This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h7073.APC
DATE: 2/19/2024
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 7073 PCB WMC 24-05 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 16 Y, 6 N Rexford Aldridge
1) Appropriations Committee Trexler Pridgeon
SUMMARY ANALYSIS
The bill provides for the following tax-related provisions designed to benefit both families and businesses.
For sales taxes, the bill:
Creates a 14-day “back-to-school” tax holiday, in July and August 2024, for certain clothing, school
supplies, learning aids and puzzles, and personal computers; two 14-day “disaster preparedness”
holidays in June and parts of August and September of 2024 for specified disaster preparedness
supplies for families and their pets; a “Freedom Month” tax holiday for July 2024 for specified
recreational items and activities; and a seven-day “Tool Time” tax holiday in September for tools and
equipment needed in skilled trades;
Decreases the business rent tax rate to 1.25 percent for one year;
Expands the ability for a leasing company to pay tax up front on the purchase of a motor vehicle,
instead of collecting and remitting tax on the subsequent long-term lease or rental of the vehicle;
Requires all new local discretionary sales surtax ordinances to be approved by referendum at least
once every 10 years; and
Allows Duval County to levy an indigent care sales surtax if approved by voters.
For corporate income tax, the bill:
Adopts the Internal Revenue Code in effect on January 1, 2024, to conform with federal provisions; and
Creates a corporate income tax credit for businesses that hire persons with disabilities.
For property taxes, the bill:
Expands the ad valorem tax benefits for renewable energy source devices to include facilities used to
capture and convert biogas to renewable natural gas; and
Clarifies that for tangible personal property constructed by an electric utility, construction work in
progress is not deemed substantially completed unless all permits/approvals required for commercial
operation have been received or approved.
The bill also limits all new tourist development taxes (TDTs) to 6 years, requires existing TDTs to be approved
by voters by July 1, 2029, to continue (with exceptions), allows certain counties designated as an area of
critical state concern to use specified local tax surpluses to provide affordable housing for workers; provides
automatic filing extensions for sales tax dealers and corporate income taxpayers in certain emergencies;
increases the annual cap of the Strong Families Tax Credit Program to $40 million; limits documentary stamp
tax assessments for reverse mortgages; increases the percentage of revenue collected from the Sales Tax
Collection Enforcement Diversion Program that goes to the James Patrick Memorial Work Incentive Personal
Attendant Services and Employment Assistance (JP-PAS) Program; distributes $27.5 million for two additional
fiscal years to promote the breeding and racing of horses in Florida; and makes technical and clarifying
updates.
The total state and local government impact of the bill in Fiscal Year 2024-25 is -$619.6 million (-$31.9 million
recurring). See Fiscal Comments section for details.
The bill is effective July 1, 2024, except as otherwise provided.
STORAGE NAME: h7073.APC PAGE: 2
DATE: 2/19/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Sales Tax
Florida’s sales and use tax is a 6 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 75.2 percent for Fiscal Year 2023-24)
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
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-two times since 1998. The length of the
exemption periods has varied from three to fourteen days. The type and value of exempt items has also
varied. The following table describes the history of back-to-school sales tax holidays in Florida.
1
Commercial real estate rentals are subject to a 4.5 percent sales tax pursuant to s. 212.031(1)(c), F.S.
2
The Office of Economic and Demographic Research, 2023 Florida Tax Handbook, p. 16, available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2023.pdf (last visited Feb. 10, 2024).
3
Office of Economic and Demographic Research, Florida Local Government Financial Information Handbook 2023, p. 51, available at
http://edr.state.fl.us/Content/local-government/reports/lgfih23.pdf (last visited Feb. 10, 2024).
4
Id. STORAGE NAME: h7073.APC PAGE: 3
DATE: 2/19/2024
Effect of Proposed Changes
The bill provides for a sales tax holiday from July 29, 2024, through August 11, 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
July 24-August 6,
2023; Jan 1-14, 2024
14 days
each
$100 or less $100 or less $30 (Learning
Aids/Puzzles)
$1,500 or less $50 or less STORAGE NAME: h7073.APC PAGE: 4
DATE: 2/19/2024
find books, interactive or electronic books and toys intended to teach reading or math skills, and
stacking or nesting blocks or sets.”
Additionally, the bill exempts 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, calculators, 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 5 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
15, 2024, the dealer must notify the Department of Revenue 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 $309 million due to
Hurricane Idalia in 2023,
5
$19.6 billion due to Hurricanes Ian and Nicole in 2022,
6
$9.1 billion due to
Hurricane Michael in 2018,
7
$20.7 billion due to Hurricane Irma in 2017,
8
and $1.3 billion due to
Hurricanes Hermine and Matthew in 2016.
9
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.
10
Since 2006, the Legislature has enacted ten sales tax holidays related to disaster preparedness.
During these holidays, the following items were exempted as indicated:
5
Florida Office of Insurance Regulation, Catastrophe Report, available at: https://floir.com/home/idalia (last visited Feb. 4, 2024).
6
Florida Office of Insurance Regulation, Catastrophe Report, available at:
https://www.floir.com/home/ian ($19.3 billion) and https://www.floir.com/home/hurricane-nicole ($253 million) (last visited Feb. 4, 2024).
7
Florida Office of Insurance Regulation, Catastrophe Report, available at:
https://floir.com/Office/HurricaneSeason/HurricaneMichaelClaimsData.aspx (last visited Feb. 4, 2024).
8
Florida Office of Insurance Regulation, Catastrophe Report, available at:
https://www.floir.com/Office/HurricaneSeason/HurricaneIrmaClaimsData.aspx (last visited Feb. 4, 2024).
9
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 Feb. 4, 2024).
10
Florida Division of Emergency Management, Disaster Supply Kit Checklist, available at:
https://www.floridadisaster.org/planprepare/hurricane-supply-checklist/ (last visited Feb. 4, 2024). STORAGE NAME: h7073.APC PAGE: 5
DATE: 2/19/2024
Effect of Proposed Changes
The bill provides for sales tax holidays from June 1, 2024, through June 14, 2024, and from August 24,
2024, through September 6, 2024, 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;
11
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 sold together for
$75 or less.
12
Id.
13
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 (last visited Feb. 4, 2024).
14
This holiday also included portable power banks selling for $60 or less.
15
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).
16
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; specified items necessary for the evacuation of household pets, with item thresholds ranging
from $10 (wet pet food) to $100 (portable kennels or carriers); and common household consumable items for $30 or less, such as toilet
paper, paper towels, and dish soap.
Dates Length
TAX EXEMPTION THRESHOLDS
Reusable
Ice
Light
Source
Fuel
Contain-
ers
Batteries
Coolers
and Ice
Chests
Radios
Tie down
tools and
sheeting
Genera-
tors
May 21-June
1, 2006
11
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
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
13
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
14
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
15
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
May 27 –
June 9,
2023; Aug.
26 – Sept. 8,
2023
16
14 days
each
$20 or less $40 or
less
$50 or
less
$50 or
less
$60 or
less
$50 or
less
$100 or
less
$3000 or
less STORAGE NAME: h7073.APC PAGE: 6
DATE: 2/19/2024
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:
o Bags of dry dog or cat food weighing 50 or fewer pounds with a sales price of $100 or less
per bag;
o 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;
o Over-the-counter pet medications selling for $100 or less;
o Portable kennels or pet carriers selling for $100 or less;
o Manual can openers selling for $15 or less;
o Leashes, collars, and muzzles selling for $20 or less;
o Collapsible or travel-size food or water bowls selling for $15 or less;
o Cat litter weighing 25 or fewer pounds and selling for $25 or less;
o Cat litter pans selling for $15 or less;
o Pet waste disposal bags selling for $15 or less;
o Pet pads selling for $20 or less per box;
o Hamster or rabbit substrate selling for $15 or less; and
o Pet beds selling for $40 or less.
Freedom Month 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. In 2023, the Legislature enacted a 3-
month long summer sales tax holiday on similar specified recreational items and activities.
Effect of Proposed Changes
The bill provides for a one-month sales tax holiday from July 1, 2024, through July 31, 2024, for
specified admissions and items related to recreational activities. During the sales tax holiday, the
following admissions, if purchased during this month, are exempt from the state sales tax and county
discretionary sales surtaxes:
17
A live music event scheduled to be held between July 1, 2024, and December 31, 2024;
A live sporting event scheduled to be held between July 1, 2024, and December 31, 2024;
A movie shown in a movie theater between July 1, 2024, and December 31, 2024;
Entry to a museum, including annual passes;
Entry to state parks, including annual passes;
Entry to a ballet, play, or musical theatre performance scheduled to be held between July 1,
2024, and December 31, 2024;
Season tickets to ballet, play, music events, or musical theatre performances;
Entry to a fair, festival, or cultural event scheduled to be held between July 1, 2024, and
December 31, 2024; and
Use of or access to gyms and physical fitness facilities between July 1, 2024, and December
31, 2024.
