred. If the 40% loan
is held by a different entity, then the entire balance of the loan which has already been taxed is taxed
again when the loan is transferred to the SBA, in addition to taxing any new or additional fees. This
creates two different taxing structures based solely on what lender issues the interim loan, and results
in a portion of the loan being taxed at each step of the transaction in certain circumstances.
Effect of the Proposed Changes
185
Section 201.02(1)(a), F.S.
186
Sections 201.07 and 201.08(1)(b), F.S.
187
Section 201.08(1)(a), F.S.
188
Section 199.133(1), F.S.
189
Id.
190
15 U.S.C. section 696(2).
191
U.S. Small Business Administration, 504 Loans, available at https://www.sba.gov/funding-programs/loans/504-loans (last visited
April 6, 2023).
192
15 U.S.C. section 696(3)(C)(iv)
193
15 U.S.C. section 696(3)(B)(ii)
194
U.S. Small Business Administration, 504 Loan Program, available at https://www.sba.gov/brand/assets/sba/sba-lenders/504-Loan-
Fact-Sheet-Borrower-Version.pdf (last visited April 6, 2023).
195
Id.
STORAGE NAME: h7063.WMC PAGE: 31
DATE: 4/14/2023
The bill clarifies that an interim loan upon which taxes have already been paid is not subject to
documentary stamp or intangible taxes on the same amount when the federal government takes over
the loan.
Communications Service Tax
Local Rate Freeze
Current Situation
Chapter 202, F.S., is the Communications Services Tax (CST) Simplification Law. The term
“communications services” means the transmission, conveyance, or routing of voice, data, audio, video,
or any other information or signals, including video services, to a point, or between or among points, by
or through any electronic, radio, satellite, cable, optical, microwave, or other medium or method,
regardless of the protocol used for such transmission or conveyance.
196
Section 202.105, F.S., provides the legislative findings and intent related to enactment of the CST
simplification law. The law simplified a complicated state and local tax and fee system, by restructuring
separate taxes and fees into a revenue-neutral CST centrally administered by the Department of
Revenue (DOR), i.e. a single tax to replace multiple taxes and fees previously imposed. Among the
Legislature’s stated intentions in creating the CST was that it not reduce the authority that municipalities
or counties had to raise revenue in the aggregate, as such authority existed on February 1, 1989.
The state CST rate, except for direct-to-home satellite service, is 4.92 percent.
197
Local governments
may also levy a discretionary CST:
Charter counties and municipalities may levy the CST at a rate of up to 5.1 percent for
municipalities and charter counties that have not chosen to levy permit fees, and at a rate of up
to 4.98 percent for municipalities and charter counties that have chosen to levy permit fees; and
Noncharter counties may levy the CST at a rate of up to 1.6 percent.
198
These maximum rates do not include the add-ons, pursuant to s. 337.401, F.S., of up to 0.12 percent
for municipalities and charter counties or of up to 0.24 percent for noncharter counties, if those local
governments have elected not to require right-of-way permit fees.
199
The local discretionary CST and add-on rates, if applicable, constitute the total local adopted rate.
200
The local CST includes and is in lieu of any fee or other consideration, including, but not limited to,
application fees, transfer fees, renewal fees, or claims for related costs, to which the municipality or
county is otherwise entitled for granting permission to dealers of communications services to use or
occupy its roads or rights-of-way for the placement, construction, and maintenance of poles, wires, and
other fixtures used in the provision of communications services.
201
Additionally, the term “replaced
revenue sources” includes permit fees relating to use of rights-of-way collected from communication
services providers; however, if a municipality or charter county elects the option to charge permit fees
pursuant to s. 337.401(3)(c), F.S., such fees are not be included as a replaced revenue source.
202
Under s. 202.19(5), F.S., any discretionary sales surtax levied by a county or school board under s.
212.055, F.S., is imposed as a local CST. This surtax is added to the adopted local rate at the
196
Section 202.11(1), F.S. Excluded from this definition is information services; installation or maintenance of wiring or equipment on a
customer’s premises; the sale or rental of tangible personal property; the sale of advertising, including, but not limited to, directory
advertising; bad check charges; late payment charges; billing and collection services; and internet access service, electronic mail
service, electronic bulletin board service, or similar online computer services.
197
Section 202.12(1)(a) and (b), F.S. For direct-to-home satellite service the rate is 9.07 percent.
198
Section 202.19, F.S.
199
Section 337.401(3)(c), F.S.
