Florida House Bill H7073 Analysis / Analysis

                     
This document does not reflect the intent or official position of the bill sponsor or House of Representatives. 
STORAGE NAME: h7073z.DOCX 
DATE: 3/22/2024 
HOUSE OF REPRESENTATIVES STAFF FINAL BILL ANALYSIS  
 
BILL #: CS/HB 7073          PCB WMC 24-05    Taxation 
SPONSOR(S): Appropriations Committee and Ways & Means Committee, McClain and others 
TIED BILLS:   IDEN./SIM. BILLS:      
 
 
 
 
FINAL HOUSE FLOOR ACTION: 110 Y’s 
 
0 N’s GOVERNOR’S ACTION: Pending 
 
 
SUMMARY ANALYSIS 
CS/HB 7073 passed the House on March 1, 2024. The bill was amended in the Senate on March, 8, 2024, and 
returned to the House. The House concurred in the Senate amendment and subsequently passed the bill as 
amended on March 8, 2024.  
 
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 for certain clothing and school supplies; 
two 14-day “disaster preparedness” holidays for specified disaster preparedness supplies; a “Freedom Month” 
tax holiday for specified recreational items and activities; and a seven-day “Tool Time” tax holiday for certain 
tools; expands the ability of a leasing company to pay tax up front on certain motor vehicle purchases; allows 
Duval County to levy an indigent care sales surtax if approved by voters; and provides how a discretionary 
sales surtax may be temporarily suspended when it is found to be invalid. 
 
For corporate income tax, the bill: adopts the Internal Revenue Code in effect on January 1, 2024, to conform 
with federal provisions; creates a temporary corporate income tax credit for businesses that hire persons with 
disabilities; and makes changes to the existing tax credit for certain railroad expenditures. 
 
For property taxes, the bill: expands the ad valorem tax benefits for renewable energy source devices to 
include certain facilities; clarifies when a certain type of construction work in progress is deemed substantially 
completed; extends the time in which a homestead owner has to start the repair of a damaged homestead to 
keep the homestead exemption; provides when property owners must pay certain back taxes; provides an 
appropriation to offset ad valorem revenue losses experienced by fiscally constrained counties that refunded 
certain property taxes; and makes various revisions to relating to affordable housing property tax exemptions. 
 
The bill also creates insurance premium deductions for residential and flood policies and creates a 
corresponding insurance premium tax credit for insurers; provides automatic filing extensions for sales tax 
dealers and corporate income taxpayers in certain emergencies; reduces various natural gas fuel tax rates by 
half for 2026; increases the annual cap of the Strong Families Tax Credit Program to $40 million and revises 
criteria for a qualifying charitable organization; allows businesses to take a credit against various types of tax 
liabilities for expenses incurred relating to employee childcare; provides a $30 million distribution from 
beverage tax collections to specified medical research facilities; limits documentary stamp tax assessments for 
reverse mortgages; temporarily exempts from the documentary stamp tax certain written obligations given by a 
customer to an alarm system contractor; increases the percentage of revenue collected from the Sales Tax 
Collection Enforcement Diversion Program that goes to the James Patrick Personal Attendant Services 
Program (JP-PAS); makes permanent a yearly distribution of $27.5 million to promote the breeding and racing 
of horses in Florida; and makes technical, administrative, and clarifying updates. 
 
The total state and local government impact of the bill in Fiscal Year 2024-25 is estimated to be -$508.8 million 
(-$86.9 million recurring). See Fiscal Comments section for details. 
 
Subject to the Governor’s veto powers, the effective date of this bill is July 1, 2024, except as otherwise 
provided.    
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I. SUBSTANTIVE INFORMATION 
 
A. EFFECT OF 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 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. The rate is expected to be 
reduced to 2.0 percent on June 1, 2024 as a result of legislation passed in 2021. See s. 14, ch. 2021-2, as amended by s. 46, ch. 2021-
31, L.O.F. 
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 March 19, 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 March 19, 2024). 
4
 Id.   
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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); 
  
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   
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 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-
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 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 (OIR) 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 items.
10
 
  
                                                
5
 Florida Office of Insurance Regulation, Catastrophe Report, available at: https://floir.com/home/idalia (last visited March 19, 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 March 19, 
2024). 
7
 Florida Office of Insurance Regulation, Catastrophe Report, available at:    
https://floir.com/Office/HurricaneSeason/HurricaneMichaelClaimsData.aspx (last visited March 19, 2024). 
8
 Florida Office of Insurance Regulation, Catastrophe Report, available at: 
https://www.floir.com/Office/HurricaneSeason/HurricaneIrmaClaimsData.aspx (last visited March 19, 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 March 19, 2024). 
10
 Florida Division of Emergency Management, Disaster Supply Kit Checklist, available at: 
https://www.floridadisaster.org/planprepare/hurricane-supply-checklist/ (last visited March 19, 2024).   
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Since 2006, the Legislature has enacted ten sales tax holidays related to disaster preparedness.  
During these holidays, the following items were exempted as indicated: 
 
 
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 holidays, 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; 
                                                
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 March 19, 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   
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 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: 
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; 
                                                
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.   
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 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 
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. 
 Electric scooters weighing less than 75 pounds, that are less than 2 feet wide and are designed 
for a maximum speed of less than 35 miles per hour, selling for $500 or less. 
 
  
                                                
18
 The exemption for fishing supplies does not apply to supplies used for commercial fishing purposes.   
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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: 
 
 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. 
 