During the sales tax holiday, the following items are exempt from the state sales tax and county
17
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: h7073.APC PAGE: 7
DATE: 2/19/2024
discretionary sales surtax:
Boating and Water Activity Supplies
o Life jackets, coolers, paddles, and oars selling for $75 or less;
o Recreational pool tubes, pool floats, inflatable chairs, and pool toys selling for $35 or less;
o Safety flares selling for $50 or less;
o Water skis, wakeboards, kneeboards, and recreational inflatable tubes or floats capable of
being towed selling for $150 or less;
o Paddleboards and surfboards selling for $300 or less;
o Canoes and kayaks selling for $500 or less; and
o Snorkels, goggles, and swimming masks selling for $25 or less.
Camping Supplies
o Tents selling for $200 or less;
o Sleeping bags, portable hammocks, camping stoves, and collapsible camping chairs selling
for $50 or less; and
o Camping lanterns or flashlights selling for $30 or less.
Fishing Supplies
18
o Rods and reels selling for $75 or less, if sold individually, or selling for $150 or less if sold as
a set;
o Tackle boxes or bags selling for $30 or less; and
o 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
o Sunscreen or insect repellant selling for less than $15 or less;
o Sunglasses selling for $100 or less;
o Binoculars selling for $200 or less;
o Water bottles selling for $30 or less;
o Hydration packs selling for $50 or less;
o Outdoor gas or charcoal grills selling for $250 or less;
o Bicycle helmets selling for $50 or less; and
o Bicycles selling for $500 or less.
Residential Pool Supplies
o Individual residential pool and spa replacement parts, nets, filters, lights, and covers selling
for $100 or less; and
o Residential pool and spa chemicals purchased by an individual selling for $150 or less.
Skilled Worker “Tool Time” Sales Tax Holiday
Current Situation
According to the Florida Department of Commerce, a number of skilled trade occupations
are in high demand.
19
The cost of educational materials, tools, and other items can be a barrier to
education, training, and employment for skilled trade workers.
In 2022 and 2023, the Legislature enacted a seven-day sales tax holiday that included exemptions on
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 1, 2024, through September 7, 2024,
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:
18
The exemption for fishing supplies does not apply to supplies used for commercial fishing purposes.
19
Regional Demand Occupations List, available at: https://lmsresources.labormarketinfo.com/library/rdol/rdol_all_2324.xlsx
(last visited Feb. 11, 2024). STORAGE NAME: h7073.APC PAGE: 8
DATE: 2/19/2024
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.
Sales Tax Exemption on Certain Motor Vehicles
Current Situation
Sales and Use Tax on Motor Vehicle Leases
The lease or rental of tangible personal property, including vehicles, is subject to state and local sales
and use tax.
20
When a motor vehicle is leased or rented in Florida, the entire amount of such rental is
taxable at the rate of 6 percent
21
of the gross proceeds derived from the lease or rental.
22
A “lease or
rental” is defined as the leasing or renting of tangible personal property and the possession or use of
property by the lessee or renter for a consideration, without transfer of title.
23
The lessor is required to
be registered as a dealer and to collect tax on the total amount of the lease or rental charges from the
lessee.
24
The lessor normally does not pay tax on the purchase of the vehicle, as that purchase is
considered a sale for resale, and instead tax is normally collected and remitted on each lease
payment.
25
Long Term Leases of Commercial Motor Vehicles
20
S. 212.05(1), F.S.
21
Discretionary county sales surtax, if any, is also owed if the 6 percent Florida state sales tax applies. See s. 212.054, F.S.
22
S. 212.05(1)(c), F.S.
23
S. 212.02(10)(g), F.S.
24
Rule 12A-1.007(13)(a)1, F.A.C.
25
Rule 12A-1.007(13)(a)2., F.A.C. STORAGE NAME: h7073.APC PAGE: 9
DATE: 2/19/2024
There is an exception to the general rule that sales tax is not paid on the purchase of the car and is
instead due and collected on lease or rental payments. The exception is for commercial motor vehicles
in certain long-term leases. For the exemption to apply, the lease or rental must be for a period of at
least 12 months, and the lessor must have paid sales tax on the vehicle when it was purchased.
26
In
addition, the lessor must be an established business, or part of or related to an established business,
that leases or rents commercial motor vehicles. Commercial motor vehicles are defined as any self-
propelled or towed vehicle used on the public highways in commerce to transport passengers or cargo,
if the vehicle has a gross vehicle weight rating of 10,000 pounds or more.
27
Effect of Proposed Changes
The bill expands the existing ability for a leasing company to pay tax up front on the purchase of a
motor vehicle, instead of collecting and remitting tax on the subsequent long-term lease or rental of the
vehicle, to apply to any motor vehicle as long as it is leased for use in the lessee’s trade or business.
“Motor vehicle” is defined as a self-propelled vehicle not operated upon rails or guideway, but not
including any bicycle, electric bicycle, motorized scooter, electric personal assistive mobility device,
mobile carrier, personal delivery device swamp buggy, or moped.
28
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.
29
Sales tax is due at the rate of 4.5 percent on the total rent paid for the right to use or occupy
commercial real property. Local option sales surtaxes can also apply.
30
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 percent to 2 percent,
effective the first day of the second month after the Office of Economic and Demographic Research
notifies the Department of Revenue that the Unemployment Compensation Trust Fund has reached its
pre-pandemic balance
31
. This notification is expected to happen in April 2024, resulting in the business
rent tax rate lowering to 2 percent beginning June 1, 2024.
32
Florida is the only state to charge sales tax on commercial rentals of real property.
Effect of Proposed Changes
26
S. 212.05(1)(c)3., F.S.
27
S. 316.003(14)(a), F.S.
28
S. 316.003(46), F.S.
29
Ch. 1969-222, L.O.F.
30
S. 212.031, F.S., and Rule 12A-1.070, F.A.C.
31
See s. 14, ch. 2021-2, as amended by s. 46, ch. 2021-31, L.O.F.
32
The Office of Economic & Demographic Research, Unemployment Compensation Trust Fund Forecast, available at
http://edr.state.fl.us/Content/conferences/unemployment-compensation-trust-fund/January2024ForecastSummary.pdf (last visited Feb.
10, 2024). STORAGE NAME: h7073.APC PAGE: 10
DATE: 2/19/2024
The bill reduces the business rent tax rate for one year to 1.25 percent, from July 1, 2024, through June
30, 2025.
Local Discretionary Sales Surtaxes
Counties have been granted limited authority to levy a discretionary sales surtaxes for specific
purposes on all transactions occurring in the county subject to the state tax imposed on sales, use,
services, rental, admissions, and other transactions by ch. 212, F.S., and on communications services
as defined in ch. 202, F.S.
33
A discretionary sales surtax is based on the rate in the county where the
taxable goods or services are sold, or delivered into, and is levied in addition to the state sales and use
tax of 6 percent. The surtax does not apply to the sales price above $5,000 on any item of tangible
personal property. This $5,000 cap does not apply to the sale of any service, rentals of real property, or
transient rentals. Rates range from 0.5 percent to 1.5 percent, and are levied by 65 of the 67 counties.
34
Approved purposes include:
a. Operating a transportation system in a charter county;
35
b. Financing local government infrastructure projects;
36
c. Providing additional revenue for specified small counties;
37
d. Providing medical care for indigent persons;
38
e. Funding trauma centers;
39
f. Operating, maintaining, and administering a county public general hospital;
40
g. Constructing and renovating schools;
41
h. Providing emergency fire rescue services and facilities; and
42
i. Funding pension liability shortfalls.
43
Discretionary Sales Surtax Referendums
Current Situation
Most local discretionary sales surtaxes may only be approved by referendum, while some may be
approved by a vote of the county commission.
44
Some of the surtaxes have set periods of time that they
can be enacted for before requiring reenactment, others have no such specified time limit.
The Florida Election Code provides the general requirements for a referendum.
45
The question
presented to voters must contain a ballot summary with clear and unambiguous language, such that a
“yes” or “no” vote on the measure indicates approval or rejection, respectively.