200
Florida Department of Revenue, 2023 Agency Legislative Bill Analysis for SB 1432, (Mar. 14, 2023)
201
Section 202.19(3)(a), F.S.
202
Section 202.20(2)(b)1.e, F.S. STORAGE NAME: h7063.WMC PAGE: 32
DATE: 4/14/2023
respective conversion rate, as determined in accordance with methodology and chart in s. 202.20(3),
F.S. The total local CST rate is the total adopted rate plus the local option tax (at the converted rate), if
applicable. The total local CST rates vary by jurisdiction.
Effect of Proposed Changes
The bill revises s. 202.19, F.S., to require that any local CST rate in effect as of January 1, 2023,
cannot be increased before January 1, 2026. The bill also provides that any increases to discretionary
sales tax, levied pursuant to s. 212.055, F.S., may not be added to the local CST under s. 202.19, F.S.,
before January 1, 2026.
Tourist Development Tax
Tourist Development Taxes
The Local Option Tourist Development Act
203
authorizes counties to levy five separate taxes on
transient rental
204
transactions (tourist development taxes or TDTs). Depending on a county’s eligibility
to levy such taxes, the maximum potential tax rate varies:
The original TDT may be levied at the rate of 1 or 2 percent.
205
An additional 1 percent tax may be levied by counties who have previously levied the original
TDT at the 1 or 2 percent rate for at least three years.
206
A high tourism impact tax may be levied at an additional 1 percent.
207
A professional sports franchise facility tax may be levied up to an additional 1 percent.
208
An additional professional sports franchise facility tax no greater than 1 percent may be
imposed by a county that has already levied the professional sports franchise facility tax.
209
Tourist Development Tax Uses
Current law authorizes counties to levy and spend TDTs as a mechanism for funding a variety of
tourist-related uses, including tourism promotion and the financing and construction of public facilities
needed to increase tourist-related business activities in the county, beach restoration and maintenance
projects, and convention centers and professional sports franchise facilities. Such uses are tied to the
specific TDT being levied.
For example, the revenue derived from the original 1 or 2% TDT under s. 125.0104(3)(c), F.S., and
from the additional 1% TDT under s. 125.0104(3)(d), F.S., may be used to:
Acquire, construct, extend, enlarge, remodel, repair, improve, maintain, operate, or promote a:
- Publicly owned and operated convention center, sports stadium, sports arena, coliseum,
auditorium;
210
203
Section 125.0104, F.S.
204
Section 125.0104(3)(a)(1), F.S. considers “transient rental” to be the rental or lease of any accommodation for a term of six months
or less.
205
Section 125.0104(3)(c), F.S. All sixty-seven of Florida’s counties are eligible to levy this tax, but only sixty-two counties have done
so, all at a rate of 2 percent. Office of Economic & Demographic Research (EDR), County Tax Rates: CY 2007-2023, available at
http://edr.state.fl.us/Content/local-government/data/data-a-to-z/g-l.cfm (last visited Ar. 3, 2023). These counties are estimated to realize
$612 million in revenue from these taxes in the 2022-23 fiscal year. EDR, 2022 Local Government Financial Information Handbook
(December 2022), p. 251, http://edr.state.fl.us/Content/local-government/reports/lgfih22.pdf (last visited Apr. 3, 2023).
206
Section 125.0104(3)(d), F.S. Fifty-six of the eligible fifty-nine counties levy this tax, with an estimated 2022-23 state fiscal year
collection of $250 million in revenue. EDR, 2022 Local Government Financial Information Handbook, supra note 227, at p. 255.
207
Section 125.0104(3)(m), F.S. Eight of the nine eligible counties levy this tax, with an estimated 2022-23 state fiscal year collection of
$162 million in revenue. Id. at p. 261.
208
Section 125.0104(3)(l), F.S. Revenue can be used to pay debt service on bonds for the construction or renovation of professional
sports franchise facilities, spring training facilities or professional sports franchises, and convention centers and to promote and
advertise tourism. Forty-five of the sixty-seven eligible counties levy this additional tax, with an estimated 2022-23 state fiscal year
collection of $285 million in revenue. Id. at p. 259.
209
Section 125.0104(3)(n), F.S. Thirty-one counties levy the additional professional sports franchise facility tax, with an estimated 2022-
23 state fiscal year collection of $217 million in revenue. Id. at p.265. STORAGE NAME: h7063.WMC PAGE: 33
DATE: 4/14/2023
- Auditoriums that are publicly owned but operated by a 501(c)(3) organization;
211
or
- Aquarium or museum that is publicly owned and operated or owned and operated by a not-
for-profit organization.