Taxation on the Purchase of Certain Motor Vehicles 
 
                                                
19
 Regional Demand Occupations List, available at: https://lmsresources.labormarketinfo.com/library/rdol/rdol_all_2324.xlsx (last visited 
March 19, 2024).   
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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, plus any local 
option sales surtaxes.
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 
 
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
 
 
Affidavit for Non-Resident Purchaser of Boat or Aircraft 
 
Current Situation 
 
Under current law, nonresident purchasers of boats and aircrafts qualify for a sales tax exemption, 
provided that certain application requirements are met.
29
 One of the requirements is that a nonresident 
purchaser of a boat or aircraft must provide DOR an original signed affidavit attesting that he or she 
read the provisions of s. 212.05, F.S. That statute provides for the exemption and includes the process 
to document the purchaser’s qualification for the exemption. The statutory affidavit requirement does 
not require that the purchaser understand the exemption or documentation requirements, or that they 
attest they will comply with the provisions.  
 
                                                
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. 
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
 S. 212.05, F.S.   
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Effect of Proposed Changes 
 
The bill removes the requirement that nonresident purchasers attest to having read statutory provisions 
and replaces it with the requirement that nonresident purchasers complete an affidavit that affirms that 
the nonresident purchaser qualifies for the exemption from sales tax pursuant to s. 212.05(1)(a)2., F.S., 
and attests that the nonresident purchaser will provide the documentation necessary to substantiate the 
qualification for the exemption. 
 
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.
30
   
 
Approved purposes include: 
 Funding transportation systems in a charter county;
31
 
 Financing local government infrastructure projects;
32
 
 Providing additional revenue for specified small counties;
33
 
 Providing medical care for indigent persons;
34
 
 Funding trauma centers;
35
 
 Operating, maintaining, and administering a county public general hospital;
36
 
 Constructing and renovating schools;
37
 
 Providing emergency fire rescue services and facilities; and
38
 
 Funding pension liability shortfalls.
39
 
 
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 portion of 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.
40
 
 
These surtaxes are generally levied through an ordinance enacted by the governing board of the 
county,
41
 and are generally subject to approval by the voters in the county.
42
 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.
43
 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.
44
 
                                                
30
 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. 
31
 S. 212.055(1), F.S. 
32
 S. 212.055(2), F.S. 
33
 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. 
34
 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). 
35
 S. 212.055(4)(b), F.S. 
36
 S. 212.055(5), F.S. 
37
 S. 212.055(6), F.S. 
38
 S. 212.055(8), F.S. 
39
 S. 212.055(9), F.S. 
40
 Discretionary Sales Surtax Information for Calendar Year 2024, Form DR-15DSS, available at 
https://floridarevenue.com/Forms_library/current/dr15dss.pdf (last visited March 19, 2024). 
41
 S. 212.054(6), F.S. 
42
 Ss. 212.055(1), (2), (6), (7), (8), and (9), F.S. 
43
 S. 212.055(3)(a), F.S. 
44
 Ss. 212.055(4) and (5), F.S.   
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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.
45
 
 
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
46
 
persons, as well as Level I trauma center services.
47
  This tax is imposed by ordinance approved by an 
extraordinary vote of the governing body or approved by referendum.
48
 
 
Effect of Proposed Changes 
 
The bill removes current statutory language excluding counties consolidated with one or more 
municipalities
49
 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. 
 
  
                                                
45
 S. 212.055(1)(a), F.S. 
46
 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.” S. 212.055(4)(a)4.b., F.S. 
47
 S. 212.055(4)(a)3., F.S. 
48
 S. 212.055(4)(a)1., F.S. 
49
 Currently this is only Duval County.   
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Unconstitutional Discretionary Sales Surtaxes 
 
Current Situation 
 
There is no express mechanism in statute that provides a remedy for a discretionary sales surtax that 
has been collected but has later been 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,
50
 February 2019,
51
 and March 2019,
52
 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.
53
 
 
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.”
54
 The bond validation and declaratory judgment entered by the 
lower court were reversed.
55
 The surtax was no longer collected beginning March 16, 2021.
56
 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 DOR is 
able to implement the cessation of collection of the surtax after the Florida Supreme Court’s decision 
became final.”
57
 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.”
58
   
 
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.
59
  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 
                                                
50
 Stacy White v. Hillsborough County, Case No. 18-CA-011749 (13th Cir. 2018). 
51
 Hillsborough County, Florida v. State of Florida, Case No. 19-CA-001382 (13th Cir. 2019). 
52
 Robert Emerson v. Hillsborough County, Case No. 19-CA-002483 (13th Cir. 2019). 
53
 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. 
54
 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.). 
55
 Id. 
56
 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 March 19, 2024). 
57
 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. 
58
 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. 
59
 Stacy White v. Hillsborough County, Case No. 18-CA-011749 (13th Cir. 2018); Final Judgment on Supplemental Relief Claim; July 7, 
2022.   
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surtax revenues received by the relevant parties.
60
 An additional transfer of $453,602.83 was made in 
August 2022, comprising interest earned on the balance prior to transfer.
61
 
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.
62
 The Hillsborough County 
suit has had no meaningful action since before the Supreme Court decision in 2021. The Court in 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, in part because the “Legislature … has passed a law resolving how 
these funds will be used…”
63
 
 
During the 2023 Legislative Session, the Legislature considered legislation that would have provided 
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.
64
 
 
On August 4, 2023, the plaintiffs in the Leon County suit filed an amended class action complaint that 
named the Florida Legislature, the Senate President and the Speaker of the House of Representatives 
as defendants in the litigation.
65
 On January 5, 2024, the Legislature, the Speaker of the House of 
Representatives, and the President of the Senate collectively filed a motion to dismiss the plaintiffs’ 
amended class action complaint.
66
 
 
Effect of Proposed Changes  
 
The bill amends s. 212.054, F.S., and specifies how discretionary sales surtax moneys are disposed of 
when there is a final adjudication finding that the discretionary sales surtax was enacted, levied, 
collected, or is otherwise contrary to the Constitution of the United States or the State Constitution. 
 