46
The ballot summary
should explain the chief purpose of the measure and may not exceed 75 words.
47
The ballot summary
33
The tax rates, duration of the surtax, method of imposition, and proceed uses are individually specified in s. 212.055, F.S. General
limitations, administration, and collection procedures are set forth in s. 212.054, F.S.
34
Discretionary Sales Surtax Information for Calendar Year 2024, Form DR-15DSS, available at
https://floridarevenue.com/Forms_library/current/dr15dss.pdf (last visited January 25, 2024).
35
S. 212.055(1), F.S.
36
S. 212.055(2), F.S.
37
S. 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.
38
S. 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).
39
S. 212.055(4)(b), F.S.
40
S. 212.055(5), F.S.
41
S. 212.055(6), F.S.
42
S. 212.055(8), F.S.
43
S. 212.055(9), F.S.
44
See generally s. 212.055, F.S.; but see s. 212.055(3), F.S. (small county surtax may be approved by extraordinary vote of the county
commission as long as surtax revenues are not used for servicing bond indebtedness), s. 212.055(4), F.S. (indigent care and trauma
center surtax may be approved by extraordinary vote of the county commission), and s. 212.055(5), F.S. (county public hospital surtax
may be approved by extraordinary vote of the county commission).
45
S. 101.161, F.S.
46
S. 101.161(1), F.S.
47
Id. STORAGE NAME: h7073.APC PAGE: 11
DATE: 2/19/2024
and title must be included in the resolution or ordinance calling for the referendum.
48
For some
discretionary sales surtaxes, the form of the ballot question is specified by statute.
49
Five types of elections exist under the Florida Election Code: primary elections, special primary
elections, special elections, general elections, and presidential preference primary elections.
50
Historically, voter turnout during a general election is higher than during other elections.
51
A referendum
to adopt, amend, or reenact a local government discretionary sales surtax under must be held at a
general election. A referendum to reenact an expiring surtax must be held at a general election
occurring within the 48-month period immediately preceding the effective date of the reenacted surtax
Such a referendum may appear on the ballot only once within the 48-month period.
52
Effect of Proposed Changes
The bill requires that a referendum be held in order to enact, reenact, extend, or amend any
discretionary sales surtax. The bill also establishes a 10-year maximum time limit for all new surtax
ordinances, except for the .25 percent trauma center surtax that may be levied for counties with a
population of less than 800,000 residents.
53
The bill retains the existing four-year limitation for that
surtax.
Indigent Care and Trauma Center Surtax
Current Situation
Section 212.055(4)(a), F.S., authorizes certain counties with a total population of at least 800,000 to
levy an Indigent Care and Trauma Center surtax not to exceed 0.5 percent. However, counties
consolidated with one or more municipalities (Duval County) and counties authorized to levy a county
public hospital surtax (Miami-Dade County) are not authorized to levy the Indigent Care and Trauma
Center surtax. The proceeds of the surtax must be used to fund health care services, including but not
limited to, primary care, preventative care, and hospital care for indigent and medically needy poor
54
persons, as well as Level I trauma center services.
55
This tax is imposed by ordinance approved by an
extraordinary vote of the governing body or conditioned upon approval by referendum.
56
Effect of Proposed Changes
The bill removes current statutory language excluding counties consolidated with one or more
municipalities
57
from the authority to levy the surtax. In addition, the bill removes the ability of a county
to authorize levy of the surtax by an extraordinary vote of the governing body of the county and instead
requires voters to approve such levy.
Tourist Development Taxes
The Local Option Tourist Development Act
58
authorizes counties to levy five separate taxes on
transient rental
59
transactions (tourist development taxes or TDTs).
48
Id.
49
See s. 212.055(4)(b)1., F.S.
50
S. 97.021(13), F.S.
51
Department of State, Division of Elections, Data and Statistics, Election Data, Voter Turnout, available at:
http://dos.myflorida.com/elections/data-statistics/elections-data/voter-turnout/ (last viewed Feb. 7, 2024).
52
S. 212.055(10), F.S.
53
S. 212.055(4)(b)4., F.S.
54
Medically needy poor are persons having “insufficient income, resources, and assets to provide the needed medical care without
using resources required to meet basic needs for shelter, food, clothing, and personal expenses; or not being eligible for any other state
or federal program, or having medical needs that are not covered by any such program; or having insufficient third-party insurance
coverage.” Section 212.055(4)(a)4.b., F.S.
55
S. 212.055(4)(a)3., F.S.
56
S. 212.055(4)(a)1., F.S.
57
Currently this is only Duval County.
58
S. 125.0104, F.S.
59
S. 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. STORAGE NAME: h7073.APC PAGE: 12
DATE: 2/19/2024
TDT Referenda
Current Situation
Prior to the authorization of any TDTs, the levy must be approved by a countywide referendum held at
a general election
60
and approved by a majority of the electors voting in the county.
61
A referendum to
reenact an expiring TDT must be held at a general election occurring within the 48-month period
immediately preceding the effective date of the reenacted tax and the referendum may only appear on
the ballot once with the 48-month period.
Each county proposing to levy the original 1 or 2 percent tax must adopt an ordinance for the levy and
imposition of the tax,
62
which must include a plan for tourist development prepared by the tourist
development council.
63
The plan for tourist development must include the anticipated net tax revenue to
be derived by the county for the two years following the tax levy, as well as a list of the proposed uses
of the tax and the approximate cost for each project or use.
64
The plan for tourist development may not
be substantially amended except by ordinance enacted by an affirmative vote of a majority plus one
additional member of the governing board.
65
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.
66
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.
67
A high tourism impact tax may be levied at an additional 1 percent.
68
A professional sports franchise facility tax may be levied up to an additional 1 percent.
69
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.
70
Effect of Proposed Changes
The bill provides that ordinances that levy and impose a TDT expire six years after the date the
ordinance is approved in a referendum, but may be renewed for a subsequent period of up to six years
if approved in a referendum. Further, any TDT in effect on June 30, 2024, must be renewed by an
ordinance approved in a referendum on or before July 1, 2029, to remain in effect. In order to avoid
impairment of existing local debt obligations, the bill provides exceptions for current levies if such levies
have been pledged for debt service.
60
See generally s. 125.0104, F.S.
61
Id.
62
S. 125.0104(4)(a), F.S.
63
S. 125.0104(4), F.S.
64
See s. 125.0104(4), F.S.
65
See s. 125.0104(4), F.S. The provisions found in s. 125.0104(4)(a)-(d), F.S., do not apply to the high tourism impact tax, the
professional sports franchise facility tax, or the additional professional sports franchise facility tax.
66
S. 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 2007-2024, available at
http://edr.state.fl.us/Content/local-government/data/data-a-to-z/g-l.cfm (last visited February 10, 2024). These counties are estimated to
realize $709 million in revenue from these taxes in the 2023-24 fiscal year. EDR, 2023 Local Government Financial Information
Handbook (January 2024), p. 259, http://edr.state.fl.us/Content/local-government/reports/lgfih23.pdf (last visited February 10, 2024).
67
S. 125.0104(3)(d), F.S. Fifty-six of the eligible fifty-nine counties levy this tax, with an estimated 2023-24 state fiscal year collection of
$291 million in revenue. EDR, 2023 Local Government Financial Information Handbook (January 2024), p. 263,
http://edr.state.fl.us/Content/local-government/reports/lgfih23.pdf (last visited February 10, 2024).
68
S. 125.0104(3)(m), F.S. Ten of the fourteen eligible counties levy this tax, with an estimated 2023-24 state fiscal year collection of
$201 million in revenue. Id. at p. 269.
69
S. 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-six of the sixty-seven eligible counties levy this additional tax, with an estimated 2023-24 state fiscal year collection of
$330 million in revenue. Id. at p. 267.
70
S. 125.0104(3)(n), F.S. Thirty-six of sixty-five eligible counties levy the additional professional sports franchise facility tax, with an
estimated 2023-24 state fiscal year collection of $252 million in revenue. Id. at p.273. STORAGE NAME: h7073.APC PAGE: 13
DATE: 2/19/2024
TDT Transfer in Areas of Critical State Concern
Current Situation
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, financing and constructing of public facilities needed
to increase tourist-related business activities in the county, beach restoration and maintenance
projects, convention centers, and professional sports franchise facilities.
71
Such uses are tied to the
specific TDT being levied.
Tourist Impact Tax
In addition to tourist development tax, any county that has created a land authority may levy a tourist
impact tax of 1 percent on all transient rental facilities within the county located in areas designated as
an area of critical state concern.