212
Promote zoos that are publicly owned and operated or owned and operated by not-for-profit
organizations;
213
Promote or advertise tourism in the state;
214
Fund convention bureaus, tourist bureaus, tourist information centers, and news bureaus as
county agencies, or by contract with chambers of commerce or similar associations in the
county;
215
Finance beach park facilities or beach improvement, maintenance, renourishment, restoration,
and erosion control, including shoreline protection, enhancement, cleanup or restoration of
inland lakes and rivers to which there is public access as those uses relate to the physical
preservation of the beach, shoreline, or inland lake or river;
216
or
Acquire, construct, extend, enlarge, remodel, repair, improve, maintain, operate, or finance
public facilities needed to increase tourist-related business activities in the area, including any
related land acquisition, land improvement, design and engineering costs, and all other
professional and related costs required to bring the facilities into service.
217
In counties with populations less than 950,000, the acquisition, construction, extension,
enlargement, remodeling, repair, or improvement, maintenance, operation, or promotion of
zoos, fishing piers, or nature centers which are publicly owned and operated or owned and
operated by a not-for-profit organization and open to the public.
218
In certain coastal counties, up to 10% of the revenues can be used to reimburse the county for
public safety services necessary to address impact related to increased tourism.
219
Secure revenue bonds issued by the county for the acquisition, construction, extension,
enlargement, remodeling, repair, or improvement of a publicly owned and operated convention
center, sports stadium, sports arena, coliseum, auditorium, aquarium, or a museum, or financing
beach park facilities or beach improvement, maintenance, renourishment, restoration, and
erosion control.
220
Public Safety Services in Certain Small Counties
Current Situation
In 2016 the legislature passed legislation that authorized a county located adjacent to the Gulf of
Mexico or the Atlantic Ocean, which meets certain criteria, may use up to 10 percent of the tourist
development tax revenue to reimburse expenses incurred in providing public safety services, including
emergency medical services as defined in s. 401.107(3), and law enforcement services, which are
needed to address impacts related to increased tourism and visitors to the area.
221
The criteria are the
following:
210
Section 125.0104(5)(a)1.a, F.S.
211
Section 125.0104(5)(1)1.b., F.S.
212
Section 125.0104(5)(a)1.c., F.S.
213
Section 125.0104(5)(a)2., F.S.
214
Section 125.0104(5)(a)3., F.S.
215
Section 125.0104(5)(a)4., F.S.
216
In counties with populations less than 100,000, up to 10 percent of tourist development tax revenues may be used for financing
beach park facilities. See s. 125.0104(5)(a)5., F.S.
217
Section 125.0104(5)(a)6., F.S. This provision is limited to counties in which $10 million in tourist development tax revenues were
received in the prior year, the county governing board approves such used by a 2/3 vote, no more than 70% of the proposed public
facilities will be funded with TDT revenue, at least 40% of all TDT revenue collected in the county are spent to promote and advertise
tourism, and an independent analysis demonstrates the positive impact the infrastructure project will have on tourist-related businesses.
218
Section 125.0104(5)(b), F.S.
219
Section 125.0104(5)(c), F.S. The counties must have more than $10 million in TDT revenue, have three or more municipalities, and
have a population of less than 225,000.
220
Section 125.0104(5)(d)
221
Section 125.0104(5)(c), F.S. STORAGE NAME: h7063.WMC PAGE: 34
DATE: 4/14/2023
County must generate a minimum of $10 million in annual proceeds from any tax, or any
combination of taxes, authorized to be levied pursuant to this section
222
;
County must have at least three municipalities
223
; and
County must have an estimated population of less than 225,000, according to the most recent
population estimate.
224
At the time, the eligible counties were Okaloosa, Walton, and Bay counties.
Okaloosa County is growing close to that population limitation and is expected to surpass it in the next
three years.
225
Effect of Proposed Changes
The bill increases the population cap for s. 125.0104(5)(c), F.S., from 225k to 275k to maintain the
same class of eligible counties.
Credits Available Against Multiple Taxes
Current Situation
Florida Tax Credit Scholarship Program (FTC)
The FTC is funded with contributions to private non-profit Scholarship-Funding Organizations (SFOs)
from taxpayers who receive a tax credit for use against their liability for corporate income tax; insurance
premium tax, severance taxes on oil and gas production, self-accrued sales tax liabilities of direct pay
permit holders; or alcoholic beverage taxes on beer, wine and spirits.