The bill provides that if a discretionary sales surtax has been collected, but not expended, any county, 
municipality, school board, or other entity that received funds from such surtax must transfer the surtax 
proceeds, along with any interest earned upon such proceeds, to DOR within 60 days from the date of 
the final adjudication. DOR must deposit all amounts received in a separate account in the 
Discretionary Sales Surtax Clearing Trust Fund for that county for disposition as follows: 
 
 If there is no valid discretionary sales surtax being levied within the same county for which a 
discretionary sales surtax was found to be invalid, one hundred percent of such funds must be 
held in reserve for appropriation in the General Appropriations Act that takes effect on the July 1 
immediately following the transfer of such funds to DOR. 
 
 If there is a valid discretionary sales surtax being levied within the same county for which a 
discretionary sales surtax was found to be invalid: 
o Seventy-five percent of such funds must be held in reserve for appropriation in the 
General Appropriations Act that takes effect on the July 1 preceding a suspension of the 
discretionary sales surtax.  
                                                
60
 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. 
61
 Stacy White v. Hillsborough County, Case No. 18-CA-011749 (13th Cir. 2018); Clerk’s Notice of Additional Transfer to Florida 
Department of Revenue. 
62
 Robert Emerson vs. Florida Department of Revenue and Hillsborough County (2021 CA 000487, 2nd Cir. 2021). 
63
 Robert Emerson vs. Florida Department of Revenue and Hillsborough County (2021 CA 000487, 2nd Cir. 2021); Hearing Transcript 
filed January 26, 2023. 
64
 HB 7063 (2023), as passed the House on April 27, 2024. 
65
 Robert Emerson vs. Florida Department of Revenue and Hillsborough County (2021 CA 000487, 2nd Cir. 2021); First Amended 
Class Action Complaint filed August 4, 2023. 
66
 Robert Emerson vs. Florida Department of Revenue and Hillsborough County (2021 CA 000487, 2nd Cir. 2021); The Legsialtive 
Parties’ Motion to Dismiss filed January 5, 2024.   
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o Twenty-five percent of such funds and all interest earned on all funds held in reserve 
must be held in reserve for appropriation in the General Appropriations Act to facilitate 
the temporary suspension of one or more discretionary sales surtaxes. 
 
The bill provides that if there are multiple valid discretionary sales surtaxes being levied within the 
same county for which a discretionary sales surtax was found to be invalid, such surtaxes, other than 
the school capital outlay surtax, must be temporarily suspended beginning October 1 of the calendar 
year following the calendar year DOR receives such surtax proceeds, or January 1, 2025, whichever is 
later. 
 
If there is only one valid discretionary sales surtax being levied within the same county for which a 
discretionary sales surtax was found to be invalid as described in this subsection, such surtax shall be 
temporarily suspended beginning October 1 of the calendar year following the calendar year DOR 
receives such surtax proceeds. 
 
The bill provides that DOR must continue to distribute moneys in the separate account in the 
Discretionary Sales Surtax Clearing Trust Fund for that county to such county, municipality, or school 
board in an amount equal to that which would have been distributed pursuant to all legally levied 
surtaxes in such county but for the temporary suspension of one or all of such surtaxes. 
 
A county, municipality, or school board that receives moneys from DOR must use the funds consistent 
with the use for which the tax that was temporarily suspended was levied. If there are multiple valid 
discretionary sales surtaxes being levied within the same county for which a discretionary sales surtax 
was found to be invalid, the county must apportion the funds among the uses of the temporarily 
suspended discretionary sales surtaxes in proportion to the discretionary sales surtax rates. 
 
The temporary suspension of surtaxes must end on the last day of the month preceding the first month 
DOR estimates that the balance of the separate account within the Discretionary Sales Surtax Clearing 
Trust Fund for that county will be insufficient to fully make the necessary distributions. Any remaining 
undistributed surtax proceeds must be transferred to the General Revenue Fund. 
 
The bill requires DOR to monitor the balance of proceeds transferred to DOR and shall estimate the 
month in which the temporary discretionary sales surtax suspension will end. At least two months prior 
to the expiration of the temporary surtax suspension, DOR must provide notice to affected dealers and 
the public of when the suspension will end. 
 
The bill clarifies that the provisions relating to an unconstitutional sales surtax, its suspension, and how 
the funds are returned to the affected local governments are not subject to existing law that requires 
that a new or altered discretionary sales surtax can only take effect on January 1 and a discretionary 
sales surtax can only terminate on a December 31. 
 
The bill provides that any person who would otherwise be entitled to a refund of a discretionary sales 
surtax that is found to be invalid may file a claim for a refund pursuant to the procedures provided in the 
applicable General Appropriations Act, to the extent such act provides for refunds. The refund claim 
must be filed between July 1 and December 31 of the state fiscal year for such General Appropriations 
Act. 
 
 
 
 
Surtax Application to Boat and Boat Trailer Sales 
 
Current Situation 
   
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The portion of the sales price that exceeds $5,000 on one item of tangible personal property is not 
subject to the discretionary sales surtax.
67
 However, two or more items of tangible personal property 
will be considered a single item for the purposes of the $5,000 threshold if the items are sold to the 
same purchaser at the same time and are sold together under a generally accepted business practice, 
sold in bulk, or the items sold together make a working unit when assembled.
68
 
 
Effect of Proposed Changes 
 
The bill amends s. 212.054(1)(b)1., F.S., to clarify that a boat and a corresponding boat trailer sold to 
the same purchaser at the same time and with both items located on the same invoice, are considered 
a single item for discretionary sales surtax purposes. The bill also amends s. 212.054(3)(a), F.S., to 
clarify that the sale of the boat and boat trailer is deemed to occur in the county where the purchaser 
resides, as shown on the title or registration documents, for discretionary sales surtax purposes. 
 