72
If more than 50 percent of the land area of the county is located in an
area of critical state concern, the tax may be levied countywide. The proceeds of the tax are used to
purchase property in the area of critical state concern and to offset the loss of ad valorem taxes due to
those land acquisitions.
73
Currently, Monroe County is the only county eligible to levy this tax.
74
Effect of Proposed Changes
The bill provides for a county that has been designated as an area of critical state concern that levies a
tourist development tax and a tourist impact tax to use its accumulated surplus from those taxes
collected through September 30, 2024, for the purpose of providing affordable housing for employees
of tourism-related businesses in the county. Any housing financed with funds from this surplus must be
used as affordable housing for a minimum of 99 years.
Local Food and Beverage Tax - Votes Needed in Referendum
Current Situation
In 1967, Florida authorized the municipal resort tax.
75
The law authorized cities and towns meeting
certain population requirements located within counties also meeting certain population requirements to
levy the tax.
76
The tax could be levied on rentals of hotel rooms and similar accommodations, and it
could also be levied on sales of food and certain beverages.
77
The municipal resort tax continues to be levied today in the cities of Bal Harbour, Surfside, and Miami
Beach, all of which are located within Miami-Dade County.
Florida has since authorized Miami Dade County to levy the local option food and beverage tax.
78
The
local option food and beverage tax consists of two taxes: a 2 percent tax on the sale of food,
beverages, and alcoholic beverages sold in hotels and motels, and a 1 percent tax on the sale of food,
beverages, and alcoholic beverages sold at an establishment licensed by the state to sell alcoholic
beverages on site.
79
71
S. 125.0104, F.S.
72
S. 125.0108, F.S.
73
S. 125.0108(3), F.S.
74
Office of Economic and Demographic Research, 2023 Florida Tax Handbook, 306 http://edr.state.fl.us/Content/revenues/reports/tax-
handbook/taxhandbook2023.pdf (last visited Feb. 10, 2024).
75
Ch. 67-930, L.O.F.
76
S. 1, ch. 67-930, L.O.F.
77
S. 1, ch. 67-930, L.O.F.
78
S. 212.0306, F.S.
79
S. 212.0306(1), F.S. STORAGE NAME: h7073.APC PAGE: 14
DATE: 2/19/2024
In 2023, the Legislature authorized the imposition of the 1 percent local option food and beverage tax in
a city or town that levies the municipal resort tax if the levy is approved by referendum in the city or
town at a general election.
80
Effect of Proposed Changes
The bill makes a technical change to clarify that in a referendum to adopt a 1 percent local option food
and beverage tax in a city or town that levies the municipal resort tax, the ordinance must pass by a
majority vote of the voters voting in the election, rather than by a majority of the registered voters.
Corporate Income Tax
Florida levies a 5.5 percent tax on the taxable income of corporations and financial institutions doing
business in Florida.
81
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.
82
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.
83
By doing this, Florida adopts any changes related to determining
federal taxable income that were made during the previous year. However, a state may choose to not
adopt or to “decouple” from particular changes made to the IRC in the prior year, and instead specify its
own treatment of the issue, or allow the previous IRC treatment to continue for Florida tax purposes.
Effect of Proposed Changes
The bill updates the Florida corporate income tax code by adopting the IRC as in effect on January 1,
2024.
This section of the bill is effective upon becoming law and applies retroactively to January 1, 2024.
Individuals with Unique Abilities Tax Credit
Current Situation
The Legislature adopted a number of provisions in 2016 aimed at improving the quality of life and
integration of individuals with disabilities in the workforce.
84
These included modifying the state’s equal
employment opportunity policy to provide enhanced executive agency employment opportunities for
those with a disability; creating the Employment First Act, which requires certain state agencies and
organizations to develop an agreement to improve employment outcomes for those with a disability;
85
and creating the Florida Unique Abilities Partner Program to recognize businesses that demonstrate
commitment to the independence of individuals who have a disability through employment or support.
86
Effect of Proposed Changes
80
S. 21, ch. 2023-157, L.O.F.
81
S. 220.11(2), F.S.
82
S. 220.12, F.S.
83
Ss. 220.03(1)(n) and (2)(c), F.S.
84
Ch. 2016-3, L.O.F.
85
The Employment First Florida website is available at https://www.employmentfirstfl.org/ (last visited February 7, 2024).
86
The Unique Abilities Partner Program is housed within the Department of Commerce; additional information is available at
https://floridajobs.org/unique-abilities-partner-program (last visited February 7, 2024). STORAGE NAME: h7073.APC PAGE: 15
DATE: 2/19/2024
The bill creates s. 220.19912, F.S., providing for a corporate income tax credit for corporations that
employ individuals with disabilities in this state. The credit is for $1 per hour worked, up to $1,000 per
employee per year. The maximum amount of credit that can be earned by a corporation in any year is
$10,000, and unused credits may be carried forward for up to five taxable years. The maximum credit
amount that can be awarded statewide is $5 million per state fiscal year. The credit is available for
three fiscal years, 2024-25, 2025-26, and 2026-27.
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.
Credits Available Against Multiple Taxes
Strong Families Tax Credit Program
Current Situation
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.
87
The organizations are certified by the
Department of Children and Families (DCF).
88
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.
89
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 must apply to DOR for an allocation of tax credit available for a given fiscal year.
90
The
application period begins at 12:01am on January 1
st
each year. 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.
91
In 2023, the Legislature increased the annual tax credit cap for all credits under this
program from $10 million to $20 million per state fiscal year.
92
DOR is required to approve the tax
credits on a first-come, first-served basis and must obtain the approval of DBPR before approving an
alcoholic beverage tax credit under s. 561.1213, F.S.
93
Effect of Proposed Changes
The bill increases the annual cap for the Strong Families program from $20 million per state fiscal year
to $40 million per state fiscal year, beginning in Fiscal Year 2024-25.
The bill also provides that the application window for the Strong Families tax credit begins at 9 a.m. on
the first day of the calendar year preceding the fiscal year that is not a Saturday, Sunday, or legal
holiday, beginning in Fiscal Year 2025-26. For Fiscal Year 2024-25, taxpayers may apply for the
additional $20 million credit beginning at 9:00 a.m. on July 1, 2024.
Ad Valorem Taxation
87
Ch. 2021-31., L.O.F.
88
See, https://www.myflfamilies.com/about/strong-families-tax-credit (last visited Feb. 4, 2024).
89
S. 402.62, F.S., along with ss. 211.0253, 212.1834, 220.1877, 561.1213, and 624.51057, F.S.
90
S. 402.62(5)(b), F.S.
91
S. 402.62(5)(b)1., F.S.
92
Ch. 2023-157, s. 38, L.O.F.; S. 402.62(5)(a), F.S.
93
S. 402.62(5)(b)1., F.S. STORAGE NAME: h7073.APC PAGE: 16
DATE: 2/19/2024
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,
94
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.
95
The property appraiser annually determines the “just value”
96
of property within the taxing authority and
then applies relevant exclusions, assessment limitations, and exemptions to determine the property’s
“taxable value.”
97
Tax bills are mailed in November of each year, and payment is due by March 31.
98
The tax is based on the taxable value of property as of January 1 of each year.
99
Ad valorem taxes are also levied on certain tangible personal property (TPP). “Tangible personal
property” means all goods, chattels, and other articles of value (not including vehicles) capable of
manual possession and whose chief value is intrinsic to the article itself.
100
All tangible personal
property is subject to ad valorem taxation unless expressly exempted.
101
Household goods and
personal effects,
102
items of inventory,
103
and up to $25,000 of assessed value for each tangible
personal property tax return
104
are exempt from ad valorem taxation.
TPP taxes apply to persons conducting business operations. Anyone who owns TPP and has a
proprietorship, partnership, corporation, who leases, lends, or rents property, or who is a self-employed
agent or contractor, must file a TPP return to the property appraiser by April 1 each year.
105
Tax Benefits for Property and Equipment used in Renewable Natural Gas Production
Current Situation
Limitations on Assessment of Real Property
Current law prohibits a property appraiser who is determining the assessed value of real property from
considering any increase in the just value of residential property or 80 percent of the just value of non-
residential property attributable to the installation of a renewable energy source device.
106
This law
applies to a renewable energy source device installed on or after January 1, 2013, on new and existing
residential real property, and to a renewable energy source device installed on or after January 1,
2018, to all other real property.