226
The credit is equal to 100
percent of the eligible contributions made.
227
To receive a credit the taxpayer must submit an
application to DOR and specify each tax for which the taxpayer requests a credit and the applicable
taxable or state fiscal year for the credit.
228
Taxpayers can rescind tax credits, which will become
available to another eligible taxpayer in that fiscal year.
229
The maximum amount of tax credits that may be awarded in FY 2022-23 is $1.1 billion.
230
The Revenue
Estimating Conference estimates that contributions applicable against this limit will be $848.5 million in
FY 2022-23.
231
In any state fiscal year when the annual tax credits granted for the prior state fiscal year
are equal to or greater than 90 percent of the tax credit cap amount applicable to that state fiscal year,
the tax credit cap amount is increased by 25 percent.
232
New Worlds Reading Initiative Tax Credit
The New Worlds Reading Initiative, established in s. 1003.485, F.S., was created in 2021 to provide tax
credits for businesses that make monetary donations to the administrator of the New Worlds Reading
Initiative, a literacy program that provides books to elementary school students in Florida who read
below grade level.
233
The tax credits are a dollar-for-dollar credit against business’s liability for
222
Section 125.0104(5)(c)1, F.S.
223
Section 125.0104(5)(c)2, F.S.
224
Section 125.0104(5)(c)3, F.S.
225
Office of Economic and Demographic Research, Projections of Florida Population by County, 2025-2050, with Estimates for 2021,
available at http://edr.state.fl.us/Content/population-demographics/data/MediumProjections_2021.pdf (last visited Apr. 3, 2023).
226
Section 1002.395, F.S., along with s. 211.0251, s. 212.1831, s. 220.1875, s. 561.1211, and s. 624.51055, F.S.
227
Sections 211.0251, 212.1831, 220.1875, 561.1211, and 624.51055, F.S.
228
Section 1002.395(5)(b), F.S.
229
Section 1002.395(5)(e), F.S.
230
Florida Department of Revenue Taxpayer Information Publication #22ADM-05, Florida Tax Credit Scholarship Program Tax Credit
Cap Will Increase, issued June 6, 2022, available at https://floridarevenue.com/taxes/tips/Documents/TIP_22ADM-05.pdf (last visited
April 7, 2023).
231
Revenue Estimating Conference, Pre-Consensed Tax Credits March 2023 Forecast, available at
http://edr.state.fl.us/Content/conferences/generalrevenue/grscholarshiptaxcreditestimates.pdf (last visited April 7, 2023).
232
Section 1002.395(5)(a)1., F.S.
233
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DATE: 4/14/2023
corporate income tax; insurance premium tax, severance taxes on oil and gas production, self-accrued
sales tax liabilities of direct pay permit holders; or alcoholic beverage taxes on beer, wine and spirits.
234
Businesses that wish to participate in the program by making a donation to the program apply to DOR
for an allocation of tax credit.
235
The taxpayer must specify in the application each tax for which the
taxpayer requests a credit, the applicable taxable year for a credit under ss. 220.1876 or 624.51056,
F.S., relating to the corporate income and insurance premium tax credits, and the applicable state fiscal
year for a credit under ss. 211.0252, 212.1833, or 561.1212, F.S., relating to oil and gas production,
direct pay permit sales, and alcoholic beverage tax credits, respectively.
236
The annual tax credit cap for
all credits under this program was $10 million for state fiscal year 2021-22, $30 million for 2022-23, and
is $50 million for all years thereafter.
237
DOR is required to approve the tax credits on a first-come, first-
served basis and must obtain the approval of the DBPR prior to approving an alcoholic beverage tax
credit under s. 561.1212, F.S.
238
Strong Families Tax Credit
The Strong Families Tax Credit Program, established in s. 402.62, F.S., was created in 2021 to provide
tax credits for businesses that make monetary donations to certain eligible charitable organizations that
provide services focused on child welfare and well-being.
239
The organizations are certified by the
Department of Children and Families (DCF).
240
The tax credits are a dollar-for-dollar credit against the
business’s liability for corporate income tax; insurance premium tax, severance taxes on oil and gas
production, self-accrued sales tax liabilities of direct pay permit holders; or alcoholic beverage taxes on
beer, wine and spirits.
241
The credit is equal to 100 percent of the eligible contributions made to the
charitable organization.