Local Food and Beverage Tax - Votes Needed in Referendum 
 
Current Situation  
 
In 1967, Florida authorized the municipal resort tax.
69
 The law authorized cities and towns meeting 
certain population requirements located within counties also meeting certain population requirements to 
levy the tax.
70
 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.
71
 
 
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.
72
 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.
73
 
 
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 such city or 
town at a general election.
74
  
 
  
                                                
67
 S. 212.054(2)(b)1., F.S. 
68
 Id. 
69
 Ch. 67-930, L.O.F. 
70
 Ch. 67-930, s. 1, L.O.F. 
71
 Ch. 67-930, s. 1, L.O.F. 
72
 S. 212.0306, F.S. 
73
 S. 212.0306(1), F.S. 
74
 Ch. 2023-157, s. 21, L.O.F.   
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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. 
Insurance Premium Tax 
 
Florida imposes a 1.75 percent tax on most Florida insurance premiums, a 1 percent tax on annuity 
premiums, and a 1.6 percent tax on self-insurers.
75
 In addition, some insurers pay a retaliatory tax to 
the extent the insurer's state of domicile would impose a greater tax burden than Florida imposes.  
 
Insurance premium taxes are paid by insurance companies under ch. 624, F.S., and are remitted to 
DOR. These revenues are distributed to the General Revenue Fund with additional distributions to the 
Insurance Regulatory Trust Fund, the Police & Firefighters Premium Tax Trust Fund, and the 
Emergency Management Preparedness & Assistance Trust Fund. Net collections of insurance 
premium taxes are forecast to be $1.50 billion in Fiscal Year 2024-25 with distributions to General 
Revenue of $1.10 billion.
76
 
 
Current Situation 
 
Residential and Flood Insurance Policies 
 
Insurance policies providing residential coverage are subject to the insurance premium tax. Residential 
coverage includes personal lines residential coverage, such as for homeowner and condominium unit 
owner policies and also includes commercial lines residential coverage, such as for condominium 
association or apartment building policies.
77
 
 
Also subject to the insurance premium tax are insurance policies, contracts, or endorsements providing 
personal or commercial lines coverage for the peril of flood or excess coverage for the peril of flood. 
Section 627.715(1)(b), F.S., defines a flood as “a general and temporary condition of partial or 
complete inundation of two or more acres of normally dry land area or of two or more properties, at 
least one of which is the policyholder’s property, from:  
 overflow of inland or tidal waters; 
 unusual and rapid accumulation or runoff of surface waters from any source;  
 mudflow; or  
 collapse or subsidence of land along the shore of a lake or similar body of water as a result of 
erosion or undermining caused by waves or currents of water exceeding anticipated cyclical 
levels that result in a flood.” 
 
State Fire Marshal Regulatory Assessment  
 
In addition to the insurance premium tax, certain premiums are subject to the State Fire Marshal 
regulatory assessment. The assessment is an annual 1 percent rate on premiums collected by each 
insurer for policies or portions of policies that provide fire insurance. Section 624.515, F.S., defines fire 
insurance as “the insurance of structures or other property at fixed locations against loss or damage to 
such structures or other described properties from the risks of fire and lightning.” The revenue from the 
assessment is used by the State Fire Marshal to maintain offices and necessary supplies, purchase 
essential equipment and other materials, pay salaries and expenses of required personnel, and all 
                                                
75
 Ss. 624.509(1), F.S. and 624.4621(7), F.S. 
76
 General Revenue Consensus Estimating Conference Comparison Report dated January 16, 2024, p. 26, 
http://edr.state.fl.us/Content/conferences/generalrevenue/grpackage.pdf (last visited March 19, 2024). 
77
 S. 627.4025, F.S.    
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other legitimate expenses relating to the discharge of the administrative and regulatory powers and 
duties.
78
 
 
Insurance Premium Tax Credits 
 
Current law allows for credits for payments of several taxes against the insurance premium tax, 
including payments of corporate income taxes
79
 and adjustments for payments of the firefighter
80
 and 
municipal police
81
 trust funds excise taxes.
82
  
 
Current law also provides a credit limitation.
83
 The total of the credit granted for the corporate income 
taxes paid by the insurer and the credit granted to insurers for employee salaries
84
 may not exceed 65 
percent of the insurance premium tax
85
 after deducting firefighter and municipal police trust funds 
excise tax payments and any assessments related to administration of workers’ compensation.
86
 
 
Effect of Proposed Changes 
 
The bill requires insurers to provide a deduction of 1.75 percent of the total premium charged on 
residential property policies and on personal or commercial flood policies. The bill also requires 
insurers to provide a deduction on the total premium charged on residential properties in an amount 
equal to the State Fire Marshal regulatory assessment charged for such policy under s. 624.515, F.S. 
 
These deductions apply only to policies with coverage for a 12-month period and with an effective date 
between October 1, 2024, and September 30, 2025. The deduction amount must appear separately on 
the policy’s declaration page. 
 