107
The statute defines the term “renewable energy source device” to
mean any of the following equipment that collects, transmits, stores, or uses solar energy, wind energy,
or energy derived from geothermal deposits:
Solar energy collectors, photovoltaic modules, and inverters;
Storage tanks and other storage systems, excluding swimming pools used as storage tanks;
Rockbeds;
Thermostats and other control devices;
Heat exchange devices;
94
Art. VII, s. 1(a), Fla. Const.
95
Art. VII, s. 9., Fla. Const.
96
Property must be valued at “just value” for purposes of property taxation, unless the Florida Constitution provides otherwise. (Art. 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).
97
Ss. 192.001(2) and (16), F.S.
98
Ss. 197.322 and 197.333, F.S.
99
S. 192.042, F.S.
100
S. 192.001(11)(d), F.S.
101
S. 196.001(1), F.S.
102
S. 196.181, F.S.
103
S. 196.185, F.S.
104
S. 196.183, F.S.
105
S. 193.062, F.S.; see also FLA. DEP’T OF REVENUE, Tangible Personal Property,
https://floridarevenue.com/property/Pages/Taxpayers_TangiblePersonalProperty.aspx (last visited Feb. 10, 2024).
106
S. 193.624(2), F.S.
107
S. 193.624(3), F.S. STORAGE NAME: h7073.APC PAGE: 17
DATE: 2/19/2024
Pumps and fans;
Roof ponds;
Freestanding thermal containers;
Pipes, ducts, refrigerant handling systems, and other equipment used to interconnect such
systems; however, such equipment does not include conventional backup systems of any
type;
Windmills and wind turbines;
Wind-driven generators;
Power conditioning and storage devices that use wind energy to generate electricity or
mechanical forms of energy; and
Pipes and other equipment used to transmit hot geothermal water to a dwelling or structure
from a geothermal deposit.
108
Partial Exemption of Tangible Personal Property
Tangible personal property (TPP) taxes apply to persons conducting business operations. Anyone who
owns TPP and has a proprietorship, partnership, corporation, who leases, lends, or rents property, or
who is a self-employed agent or contractor, must file a TPP return to the property appraiser by April 1
each year.
109
Each tangible personal property tax return is eligible for an exemption from ad valorem
taxation of up to $25,000 of assessed value.
110
A single return must be filed for each site in the county
where the owner of tangible personal property transacts business.
111
Current law provides an ad valorem tax exemption of 80 percent of the assessed value of a renewable
energy source device that is considered TPP, so long as the renewable energy source device
112
:
Is installed on real property on or after January 1, 2018;
Was installed before January 1, 2018, to supply a municipal electric utility located within a
consolidated government; or
Was installed after August 30, 2016, on municipal land as part of a project incorporating other
renewable energy source devices under common ownership on municipal land for the sole
purpose of supplying a municipal electric utility with specified megawatts of power.
Biogas and Renewable Natural Gas
Renewable Natural Gas (RNG) is biogas
113
that has been upgraded or refined for use in place of fossil
natural gas. Under Florida Law, RNG is defined in s. 366.91(f) F.S., as “anaerobically generated
biogas, landfill gas, or wastewater treatment gas refined to a methane content of 90 percent or greater
which may be used as a transportation fuel or for electric generation or is of a quality capable of being
injected into a natural gas pipeline.”
114
Sources of biogas that are later refined to produce RNG include organic waste from food, agriculture,
wastewater treatment and landfills.
115
In order to complete the process of converting biogas into RNG,
facilities capture the biogas, “clean” it to pipeline standards, and then inject it into the pipeline for
108
S. 193.624(1), F.S.
109
S. 193.062, F.S.; see also FLA. DEP’T OF REVENUE, Tangible Personal Property,
https://floridarevenue.com/property/Pages/Taxpayers_TangiblePersonalProperty.aspx (last visited February 4, 2024).
110
S. 196.183(1), F.S.
111
S. 196.183(1), F.S.
112
S. 196.182(1), F.S.; However, s. 196.182(2), F.S., does not allow an exemption on a device installed in a fiscally constrained county
if there was an application for a comprehensive plan amendment or planned unit development zoning filed with the county on or before
December 31, 2017.
113
Section 366.91(2)(a), F.S. defines biogas as “a mixture of gases produced by the biological decomposition of organic materials
which is largely comprised of carbon dioxide, hydrocarbons, and methane gas.”
114
See also s. 212.08(5)(v)1., F.S.
115
U.S. Environmental Protection Agency, An Overview of Renewable Natural Gas from Biogas, available at
https://www.epa.gov/sites/default/files/2020-07/documents/lmop_rng_document.pdf (last visited February 4, 2024). STORAGE NAME: h7073.APC PAGE: 18
DATE: 2/19/2024
customer use.
116
At least three facilities in Florida are converting biogas into RNG,
117
with more in
development.
118
Effect of Proposed Changes
The bill expands the ad valorem tax benefits for renewable energy source devices to include facilities
used to capture and convert biogas to RNG. Specifically, it expands the definition of “renewable energy
source device” used by both ss. 193.624 and 196.182, F.S., to include equipment that collects,
transmits, stores or uses energy derived from biogas, as defined in s. 366.91, F.S. Under the bill, such
equipment includes pipes, equipment, structural facilities, structural support, and any other machinery
integral to the interconnection, production, storage, compression, transportation, processing, and
conversion of biogas from landfill waste, livestock farm waste, including manure, food waste, or treated
wastewater into renewable natural gas as defined in s. 366.91, F.S.
The bill clarifies that equipment on the distribution or transmission side of the point at which a
renewable energy source device is interconnected to a natural gas pipeline or distribution system is not
a renewable energy source device.
The expanded benefits affect existing facilities that otherwise meet the timing requirements of current
law and facilities under construction, along with future facilities.
Construction Work in Progress
Current Situation
Section 192.001(11(d), F.S., defines “tangible personal property” as all goods, chattels, and other
articles of value (not including vehicles) capable of manual possession and whose chief value is
intrinsic to the article itself.
119
All tangible personal property is subject to ad valorem taxation unless
expressly exempted.
120
Household goods and personal effects,
121
items of inventory,
122
and up to
$25,000 of assessed value for each tangible personal property tax return
123
are exempt from ad
valorem taxation. Anyone who owns tangible personal property on January 1 of each year and who has
a proprietorship, partnership, or corporation, or is a self-employed agent or a contractor, must file a
tangible personal property return to the property appraiser by April 1 each year.
124
Section 192.001(11)(d), F.S., also defines "construction work in progress" as items consisting of
tangible personal property commonly known as fixtures, machinery, and equipment when in the
process of being installed in new or expanded improvements to real property and whose value is
materially enhanced upon connection or use with a preexisting, taxable, operational system or facility.
Construction work in progress is subject to ad valorem taxation when it is deemed to be substantially
completed, meaning when it is connected with the preexisting, taxable, operational system or facility.
Effect of Proposed Changes
116
Presentation on Florida’s Energy Future (Liquefied Natural Gas, Renewable Natural Gas, and Small Modular Reactors), Tampa
Electric Company (Dec. 6, 2023), slide 5, available at
https://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?PublicationType=Committees&CommitteeId=3226&Session=2024
&DocumentType=Meeting+Packets&FileName=ecc+12 -6-23.pdf (last visited February 4, 2024).
117
Id. at slide 10, 12-16.
118
Nasdaq, Chesapeake Utilities Corporation to Develop its First RNG Facility in Florida (Feb. 21, 2023),
https://www.nasdaq.com/press-release/chesapeake-utilities-corporation-to-develop-its-first-rng-facility-in-florida-2023-02 (last visited
February 4, 2024) (Chesapeake Utilities Corporation is installing a dairy manure renewable natural gas facility in Madison County,
Florida).
119
S. 192.001(11)(d), F.S.
120
S. 196.001(1), F.S.
121
S. 196.181, F.S.
122
S. 196.185, F.S.
123
S. 196.183, F.S.
124
S. 193.062, F.S.; see also DOR, Tangible Personal Property,
https://floridarevenue.com/property/Pages/Taxpayers_TangiblePersonalProperty.aspx (last visited Feb. 10, 2024). STORAGE NAME: h7073.APC PAGE: 19
DATE: 2/19/2024
The bill amends s. 192.001(11)(d), F.S., to clarify that for the purpose of taxing tangible personal
property constructed or installed by an electric utility, construction work in progress is not deemed
substantially completed unless all permits or approvals required for commercial operation have been
received or approved.
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.