Businesses that wish to participate in the program by making a donation to an eligible charitable
organization apply to DOR for an allocation of tax credit.
242
The taxpayer must specify in the application
each tax for which the taxpayer requests a credit, the applicable taxable year for a credit under ss.
220.1877 or 624.51057, F.S., relating to the corporate income and insurance premium tax credits, and
the applicable state fiscal year for a credit under ss. 211.0253, 212.1834, or 561.1213, F.S., relating to
oil and gas production, direct pay permit sales, and alcoholic beverage tax credits, respectively.
243
The
annual tax credit cap for all credits under this program is $10 million per state fiscal year.
244
DOR is
required to approve the tax credits on a first-come, first-served basis and must obtain the approval of
DBPR to approving an alcoholic beverage tax credit under s. 561.1213, F.S.
245
Responsible Fatherhood Initiative
In 2022, the Legislature created the Responsible Fatherhood Initiative in s. 409.1464, F.S. That
provision requires DCF to contract for the development and implementation of a communications
initiative regarding responsible fatherhood. The goal of the initiative is to provide resources and
inspiration to Florida’s fathers to motivate and enable them to enhance their abilities as fathers. The
provision requires the campaign to involve, at a minimum, a website and related electronic resources to
allow fathers to obtain information about effective parenting and where to receive support and services.
The campaign must include, but not be limited to, print, television, and digital and social media
elements, and public events. The communications initiative may also have appearances by and
involvement from public figures and influencers.
234
Section 1003.485, F.S., along with s. 211.0252, s. 212.1833, s. 220.1876, s. 561.1212, and s. 624.51056, F.S.
235
Section 1003.485(5)(b), F.S.
236
Section 1003.485(5)(b)1., F.S.
237
Section 1003.485(5)(a), F.S.
238
Section 1003.485(5)(b)1., F.S.
239
Chapter 2021-31., L.O.F.
240
See, https://www.myflfamilies.com/about/strong-families-tax-credit (last visited April 10, 2023)
241
Section 402.62, F.S., along with s. 211.0253, s. 212.1834, s. 220.1877, s. 561.1213, and s. 624.51057, F.S.
242
Section 402.62(5)(b), F.S.
243
Section 402.62(5)(b)1., F.S.
244
Section 402.62(5)(a), F.S.
245
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DATE: 4/14/2023
The provision requires the entity with which DCF contracts for the initiative to be a not-for-profit
organization that:
Has a history of focusing on responsible fatherhood, including providing online resources to
fathers, and engaging fathers, father figures, and children through community-based and
school-based events to encourage responsible fatherhood; and
Has the organizational capacity to manage a statewide initiative and successfully carry out the
requirements for the initiative.
The selected contractor must collaborate with other relevant agencies of state government and private
organizations to develop and implement the initiative.
Underpayment Penalty
Florida’s corporate income tax code allows taxpayers to request and receive an extension to file a tax
return if they have extended their federal return or for other good cause, so long as they file a tentative
tax return and pay, on or before the original due date, the amount estimated to be due.
246
The
extension is not valid, and interest and penalties may apply, if the taxpayer underpays the estimated tax
due by more than the greater of $2,000 or 30% of the tax shown on the return when filed.
247
For purposes of calculating whether the underpayment is “more than 30% of the tax shown,” the
Department of Revenue does not currently treat contributions made under any of the credit programs
mentioned above as tax shown or tax paid. Instead, the calculation is based on the remaining tax
shown to be due on the return after credits are taken.
Effect of Proposed Changes
The bill increases the annual cap for the Strong Families program from $10 million per state fiscal year
to $20 million per state fiscal year, beginning in FY 2023-24.
The bill also provides that revenue received by an organization pursuant to a contract under s.
409.1464, F.S., is not included in the provision limiting eligible organizations for the Strong Families
program to those receiving no more than 50 percent of its total revenue from the Department of
Children and Families.
The bill clarifies that for purposes of the underpayment penalty, and related extension revocations and
interest charges, that the “tax shown on the return when filed” includes the amount of allowable credits
taken on the return pursuant to the Florida Tax Credit Scholarship Program, the New Worlds Reading
Initiative Tax Credit, or the Strong Families Tax Credit.
B. SECTION DIRECTORY:
Section 1: Amends s. 125.0104, F.S., revising a population cap.
Section 2: Amends s. 196.081, F.S., expanding eligibility for a certain ad valorem tax exemptions.