The bill creates a tax credit that can be used by an insurer against the insurer’s insurance premium tax 
liability under s. 624.509, F.S. For the taxable years beginning on January 1, 2024, and January 1, 
2025, there is allowed a credit of 100 percent of the amount of the deductions that the insurer provides 
to policyholders pursuant to the provisions of the bill. If the insurer has insufficient tax liability in a given 
taxable year to use the entire credit, any unused credit under this program will be refunded by DOR to 
the insurer out of the General Revenue Fund. In the event an insurer issues a refund to a policyholder 
for a policy premium for which a deduction was provided to the policyholder and the insurer has 
received a corresponding credit or refund for such deduction, the bill requires the insurer to repay the 
state that portion of such refund that equals the deduction provided for under the bill. 
 
The bill requires insurers to quarterly and annually report the number of policies receiving deductions 
and the total amount of deductions provided by the insurer, along with specific information about the 
impact on residential policies and flood policies. 
 
The bill gives DOR the power to investigate and audit insurance companies providing the deductions 
created by the bill. DOR may request technical assistance from OIR with technical audits or 
                                                
78
 S. 624.516, F.S. 
79
 S. 624.509(4), F.S., allows for a limited credit for payments made under ch. 220, F.S. 
80
 S. 175.141, F.S. Additionally, s. 175.101, F.S., allows for a 1.85% excise tax on property insurance premiums if levied by a 
municipality or special fire control district for pension benefits to firefighters.  
81
 S. 185.12, F.S. Additionally, s. 185.08, F.S., allows for a 0.85% excise tax on casualty insurance premiums if levied by a municipality 
for pension benefits to police officers.  
82
 The Firefighter and Municipal Police Trust Funds Excise Tax provides funding for pension plans established for firefighters and police 
officers under Chapters 175 and 185, Florida Statutes. The Department of Revenue collects the tax from insurance companies and 
transfers funds to the Police and Firefighters' Premium Tax Trust Fund at the Division of Retirement. See Department of Management 
Services, Overview, available at 
https://www.dms.myflorida.com/workforce_operations/retirement/local_retirement_plans/municipal_police_and_fire_plans/overview (last 
visited March 19, 2024).  
83
 S. 624.509(6), F.S.  
84
 S. 624.509(5), F.S. 
85
 Due under s. 624.509(1), F.S.  
86
 S. 440.51, F.S.    
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examinations done to verify insurers compliance with the provisions of the bill. The bill also provides 
that in addition to its existing authority, OIR can examine the information reported by an insurer and 
take corrective measures if an insurer is not in compliance. 
 
The bill authorizes DOR and OIR to adopt emergency rules to implement this legislation. 
 
Corporate Income Tax 
 
Florida levies a 5.5 percent tax on the taxable income of corporations and financial institutions doing 
business in Florida.
87
 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.
88
 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.
89
 By doing this, Florida adopts any changes related to determining 
federal taxable income that were made during the previous year. However, the Legislature 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. Congress did not enact any significant changes to the IRC in 2023 that would impact Florida 
as a result of adopting the IRC as amended and in effect on January 1, 2024. 
 
Effect of Proposed Changes 
 
The bill updates the Florida corporate income tax code by adopting the IRC as amended and 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.
90
  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;
91
 
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.
92
 
 
Effect of Proposed Changes 
 
                                                
87
 S. 220.11(2), F.S. 
88
 S. 220.12, F.S. 
89
 Ss. 220.03(1)(n) and (2)(c), F.S. 
90
 Ch. 2016-3, L.O.F. 
91
 The Employment First Florida website is available at https://www.employmentfirstfl.org/ (last visited March 19, 2024). 
92
 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 March 19, 2024).   
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The bill creates s. 220.1992, 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. 
 
Credit for Qualified Railroad Reconstruction or Replacement Expenditures 
 
Current Situation 
 
Freight rail is a primary component of Florida’s transportation network, managing highway congestion 
and assisting with supply chain issues. There are a number of freight railroads operating in Florida, all 
of which fall into three main classifications, based on their annual operating revenue, as follows: 
 Class I: $943,898,958 or more 
 Class II: less than $943,898,958 but in excess of $42,370,575 
 Class III: $42,370,575 or less.
93
  
 
Class I railroads in Florida are CSX Transportation and Norfolk Southern Railway. The Florida East 
Coast Railway is the only Class II railroad in Florida and covers 351 miles.
 
As of November 2023, there 
are about a dozen Class III railroad companies in Florida covering approximately 1,405 miles.
94
 
 
Class II and Class III railroads that invest in maintaining or improving railroad track in Florida may apply 
for a credit against corporate income tax.
95
 Qualified expenditures must be made on the track that is 
owned or leased by the railroad and include expenditures for the maintenance of railroad infrastructure 
or new construction. The credit is equal to 50 percent of such expenditures in Florida in the taxable 
year, and is limited to the total number of miles the railroad owns or leases in Florida on the last day of 
the taxable year in which the expenditures were incurred multiplied by $3,500. 
 
A railroad must submit an application in order to receive a credit. The application must include any 
documentation or information required by DOR to demonstrate eligibility for the credit, including an 
affidavit certifying that all information is true and correct. Supporting documentation must include a 
copy of a specified IRS form or its equivalent.  
 
The railroad must submit the application with its tax return. If the qualifying railroad is not a corporate 
income taxpayer, the railroad must submit the application directly to DOR no later than May 1 of the 
calendar year following the year in which the qualified expenditures were made. 
 