125
The tax on deeds and other documents related to real property is 70 cents per $100,
126
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.
127
Documentary stamp taxes levied on
promissory notes, nonnegotiable notes, and written obligations may not exceed $2,450.
128
Reverse Mortgages
Current Situation
Equity conversion mortgages (reverse mortgages) give older homeowners the option to borrow money
in an amount based on their home’s equity.
129
When the homeowner moves or dies, the proceeds from
the sale of the home are used to pay off the reverse mortgage loan.
130
Reverse mortgages are
regulated by the U.S. Department of Housing and Urban Development (HUD), and the only federally
insured reverse mortgage product is the Home Equity Conversion Mortgage.
131
The principal limit amount is the maximum amount that a homeowner can borrow under the loan.
132
In
calculating the principal limit amount, lenders look to the “maximum claim amount,” which is the lesser
of the appraised value of the home, the sale price of the home being purchased, or the maximum limit
that HUD will insure ($1,089,300).
133
HUD requires certain reverse mortgage lenders to state the
maximum mortgage amount as 150 percent of the maximum claim amount in the mortgage
documents.
134
This amount is required because the loan payments are secured not only by the current
value of the house but also by any possible appreciation in value.
135
In Florida, if a mortgage is recorded in the state, it is subject to the documentary stamp tax on the full
amount of the obligation secured by the mortgage, regardless of whether the indebtedness is
contingent.
136
Currently, the documentary stamp tax is applied to the entire mortgage obligation amount
rather than being applied to the principal limit amount.
Effect of Proposed Changes
125
Florida Department of Revenue, Florida Documentary Stamp Tax, available at
https://floridarevenue.com/taxes/taxesfees/pages/doc_stamp.aspx (last visited Feb. 9, 2024).
126
S. 201.02(1)(a), F.S.
127
Ss. 201.07 and 201.08(1)(b), F.S.
128
S. 201.08(1)(a), F.S.
129
Federal Trade Commission, Reverse Mortgages, https://consumer.ftc.gov/articles/reverse-mortgages (last visited Feb. 9, 2024).
130
Id.
131
Id.
132
Consumer Financial Protection Bureau, Reverse Mortgages Key Terms, https://www.consumerfinance.gov/consumer-tools/reverse-
mortgages/answers/key-terms/ (last visited Feb. 9, 2024).
133
Id.
134
U.S. Department of Housing and Urban Development, Home Equity Conversion Mortgages Handbook, ch. 6.6, available at:
https://www.hud.gov/sites/documents/42351C6HSGH.PDF (last visited Feb. 10, 2024).
135
Id.
136
Rule 12B-4.052(1)(b), F.A.C. STORAGE NAME: h7073.APC PAGE: 20
DATE: 2/19/2024
For reverse mortgages, the bill requires the documentary stamp tax to be applied to the principal limit
amount and not the entire mortgage obligation amount. The bill defines “principal limit,” and requires
the documentary stamp tax be calculated on the principal limit at the time of closing. The bill clarifies
that the changes to the act apply retroactively, but do not create a right to a refund or credit of any tax
paid before the effective date of the act.
Tax Administration
Extension of Filing Times
Current Situation
Florida Sales and Use Tax Filings
Dealers are businesses and entities that collect state sales tax on items and services the dealer sells.
Dealers estimate their tax liability and remit the sales tax to the Department of Revenue, usually on a
monthly basis.
137
Dealers are required to file a return and remit the taxes owed to the state by the 20
th
day of each month.
138
Failure by a dealer to timely file a return or remit the tax owed results in a penalty
in the amount of 10 percent of the tax shown on the return.
139
However, the Executive Director of the
Department of Revenue has the authority to extend the stipulated due date for tax returns and
accompanying tax payments if there is a declared state of emergency.
140
Corporate Income Tax Return Filings
A corporate income taxpayer is required to file a Florida income tax return in every year that it is liable
for Florida corporate income tax or is required to file a federal income tax return.
141
The due dates to file
several tax returns related to corporate income tax are tied to the federal law. When a Florida
corporation is granted an extension of time to file its federal return, the taxpayer may file an extension
of time to file its Florida return. If granted, the extended Florida due date will be the 15th day after the
expiration of the 6-month federal extension.
142
the Executive Director of the Department of Revenue
has the authority to extend the stipulated due date for tax returns and accompanying tax payments if
there is a declared state of emergency.
143
In addition, the Department of Revenue can grant an
extension or extensions of time for the filing of any return for good cause upon request.
144
Effect of Proposed Changes
The bill requires the Department of Revenue to grant an automatic 10-day extension from the due date
for filing a return and remitting sales tax if a declaration of a state of emergency is issued by the
Governor within 5 business days before the 20
th
day of the month. The extension only applies to
taxpayers within the counties affected by the state of emergency.
The bill requires the Department of Revenue to grant a 15-day automatic extension for Florida
corporate income tax returns beyond the due date of a federal corporate income tax return that has
been extended by the IRS due to a federally-declared disaster.
Sales Tax Collection Enforcement Diversion Program
Current Situation
137
S. 212.11 (1), F.S.
138
S. 212.11(1)(b), F.S.
139
S. 212.12(2)(a), F.S.
140
S. 213.055(2)(a), F.S.
141
S. 220.22, F.S.
142
For corporate taxpayers with a taxable year ending on June 30
th
, the extension is 15 days 7 months from the original due date. S.
220.222(2)(d), F.S.
143
S. 213.055(2)(a), F.S.
144
S. 220.222(1)(b), F.S. STORAGE NAME: h7073.APC PAGE: 21
DATE: 2/19/2024
The Department of Revenue, in cooperation with the Florida Association of Centers for Independent
Living (FACIL) and the Florida Prosecuting Attorneys Association, was required to select judicial circuits
to participate in the tax collection enforcement diversion program.
145
That program required state
attorney’s offices to collect revenue due from persons who have not remitted their collected sales tax.
Seventy-five percent of the funding collected through this program is deposited into a special account to
administer the James Patrick Memorial Work Incentive Personal Attendant Services and Employment
Assistance Program (JP-PAS Program).
146
The tax collection enforcement diversion program is operated in state attorney’s offices in the following
eight Florida circuits:
147
The Fourth Judicial Circuit (Clay, Duval, Nassau).
The Sixth Judicial Circuit (Pasco, Pinellas).
The Ninth Judicial Circuit (Orange, Osceola).
The Eleventh Judicial Circuit (Miami-Dade).
The Thirteenth Judicial Circuit (Hillsborough).
The Fifteenth Judicial Circuit (Palm Beach).
The Seventeenth Judicial Circuit (Broward).
The Twentieth Judicial Circuit (Charlotte, Collier, Glades, Hendry, Lee).
The JP-PAS Program assists individuals employed in Florida, or in counties adjacent to Florida, with
Personal Care Attendant (PCA) services that assist them with activities of daily living, such as dressing,
grooming, or eating.
148
The JP-PAS Program is administered by the Florida Association of Centers for
Independent Living (FACIL) and provides participants with reimbursement for expenses for PCA
services, up to $2,160 a month.
149
Prior to 2021, 50 percent of the revenue from the tax collection enforcement diversion program was
given to FACIL for the administration of the JP-PAS Program.
150
In 2021, the Legislature increased the
amount to 75 percent of the revenue going to FACIL.
151
The Revenue Estimating Conference (REC) estimated
152
that the sales tax collection enforcement
diversion program will generate approximately $3.6 million in revenue in Fiscal Year 2023-24. The REC
projects that the revenue from the sales tax collection enforcement diversion program will remain flat
for the next five years.
153
Effect of Proposed Changes
The bill increases the percentage of revenue from the sales tax collection enforcement diversion
program that is provided to FACIL for the administration of the JP-PAS Program from 75 percent to 100
percent.
Distribution for Horse Breeding and Racing Promotion
Current Situation
145
S. 413.4021, F.S.
146
S. 413.4021(1), F.S.
147
Florida Association of Centers for Independent Living, The James Patrick Memorial Work Incentive Personal Attendant Services and
Employment Assistance Program Policies and Procedures for Program Participants, available at: https://floridacils.org/pca-services-
program/ (last visited Feb. 3, 2024).
148
S. 413.402, F.S
149
Id.
150
S. 413.4021, F.S.
151
The remaining 25 percent of the revenue from the tax collection enforcement diversion program is placed into General Revenue for
the state.
152
The Revenue Estimating Conference is required to annually project the amount of funds expected to be generated from the tax
collection enforcement diversion program pursuant to s. 413.4021(3), F.S.