Section 3: Provides that the changes made to s. 196.081, F.S., first apply to the 2024 ad valorem
tax roll.
Section 4: Amends s. 196.081, F.S., clarifying eligibility for certain ad valorem tax exemptions.
Section 5: Amends s. 196.196, F.S., specifying certain property as used for religious purposes.
Section 6: Provides that the changes made to s. 196.196, F.S., are remedial and clarifying in
nature.
Section 7: Amends s. 196.198, F.S., providing an additional circumstance under which property is
deemed to be owned by an educational institution.
246
Section 220.222(2), F.S.
247
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DATE: 4/14/2023
Section 8: Amends s. 197.319, F.S., clarifying definitions and procedures for the refund of taxes in
certain circumstances.
Section 9: Provides that the changes made under 197.319, F.S., first apply to the 2024 ad valorem
tax roll.
Section 10: Amends s. 199.145, F.S., providing requirements for taxation of specified loans in
certain circumstances.
Section 11: Amends s. 201.08, F.S., providing requirements for taxation of specified loans in certain
circumstances.
Section 12: Amends s. 202.19, F.S., freezing local communications services tax rates for three
years.
Section 13: Amends s. 206.9952, F.S., delaying the effective date of certain taxes on natural gas
fuel.
Section 14: Amends s. 206.9955, F.S., delaying the effective date of certain taxes on natural gas
fuel.
Section 15: Amends s. 206.996, F.S., delaying the effective date of certain taxes on natural gas fuel.
Section 16: Amends s. 212.031, F.S., reducing the tax levied on rental or license fees charged for
the use of real property.
Section 17: Amends s. 212.054, F.S., providing administrative provisions related to discretionary
sales surtaxes.
Section 18: Amends s. 212.08, F.S., providing for various sales tax exemptions.
Section 19: Amends 213.053, F.S., revising information which the Department of Revenue may
share with the Department of Environmental Protection consistent with changes made
by bill.
Section 20: Amends 220.02, F.S., revising the order in which credits may be taken to include credits
created by the bill.
Section 21: Amends s. 220.03, F.S., adopting the Internal Revenue Code in effect on January 1,
2023.
Section 22: Provides that changes made to section 220.03, F.S., take effect upon becoming law and
operate retroactively to January 1, 2023.
Section 23: Amends 220.13, F.S., revising the definition of the term "adjusted federal income" to
include credits created by the bill.
Section 24: Creates s. 220.199, F.S., creating a tax credit to developers and homebuilders for
certain graywater systems purchased during the taxable year.
Section 25: Creates s. 220.1991, F.S., creating a tax credit for manufacturing of human breast milk
fortifiers.
Section 26: Amends s. 220.222, F.S., requiring specified calculations relating to the underpayment
of taxes to include the amount of certain credits.
Section 27: Amends s. 402.62, F.S., modifying the restrictions for designation as an eligible
charitable organization under the Strong Families tax credit program and increasing the
Strong Families tax credit cap.
Section 28: Provides exemptions from the sales and use tax on the retail sale of certain clothing,
wallets, bags, school supplies, learning aids, personal computers, and personal
computer related accessories during a specified timeframe.
Section 29: Provides exemptions from the sales and use tax for specified disaster preparedness
supplies during specified timeframes.
Section 30: Provides exemptions from the sales and use tax for certain admissions to music events,
sporting events, cultural events, specified performances, movies, museums, state parks, STORAGE NAME: h7063.WMC PAGE: 38
DATE: 4/14/2023
and fitness facilities, during specified timeframes and for certain boating and water
activity, camping, fishing, general outdoor supplies, pool supplies, children’s toys, and
sports equipment, during specified timeframes.
Section 31: Provides an exemption from sales and use tax on the retail sale of certain tools used by
skilled trade workers for a specified period of time.
Section 32: Provides an exemption from sales and use tax on the retail sale of certain ENERGY
STAR appliances for a specified period of time.
Section 33: Provides an exemption from sales and use tax on the retail sale of gas ranges and
cooktops for a specified period of time.
Section 34: Requires a transfer between trust funds and provides for expenditures of such funds.
Section 35: Provides emergency rulemaking authority to the Department of Revenue.
Section 36: Provides that changes made to s. 212.054, F.S., apply retroactively to January 1, 2018.
Section 37: Provides effective dates.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
See FISCAL COMMENTS section.
2. Expenditures:
See FISCAL COMMENTS section.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
See FISCAL COMMENTS section.