If the credit is not fully used in any one taxable year because of insufficient tax liability on the part of the 
railroad, or because the railroad is not subject to tax under ch. 220, F.S., the unused amount may be 
carried forward for a period not to exceed five taxable years or may be transferred under certain 
circumstances. The credit may be transferred at any time during the 5 taxable years following the 
taxable year in which the credit was originally earned, by written agreement between the railroad and 
the credit transferee. The credit transferee must be a taxpayer subject to corporate income tax that: 
 Transports property using the rail facilities of the qualifying railroad; 
 Furnishes railroad-related property or services to any railroad operating in this state; or  
                                                
93
 Florida Department of Transportation, Florida Rail System Plan – Updated 2023, available at https://www.fdot.gov/rail/plans/railplan 
(last visited March 19, 2024).  
94
 Florida Department of Transportation, Florida Rail System Plan Chapter 2, available at 
https://fdotwww.blob.core.windows.net/sitefinity/docs/default-source/rail/plans/rail/rail-system-plan-2023/rsp-october-
version/fdot_rsp_ch-2_ada-(oct).pdf?sfvrsn=d4351c09_2 (last visited March 19, 2024). 
95
 S. 220.1915, F.S.    
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 Is a railroad. 
 
DOR must issue a letter to the qualifying railroad within 30 days after receipt of the completed 
application indicating the amount of the approved credit available for carryover or transfer. The 
carryover or transferred credit may be used in any of the five subsequent taxable years, providing that 
the corporate income tax liability for that taxable year exceeds the credit for which the qualifying 
railroad or transferee is eligible, after applying other available credits and unused carryovers.
96
 
 
Effect of Proposed Changes 
 
The bill makes the following changes to the application for this credit: 
 Removes the requirement that an application be submitted with a tax return. The bill allows an 
application to be submitted during the taxable year once qualifying expenditures are incurred, 
but no later than May 1 following the year in which the expenditures are made. 
 Specifies that only one application per taxable year may be submitted by each taxpayer. 
 Changes the calculation of the maximum credit allowable to be based on the track miles owned 
or leased on the last day of the prior calendar year, to allow for the credit to be finalized and 
transferable more quickly. 
 Removes the requirement that a railroad provide a copy of a specified IRS form or its equivalent 
with the application, and instead requires the form to be submitted to DOR if and when it is filed 
with the federal government.  
 Specifies that the applicant must provide to DOR supporting documentation that includes any 
relevant information determined by DOR to verify eligibility of qualified expenditures made in this 
state for the credit. The supporting documentation must include, but is not limited to, the number 
of track miles owned or leased in this state by the qualifying railroad, the total amount and 
description of qualified expenditures, and financial records which are necessary to verify the 
accuracy of the information.  
 
The bill allows for the credit to be transferred immediately upon approval by DOR, and/or in each of the 
five following years, but retains the restrictions on which entities the credit may be transferred to. 
 
The bill requires the Department of Transportation (DOT) to provide to DOR by the last business day of 
each January a list of each Class II and Class III railroad in the state, along with the track miles owned 
or leased by each railroad on December 31 of the prior year. If the self-reported number of miles and 
the report from DOT conflict, DOR is to use the DOT report when calculating the maximum credit. 
 
  
                                                
96
 In the order provided by s. 220.02(8), F.S.    
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Credits Available Against Multiple Taxes 
 
Background 
 
Certain credit programs under Florida law can be taken against one of several types of taxes.  These 
programs include the Florida Tax Credit Scholarship Program,
97
 the New Worlds Reading Initiative Tax 
Credit,
98
 and the Strong Families Tax Credit,
99
 for example. These credits can generally be taken 
against any of the following taxes: 
 
Corporate Income Tax 
 
Florida imposes a 5.5 percent tax on the taxable income of certain corporations and financial 
institutions doing business in Florida.
100
 Corporate income tax is remitted to DOR and distributed to 
General Revenue.  
 
Insurance Premium Tax 
 
Florida imposes a 1.75 percent tax on most Florida insurance premiums.
101 
Insurance premium taxes 
are paid by insurance companies under ch. 624, F.S., and are remitted to DOR. These revenues are 
distributed to General Revenue with additional distributions to the Insurance Regulatory Trust Fund, the 
Police & Firefighters Premium Tax Trust Fund, and the Emergency Management Preparedness & 
Assistance Trust Fund.  
 
Severance Taxes on Oil and Gas Production 
 
Oil and gas production severance taxes are imposed on persons who sever oil or gas in Florida for 
sale, transport, storage, profit, or commercial use.
102 
These taxes are remitted to DOR and distributed 
to General Revenue with additional distributions to the Minerals Trust Fund and to the counties where 
production occurred.  
 
Alcoholic Beverage Taxes 
 
Florida imposes excise taxes on malt beverages, wines, and other beverages.
103 
The taxes are due 
from manufacturers, distributors and vendors of malt beverages, and from manufacturers and 
distributors of wine, liquor, and other specified alcoholic beverages. Taxes are remitted to the Division 
of Alcoholic Beverages and Tobacco (Division) in the Department of Business and Professional 
Regulation (DBPR). 
 
The Division is responsible for supervising the conduct, management, and operation of the 
manufacturing, packaging, distribution, and sale of all alcoholic beverages in Florida.
104
 Distributions of 
the excise taxes on alcoholic beverages are made to the General Revenue Fund, the Alcoholic 
Beverage and Tobacco Trust Fund, and Viticulture Trust Fund.  
 