153
Revenue Estimating Conference, Tax Collection Enforcement Diversion Program, available at:
http://edr.state.fl.us/Content/conferences/generalrevenue/taxcollectiondivprog.pdf (last visited Feb. 3, 2024). STORAGE NAME: h7073.APC PAGE: 22
DATE: 2/19/2024
Sales Tax Distributions
The disposition of sales and use taxes, certain communications services taxes, and certain gross
receipts taxes
154
is provided for in s. 212.20, F.S. That statute provides the reallocation of tax revenue
to a series of trust funds,
155
distributions to the General Revenue Fund,
156
and other distributions in
accordance with other sections of law (e.g., to the Revenue Sharing Trust Funds for Counties and
Municipalities).
157
Horse Breeding and Racing in Florida
The Florida horse industry generates an annual $6.8 billion impact on the gross domestic product of
Florida, along with providing nearly 250,000 jobs. The Florida Thoroughbred industry has, in addition to
the economic impact, produced one Triple Crown winner, six Kentucky Derby winners, seven
Preakness winners, six Belmont Stakes winners, and 52 national champions.
The Florida Thoroughbred Breeders’ and Owners’ Association (sometimes styled as the “Florida
thoroughbred Breeders’ Association, Inc.”) is a not-for-profit that represents more than 1,300
thoroughbred breeders and owners in Florida. The Association works with the Florida Department of
Agriculture and Consumer Services to promote and market the industry both nationally and
internationally, as well as providing awards to promote Florida Thoroughbreds in the industry.
The Florida Horseman’s Benevolent & Protective Association (sometimes styled as the “Florida
Thoroughbred Horsemen’s Association), is a not-for profit representing more than 5,000 Thoroughbred
horse owners and trainers who do business in Florida. The organization promotes relationships with
racetracks, community, and government.
The horseman’s association representing the majority of the thoroughbred racehorse owners and
trainers at any particular facility received a 1 percent distribution from the purses at that facility for
authorized uses. The awards for breeders, trainers, and owners are generally provided for in statute,
although the specific awards, procedures, and payments may vary according to adopted plans.
Tampa Bay Downs is one of America’s oldest and most well-maintained tracks, and is the only
Thoroughbred race track on the west coast of Florida. It opened in 1926, and has been used for
Thoroughbred racing for most of the intervening years, subject to economic downturns, wars, and
natural disasters.
Gulfstream Park Racing, located between Fort Lauderdale and Miami, has been in operation since the
1940s, and is probably most well known as the host of the G1 Florida Derby, a race that has produced
the Kentucky Derby winner 24 times in 65 years.
Florida Agricultural Promotional Campaign
In 1990, the Legislature created the Florida Agricultural Promotional Campaign Trust Fund to support
the Florida Agricultural Promotional Campaign.
158
The goal of the campaign was to “increase
consumer awareness and expand the market for Florida’s agricultural products.”
159
The Trust Fund,
within the Department of Agriculture and Consumer Services, holds funding for implementing the
Florida Agricultural Promotional Campaign.
160
The campaign is probably best well known for the “Fresh
From Florida” marketing campaign and related logos.
161
154
S. 212.20(6), F.S., provides distribution requirements for chapter 212, communications services tax under ss. 202.18(1)(b) and
(2)(b), and gross receipts taxes under s. 203.01(1)(a)3., F.S.
155
E.g., s. 212.20(6)(a) and (b), F.S.
156
E.g., s. 212.20(6)(c)1., F.S.
157
E.g., ss. 212.20(6)(c)2., (d)3., 4., and 6., F.S.
158
Ch. 90-323, L.O.F., s. 16
159
S. 571.22, F.S.
160
S. 571.26, F.S.
161
More information about “Fresh From Florida” is available on the Department of Agriculture and Consumer Services website at
https://www.fdacs.gov/Agriculture-Industry/Fresh-From-Florida-Industry-Membership (last visited Feb. 10, 2024). STORAGE NAME: h7073.APC PAGE: 23
DATE: 2/19/2024
In 2023, the Legislature enacted a provision to distribute $27.5 million of General Revenue to the
Florida Agricultural Promotional Campaign Trust Fund for the promotion of Florida thoroughbred
breeding and racing in Florida for two years.
162
The Legislature required funds be distributed as follows:
$5 million to the Florida Thoroughbred Breeders’ Association, Inc., to be used for:
o Purses or purse supplements for Florida-bred or Florida-sired horses that participate in
Florida thoroughbred races.
o Awards to breeders of Florida-bred horses that win, place, or show in Florida thoroughbred
races.
o Awards to owners of stallions who sired Florida-bred horses that win Florida thoroughbred
stakes races, if the stallions are registered with the association as Florida stallions.
o Other racing incentives connected to Florida-bred or Florida-sired horses registered with the
association that participate in thoroughbred races in Florida.
o Awards administration.
o Promotion of the Florida thoroughbred breeding industry.
$5 million to Tampa Bay Downs, Inc., to be used as purses in thoroughbred races conducted at
its pari-mutuel facilities and for the maintenance and operation of that facility, pursuant to an
agreement with its local majority horsemen’s group.
$15 million to Gulfstream Park Racing Association, Inc., to be used as purses in thoroughbred
races conducted at its pari-mutuel facility and for the maintenance and operation of its facilities,
pursuant to an agreement with the Florida Horsemen’s Benevolent and Protective Association,
Inc.
$2.5 million dollars to be distributed as follows:
o $2 million dollars to Gulfstream Park Racing Association, Inc., to be used as purses and
purse supplements for Florida-bred or Florida-sired horses registered with the association
that participate in thoroughbred races at the permitholder’s pari-mutuel facility, pursuant to a
written agreement filed with the department establishing the rates, procedures, and eligibility
requirements entered into by the permitholder, the association, and the Florida Horsemen’s
Benevolent and Protective Association, Inc.
o $500,000 to Tampa Bay Downs, Inc., to be used as purses and purse supplements for
Florida-bred or Florida-sired horses registered with the association that participate in
thoroughbred races at the permitholder’s pari-mutuel facility, pursuant to a written
agreement filed with the department establishing the rates, procedures, and eligibility
requirements entered into by the permitholder, the association, and the local majority
horsemen’s group at the permitholder’s pari-mutuel facility.
The provision requiring these distributions will be repealed in 2025 unless reviewed and saved from
repeal by the Legislature.
163
Effect of Proposed Changes
The bill extends for two years the current distributions of $27.5 million in General Revenue in the same
manner in which the funding is distributed now. The distributions will be repealed in 2027 unless
reviewed and saved from repeal by the Legislature.
Technical Updates
Current Situation
The antiquated term “tax assessor” is used in several places in statute.
Effect of Proposed Changes
162
S. 39, ch. 2023-157, L.O.F.
163
S. 212.20(5)(d)6.f., F.S. STORAGE NAME: h7073.APC PAGE: 24
DATE: 2/19/2024
The bill makes technical changes to update antiquated language in statute. References to the “tax
assessor” are updated with the terms “property appraiser” and “tax collector” as appropriate.
B. SECTION DIRECTORY:
Section 1: Amends s. 125.0104, F.S., revising the referendum requirements for levying tourist
development taxes.
Section 2: Amends s. 192.001, F.S. clarifying when a construction work in progress project is
deemed substantially completed if owned by an electric utility.
Section 3: Provides that the changes made under 192.001, F.S., first apply to the 2025 ad valorem
tax roll.
Section 4: Amends s. 193.624, F.S., expanding a definition to include facilities used to convert
biogas to renewable natural gas.
Section 5: Provides that the changes made under s. 193.624, F.S., first apply to the 2025 ad
valorem tax roll.
Section 6: Amends s. 194.037, F.S., updating antiquated statutory language.
Section 7: Amends s. 201.08, F.S., requiring the documentary stamp tax be applied only to the
principal limit amount of a home equity conversion mortgage.
Section 8: Provides that changes made under s. 201.08, F.S., apply retroactively, but no right is
created to a refund or credit of tax paid before the effective date of the act.
Section 9: Amends s. 212.0306, F.S., clarifying that an ordinance to adopt a local option food and
beverage tax in certain municipalities must pass by a majority vote of the voters voting in
the election.
Section 10: Amending s. 212.031, F.S., reducing the business rent tax rate for one year.
Section 11: Amends s. 212.05, F.S., allowing for alternative taxation of motor vehicles when such
vehicles will be used under certain long-term leases.