2. Expenditures:
See FISCAL COMMENTS section.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill provides for a number of temporary and permanent sales tax benefits: two separate 14-day
sales tax holidays for back-to-school; one 14-day sales tax holiday for disaster preparation supplies;
one 3-month holiday for recreational items and activities; a 7-day sales tax holiday for skilled worker
tools; a 1-year exemption on certain energy star appliances and gas ranges and cooktops; a reduction
in the sales tax on commercial rent from 5.5% to 4.5%; and permanent exemptions for specified baby
and toddler products and clothes, adult incontinence products, oral hygiene products, machinery and
equipment used to produce renewable natural gas, certain agricultural fencing, and small private
investigative agency services.
The bill also provides a number of property tax benefits, including: several changes to expand, clarify,
or correct provisions related to homestead benefits for permanently and totally disabled veterans, first
responders, and surviving spouses of either; allowing an educational facility to qualify for an exemption
if they have a bona fide 98-year lease with nominal payments; and making technical and clarifying
changes to several sections of existing law.
D. FISCAL COMMENTS:
The Revenue Estimating Conference has not yet estimated the potential revenue impacts of many of
the provisions of the bill. Those provisions are identified in the table below in the rows highlighted in STORAGE NAME: h7063.WMC PAGE: 39
DATE: 4/14/2023
blue and include staff estimates of the revenue impacts of these provisions. The provisions for which
the REC has estimated the potential revenue impacts are reflected in the non-highlighted rows.
Staff estimates the total state and local impact of the bill in FY 2023-24 is -$1,376.7 million (-$245.2
million recurring), of which -$930.7 million (-$195.7 million recurring) is on General Revenue, -$.2
million ($0 recurring) is on state trust funds, and -$445.8 million (-$49.5 million recurring) is on local
government (see table below). Nonrecurring state and local government impact in years beyond FY
2023-24 total -$68.1 million and -$377.9, respectively. Total tax reductions embodied in the language
are represented by the sum of the recurring impacts, reflecting the annual value of permanent tax cuts
when fully implemented, and the pure nonrecurring impacts, reflecting temporary tax reductions. The
total of -$1,842.2 million in tax reductions in the bill is the sum of -$245.2 million (recurring), -$1,150
million (pure nonrecurring in FY 2023-24), and -$447 million (pure nonrecurring after FY 2023-24).
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
The county/municipality mandates provision of Art. VII, s. 18 of the Florida Constitution may apply
because this bill expands the ad valorem tax exemption for surviving spouses of first responders who
died in the line of duty, expands the ad valorem tax exemption for first responders rendered totally
and permanently disabled as the result from an injury or injuries sustained in the line of duty, and
allows certain qualifying totally and permanently disabled veterans who were not owners of
homestead property to receive the benefit of an exemption from property taxes not allowed under
current law; however, an exemption may apply if those provisions have an insignificant fiscal impact.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill provides emergency rulemaking authority to the Department of Revenue to implement a
number of changes made by the bill. The bill also provides rulemaking authority to the Department of
Revenue to administer the corporate income tax credit related to machinery and equipment used to
produce human breast milk fortifiers and the sales tax exemption for machinery and equipment used in
the production of renewable natural gas. The bill also provides rulemaking authority to the Department
of Revenue and the Department of Environmental Protection to administer the provisions related to the