Sales Taxes Paid by Direct Pay Permit Holders 
 
                                                
97
 S. 1002.395, F.S., along with s. 211.0251, s. 212.1831, s. 220.1875, s. 561.1211, and s. 624.51055, F.S. 
98
 S. 1003.485, F.S., along with s. 211.0252, s. 212.1833, s. 220.1876, s. 561.1212, and s. 624.51056, F.S. 
99
 S. 402.62, F.S., along with s. 211.0253, s. 212.1834, s. 220.1877, s. 561.1213, and s. 624.51057, F.S.  
100
 Ss. 220.11(2) and 220.63(2), F.S. 
101
 S. 624.509, F.S. (Different tax rates apply to wet marine and transportation insurance, self-insurance, and annuity premiums).  
102
 Ss. 211.02(1) and 211.025, F.S. 
103
 Ss. 563.05, 564.06, and 565.12, F.S.   
104
 S. 561.02, F.S.   
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Section 212.183, F.S., authorizes DOR to establish a process for the self-accrual of sales taxes due 
under ch. 212, F.S. The process involves DOR granting a direct pay permit to a taxpayer, who then 
pays the taxes directly to DOR.
105
 
 
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.
106
 The organizations are certified by the 
Department of Children and Families (DCF).
107
 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.
108
  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.
109
 The 
application period is not specified in statute, but the application portal administered by DOR generally 
opens at midnight 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.
110
 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.
111
 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.
112
 
 
Effect of Proposed Changes 
 
The bill increases the annual cap for the Strong Families Tax Credit 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 period for the Strong Families tax credit begins at 9 a.m. on 
the first day of the calendar year preceding the fiscal year the credit is being applied for 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 a.m. on July 1, 2024. 
 
                                                
105
 S. 212.183, F.S., and rule 12A-1.0911, F.A.C. Direct pay permit holders include: dealers who annually make purchases in excess of 
$10 million per year in any county; dealers who annually purchase at least $100,000 of tangible personal property, including 
maintenance and repairs for their own use; dealers who purchase promotional materials whose ultimate use is unknown at purchase; 
eligible air carriers, vessels, railroads, and motor vehicles engaged in interstate and foreign commerce; and dealers who lease realty 
from a number of independent property owners.  
106
 Ch. 2021-31, L.O.F. 
107
 See, https://www.myflfamilies.com/about/strong-families-tax-credit (last visited March 19, 2024). 
108
 S. 402.62, F.S., along with ss. 211.0253, 212.1834, 220.1877, 561.1213, and 624.51057, F.S. 
109
 S. 402.62(5)(b), F.S. 
110
 S. 402.62(5)(b)1., F.S. 
111
 Ch. 2023-157, s. 38, L.O.F.; S. 402.62(5)(a), F.S. 
112
 S. 402.62(5)(b)1., F.S.   
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The bill adds to the criteria for an eligible charitable organization the requirement that the eligible 
charitable organization provides direct services for at-risk families that do not have an open 
dependency case. 
 
The bill removes providing “books to the homes of children eligible for a federal free or reduced-price 
meals program or those testing below grade level in kindergarten through grade 5,” from the list of what 
services may be provided by an eligible charitable organization to qualify for the credit. 
 
The bill instructs DCF to not designate a charitable organization as eligible for a contribution if the 
organization has received more than 50 percent of its total annual revenue from a federal, state, or 
local governmental agency. 
 
Child Care Tax Credit 
 
In 1985, the Legislature adopted a deduction from net income for specified “child care facility start-up 
costs,” defined as expenditures for playground equipment, kitchen appliances and cooking equipment, 
and real property used to establish a child care facility located on the premises or within 5 miles of the 
employer’s location, for use exclusively by the employees of the taxpayer.
113
 
 
In 1998, and effective for 1999 and thereafter, the Legislature replaced the deduction for child care 
facility start-up costs with a credit against corporate income tax or insurance premium tax for employers 
that opened or operated a child care facility for its employees, or which made child care payments 
directly to a child care facility on behalf of employees.
114
 The credit, codified in ss. 220.19 and 
624.5107, F.S., was for 50 percent of the startup costs, along with $50 per month per child for 
employer-provided child care, or 50 percent of child care payments made to independent child care 
facilities.
115
 The total benefit per corporation was limited to $50,000 per year, and the total credits 
statewide were capped at $2 million each year.
116
 Any credit unused in one year due to insufficient 
liability could be carried forward and used in any of the following five years.
117
 
 
If a facility for which a taxpayer received a credit for startup costs ceased operation within the first five 
years, a pro rata share of the credit was required to be repaid.
118
 Eligible child care facilities had to fall 
within the statutory definition found in s. 402.302, F.S., and had to be licensed in accordance with s. 
402.305, F.S., or had to be a facility providing daily care to children who were mildly ill.
119
 The child care 
services must have been available to all employees, or allocated on a first-come, first-served basis.
120
  
 
DOR was authorized to adopt rules for the credit program, and was required to approve or disapprove 
applications for the program in writing.
121
 All approvals required verification by DCF or the local 
licensing agency that the facility qualified for the credit program.
122
 
 
                                                
113
 Ch. 85-118, L.O.F. 
114
 Ch. 98-293, L.O.F. 
115
 Ss. 220.19(2)(a) and 624.5107(2)(a), F.S. (1999). 
116
 Ss. 220.19(2)(b)-(c) and 624.5107(2)(b)-(c), F.S. (1999). 
117
 Ss. 220.19(2)(e) and 624.5107(2)(e), F.S. (1999). 
118
 Ss. 220.19(2)(f) and 624.5107(2)(f), F.S. (1999). 
119
 Ss. 220.19(3)(a) and 624.5107(3)(a), F.S. (1999). 
120
 Ss. 220.19(3)(b) and 624.5107(3)(b), F.S. (1999). 
121
 Ss. 220.19(5) and 624.5107(5), F.S. (1999). 
122
 Ss. 220.19(5)(c) and 624.5107(5)(c), F.S. (1999).   
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The program expired June 30, 2008,
 123
 other than the section related to carryover of unused tax credits 
and the section requiring pro rata repayment if a facility ceased operations within five years, which 
remain in statute.
124
 
 
Current Situation 
 
There is no current tax incentive in Florida law for the provision of childcare services, directly or 
indirectly, by an employer on behalf of its employee. 
 