Section 12: Amending s. 212.055, F.S., revising referendum requirements for the levy of
discretionary sales surtaxes. Removing language to allow consolidated counties to levy
the indigent care and trauma center surtax.
Section 13: Amending s. 212.11, F.S., allowing sales tax return filing and remittance extensions if a
disaster declaration occurs at a specified time.
Section 14: Amends s. 212.20, F.S., extending certain funding for the promotion of horse racing and
breeding in the state.
Section 15: Amends s. 220.02, F.S., revising the order of tax credits to conform with other provisions
of the bill.
Section 16: Amends s. 220.03, F.S., adopting the Internal Revenue Code in effect on January 1,
2024.
Section 17: Provides that changes made to s. 220.03, F.S., take effect upon becoming law and
operate retroactively to January 1, 2024.
Section 18: Creates s. 220.1992, F.S., establishing a corporate income tax credit for employing
individuals with disabilities in this state.
Section 19: Amends s. 220.222, F.S., allowing the filing deadline for corporate income returns to be
extended during federally declared disasters.
Section 20: Amends s. 374.986, F.S., updating antiquated language.
Section 21: Amends s. 402.62, F.S., modifying the application timing under the Strong Families tax
credit program and increasing the Strong Families tax credit cap.
Section 22: Clarifies duties of the Department of Revenue regarding the Strong Families tax credit
application.
Section 23: Amends s. 413.4021, F.S., increasing the amount of revenue to be deposited from the
Tax Collection Diversion Program.
Section 24: Amends s. 571.265, F.S., relating to distributions of General Revenue to promote horse
racing and breeding and extending the repeal date.
Section 25: Provides exemptions from the sales and use tax for specified disaster preparedness
supplies during specified timeframes.
Section 26: Provides exemptions from the sales and use tax for certain admissions to music events,
sporting events, cultural events, specified performances, movies, museums, state parks,
and fitness facilities, during specified timeframes and for certain boating and water STORAGE NAME: h7073.APC PAGE: 25
DATE: 2/19/2024
activity, camping, fishing, general outdoor supplies, and pool supplies during a specified
timeframe.
Section 27: 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 28: Provides an exemption from sales and use tax on the retail sale of certain tools used by
skilled trade workers during a specified timeframe.
Section 29: Provides for a county designated as an area of critical state concern to use surplus
tourist development and impact taxes to provide affordable housing for certain
individuals.
Section 30: Authorizes the Department of Revenue to adopt emergency rules to implement several
provisions of the act.
Section 31: 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 sales tax benefits: a 14-day sales tax holidays for back-to-
school; two 14-day sales tax holidays for disaster preparation supplies; a one-month holiday for
recreational items and activities; a 7-day sales tax holiday for skilled worker tools; and a reduction in
the sales tax on commercial rent to 1.25 percent for one year. The bill also extends the sales tax filing
and remittance deadlines if a state of emergency is declared within a certain period of time.
The bill also benefits corporate income taxpayers in Florida by creating a corporate income tax credit
for businesses that hire persons with disabilities and extending filing deadlines when a federal disaster
has been declared.
The bill expands the ad valorem tax benefits for renewable energy source devices to include facilities
used to capture and convert biogas to renewable energy source devices.
D. FISCAL COMMENTS:
The Revenue Estimating Conference estimated the total state and local impact of the bill in Fiscal Year
2024-25 to be -$619.6 million (-$31.9 million recurring), of which -$519.4 million (-$24.2 million
recurring) is on General Revenue, -$3.1 million (-$3.2 million recurring) is on state trust funds, and
-$97.1 million (-$4.5 million recurring) is on local government (see following table). Nonrecurring
General Revenue impacts in years beyond Fiscal Year 2024-25 total -$65.0 million. 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, STORAGE NAME: h7073.APC PAGE: 26
DATE: 2/19/2024
reflecting temporary tax reductions. The total of -$698.3 million in tax reductions in the bill is the sum of
-$31.9 million (recurring), -$601.4 million (pure nonrecurring in Fiscal Year 2024-25), and -$65.0 million
(pure nonrecurring after Fiscal Year 2024-25).
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 ad valorem tax benefits for renewable energy source devices to include
facilities used to capture and convert biogas to renewable energy source devices, and the bill
clarifies when a construction work in progress is deemed substantially completed for property owned
by an electric utility; however, an exemption may apply if those provisions have an insignificant fiscal
impact.
2. Other:
None.
B. RULE-MAKING AUTHORITY: Fiscal Year 2024-25 Estimated Fiscal Impacts (Millions of $)
Cash Recur1st YearRecur1st YearRecur1st YearRecur
Sales Tax: Prepayment of Sales Tax on Motor Vehicle Leases 9.1 (1.1) * (*) 2.4 (0.2) 11.5 (1.3)
Sales Tax: Business Rent Tax - One Year Reduction to 1.25% (273.3) - (*) - (35.4) - (308.7) -
Sales Tax: Freedom Month Sales Tax Holiday (71.4) - (*) - (19.1) - (90.5) -
Sales Tax: Back-to-School Sales Tax Holiday (76.7) - (*) - (20.5) - (97.2) -
Sales Tax: Disaster Preparedness Sales Tax Holidays (63.3) - (*) - (16.9) - (80.2) -
Sales Tax: Tool Time Sales Tax Holiday (15.7) - (*) - (4.1) - (19.8) -
Sales Tax: Distribution for JP-PAS from recovered sales tax from Tax
Collection Diversion Program (0.8) (0.8) - - (0.1) (0.1) (0.9) (0.9)
Ad Valorem: Renewable Energy Source Device Assessment Limitation - - - - (0.5) (1.3) (0.5) (1.3)
Ad Valorem: Construction Work in Progress - - - - (2.9) (2.9) (2.9) (2.9)
Corp. Inc. Tax: Adoption of the Internal Revenue Code - - - - - - - -
Corp. Inc. Tax: Persons with Unique Abilities Tax Credit - Three Years (5.0) - - - - - (5.0) -
Doc. Stamp Tax: Reverse Mortgages (2.3) (2.3) (3.1) (3.2) - - (5.4) (5.5)
Tourist Development Tax: Voter Approval of New and Existing TDT; Limited to
6 Years - - - - - - - -
Tourist Development Tax: One Time Use of Existing TDT Funds for
Affordable Housing in Monroe County - - - - - - - -
Local Sales Taxes: Voter Approval of New Discretionary Sales Surtaxes;
Limited to 10 Years - - - - - - - -
Local Sales Taxes: Allow Duval to Levy Indigent Care Sales Surtax - - - - - 0/** - 0/**
Local Option Tax: Local Food & Beverage Tax - Voter Clarification - - - - - - - -
Multiple Taxes: Strong Families - Increase Cap (20.0) (20.0) - - - - (20.0) (20.0)
Multiple Taxes: Automatic Extension of Time for Returns - - - - - - - -
FY 2024-25 Total(519.4) (24.2) (3.1) (3.2) (97.1) (4.5) (619.6) (31.9)
Non-recurring Impacts After FY 2024-25
Cash Cash Cash Cash
Sales Tax: Distribution for Horse Breeding and Racing Promotion - 2 years
extension (55.0) - - - - - (55.0) -
Corp. Inc. Tax: Persons with Unique Abilities Tax Credit - Three Years (10.0) - - - - - (10.0) -
Subtotal for Out Years(65.0) - - - - - (65.0) -
Bill Total(584.4) (24.2) (3.1) (3.2) (97.1) (4.5) (684.6) (31.9)
Pure Nonrecurring=(666.4)
Recurring + Nonrecurring=(698.3)
General Revenue Trust Fund Local Total
General Revenue Trust Fund Local TotalTax Package
FY 2024-25
(*) Impactless than $100,000; (**) Impact is indeterminate; (+/-) impact could be positive or negative.
(1) Recurring tax cut total (excl.appropriations) = $ 31.9 million
Pure nonrecurring tax cuts in FY 2024-25= $601.4million
Pure nonrecurring tax cuts after FY 2024-25= $ 65.0 million
$698.3 million STORAGE NAME: h7073.APC PAGE: 27
DATE: 2/19/2024
The bill provides the Department of Revenue rulemaking authority to implement the creation of the
Individuals with Unique Abilities corporate income tax credit. The bill also provides the Department of
Revenue emergency rulemaking authority to implement several provisions of the act.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 14, 2024, the Ways & Means Committee adopted a technical amendment to more closely
align the bill language with current law regarding local tax referenda.
This analysis is drafted to the bill as approved by the Ways & Means Committee.