corporate income tax credit for graywater system.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: h7063.WMC PAGE: 40
DATE: 4/14/2023
Fiscal Year 2023-24 Estimated Fiscal Impacts (Millions of $)
Tax Package Cash Recur1st YearRecur1st YearRecur1st YearRecur
Sales Tax: Private Investigative Services (1.2) (1.3) (*) (*) (0.3) (0.3) (1.5) (1.6)
Sales Tax: Adult Incontinence Products (19.9) (21.7) (*) (*) (5.3) (5.8) (25.2) (27.5)
Sales Tax: Renewable Natural Gas Machinery and Equipment Exempt (1.5) (0.7) (*) (*) (0.4) (0.2) (1.9) (0.9)
Sales Tax: Baby and Toddler Products (116.8) (127.4) (*) (*) (31.1) (33.9) (147.9) (161.3)
Sales Tax: Back to School Sales Tax Holiday (136.9) - (*) - (36.4) - (173.3) -
Sales Tax: Disaster Preparedness Sales Holiday (36.5) - (*) - (9.7) - (46.2) -
Sales Tax: Energy Star Appliances (61.7) - (*) - (16.4) - (78.1) -
Sales Tax: Freedom Summer (182.7) - (*) - (48.6) - (231.3) -
Sales Tax: Gas Ranges and Cooktops (5.4) - (*) - (1.4) - (6.8) -
Sales Tax: Oral Hygiene Products (31.2) (34.0) (*) (*) (8.3) (9.0) (39.5) (43.0)
Sales Tax: Skilled Worker Tool Holiday (9.9) - (*) - (2.6) - (12.5) -
Sales Tax: Fencing (0.5) (0.6) (*) (*) (0.1) (0.1) (0.6) (0.7)
Sales Tax: Hillsborough County Tax Holiday - - - - (202.1) - (202.1) -
Sales Tax: Business Rent Tax Rate Reduction (311.5) - (*) - (82.9) - (394.4) -
Property Tax: Exemption for Permanently and Totally Disabled Veterans
and Surviving Spouses - - - - (0.1) (0.2) (0.1) (0.2)
Property Tax: Exemption for the Surviving Spouse of a Permanently and
Totally Disabled Veteran - - - - - - - -
Property Tax: Exemption for Permanently and Totally Disabled First
Responders and Surviving Spouses - - - - - (*) - (*)
Property Tax: Carry-Over of Exemptions to New Residences by Surviving
Spouses - - - - - - - -
Property Tax: Refund for Residential Parcels Rendered Uninhabitable by
Catastrophic Events - - - - - - - -
Property Tax: Educational Institution Property Tax Exemption - - - - - (*) - (*)
Property Tax: Parsonages and Burial Grounds - - - - - - - -
Corporate Income Tax: Adoption of the Internal Revenue Code - - - - - - - -
Corporate Income Tax: Graywater, Residential Systems, and Development
Incentives (**) - - - - - (**) -
Corporate Income Tax: Credit for Manufacturing of Human Breast Milk
Fortifiers (5.0) - - - - - (5.0) -
Motor Fuel Taxes: Natural Gas Fuel Tax Delay (*) - (0.2) - (0.1) - (0.3) -
Documentary Stamp Tax: Exempt Specified Federal Government Loan
Program Loans (*) (*) (*) (*) - - (*) (*)
Communications Service Tax: Local Rate Freeze - - - - - - - -
Tourist Development Tax: Public Safety Services in Certain Small Counties- - - - - - - -
Mutiple Taxes: Multitax Credit Penalty Issue 0/(*) (*) - - - - 0/(*) -
Mutiple Taxes: Strong Families Tax Credit - Responsible Fatherhood
Initiative - - - - - - - -
Mutiple Taxes: Strong Families Tax Credit - Cap Increase (10.0) (10.0) - - - - (10.0) (10.0)
Subtotal (930.7) (195.7) (0.2) - (445.8) (49.5) (1,376.7) (245.2)
Non-recurring Impacts After FY 2023-24 Cash Cash Cash Cash
Sales Tax: Energy Star Appliances (5.6) - (*) - (1.5) - (7.1) -
Sales Tax: Gas Ranges/Cooktops (0.5) - (*) - (0.1) - (0.6) -
Sales Tax: Business Rent Tax Rate Reduction (56.8) - (*) - (15.1) - (71.9) -
Sales Tax: Hillsborough County Tax Holiday ** - - - (360.9) - (360.9) -
Motor Fuel Taxes: Natural Gas Fuel Tax Delay (0.2) - (1.0) - (0.3) - (1.5) -
Corporate Income Tax: Graywater, Residential Systems, and Development
Incentives (**) - - - - - (**) -
Corporate Income Tax: Credit for Manufacturing of Human Breast Milk
Fortifiers (5.0) - - - - - (5.0) -
Subtotal (68.1) - (1.0) - (377.9) - (447.0) -
Bill Total(998.8) (195.7) (1.2) - (823.7) (49.5) (1,823.7) (245.2)
Pure Nonrecurring=(1,597.0)
(*) Impact less than $50,000; (**) Impact is indeterminate; (+/-) impact could be positive or negative.Recurring + Nonrecurring=(1,842.2)
(1) Recurring tax cut total (excl. appropriations) = (245.2)$
Pure nonrecurring tax cuts in FY 2023-24= (1,150.0)$
Pure nonrecurring tax cuts after FY 2023-24= (447.0)$
(1,842.2)$
2023-24
LocalGeneral Revenue Trust Fund Total