Effect of Proposed Changes 
 
The bill creates s. 402.261, F.S., creating a child care tax credit for: 
 50 percent of the startup costs of an eligible child care facility; 
 Operating an eligible child care facility for the taxpayer’s employees; or  
 Making payments to an eligible child care facility on behalf of an employee. 
  
A credit may be taken against tax liability due under the following taxes: 
 Corporate income tax; 
 Insurance premium tax; 
 Severance taxes on oil and gas production; 
 Alcoholic beverage tax on beer, wine, and spirits; or 
 Self-accrued sales tax liability of direct pay permit holders. 
 
A taxpayer who operates an eligible child care facility may receive a credit of 50 percent of the startup 
costs of the facility for the taxable year in which the facility begins operating. The maximum amount of 
credit that may be granted is based on the number of employees as follows: 
 One to nineteen employees, the maximum credit is $1 million. 
 Twenty to two hundred fifty employees, the maximum credit is $500,000. 
 Two hundred fifty-one or more employees, the maximum credit is $250,000. 
 
A taxpayer who operates an eligible child care facility for the taxpayer’s employees may receive a credit 
of $300 per month for each eligible child enrolled in the facility. The maximum amount of credit that may 
be granted is based on the number of employees as follows: 
 One to nineteen employees, the maximum credit is $50,000. 
 Twenty to two hundred fifty employees, the maximum credit is $500,000. 
 Two hundred fifty-one or more employees, the maximum credit is $1 million. 
 
A taxpayer who makes payment to an eligible child care facility in the name and for the benefit of an 
employee of the taxpayer is allowed a credit of 100 percent of the payment up to $3,600 per child. The 
maximum amount of credit that may be granted is based on the number of employees as follows: 
 One to nineteen employees, the maximum credit is $50,000. 
 Twenty to two hundred fifty employees, the maximum credit is $500,000. 
 Two hundred fifty-one or more employees, the maximum credit is $1 million. 
 
The tax credit is available for Fiscal Years 2024-25, 2025-26, and 2026-27. The maximum amount of 
tax credits that may be approved is $5 million for each of these fiscal years. 
 
                                                
123
 Ss. 220.19(6) and 624.5107(6), F.S. (1999). 
124
 Ss. 220.19 and 624.5107, F.S.   
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The bill allows taxpayers to apply for the tax credits beginning October 1, 2024. It outlines the 
requirements of the application process to be developed by DOR, priority of applications, timelines for 
review of applications with notices of approval or denial, and it provides DOR with rulemaking authority.  
 
The bill creates s. 211.0254, F.S., to allow a child care tax credit granted under s. 402.261, F.S., to be 
taken against any tax due for oil and gas production under ss. 211.02 and 211.025, F.S. Together with 
a credit to scholarship funding organizations, the New Worlds Reading Initiative, and other charitable 
organizations, the maximum credit which may be taken is limited to 50 percent of the tax due on the 
return for which the credits are taken. In addition, the provision establishes the priority in which this 
credit may be taken. 
 
The bill creates s. 212.1835, F.S., to allow a child care tax credit granted under s. 402.261, F.S., to be 
taken against any tax due from a direct pay permit holder and provides certain requirements including 
filing and paying taxes electronically. 
 
The bill modifies s. 220.19, F.S., to allow a child care tax credit granted under s. 402.261, F.S., to be 
taken against any tax due from a corporate income tax taxpayer for its taxable years beginning on or 
after January 1, 2025, and provides requirements and limitations regarding those tax credits. The bill 
removes provisions in this section related to the carryforward of unused credits and repayment of child 
care facility start-up credits, as they are instead provided in s. 402.261, F.S., created by the bill. 
 
The bill creates s. 561.1214, F.S., to allow a child care tax credit granted under s. 402.261, F.S, to be 
taken against any excise tax due for beer, liquor, and certain wine products, beginning January 1, 2025. 
The credit allowed may not exceed 90 percent of the tax due on the return.   
 
The bill modifies s. 624.5107, F.S., to allow a child care tax credit granted under s. 402.261, F.S, to be 
taken against any tax due, for its taxable years beginning on or after January 1, 2025, on insurance 
premiums under s. 624.509, F.S. and provides restrictions of the credit. The bill removes provisions in 
this section related to the carryforward of unused credits and repayment of child care facility start-up 
credits, as they are instead provided in s. 402.261, F.S., created by the bill. 
 
The bill modifies s. 624.509, F.S., to include the child care tax credit taken under s. 624.5107, F.S., in 
the list of order in which credits may be taken against the insurance premium tax.  
 
Finally, the bill provides DOR with authority to adopt emergency rules to implement the tax credit 
program. 
 
    
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Ad Valorem Taxation 
 
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 and tangible personal property,
125
 
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.
126
   
 
The property appraiser annually determines the “just value”
127
 of property within the taxing authority and 
then applies relevant exclusions, assessment limitations, and exemptions to determine the property’s 
“taxable value.”
128
 Tax bills are mailed in November of each year, and payment is due by March 31.
129
 
The tax is based on the taxable value of property as of January 1 of each year.
130
 
 
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.
131
 All tangible personal 
property is subject to ad valorem taxation unless expressly exempted.
132
 Household goods and 
personal effects,
133
 items of inventory,
134
 and up to $25,000 of assessed value for each tangible 
personal property tax return
135
 are exempt from ad valorem taxation.  
 
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.
136
 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.
137
 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; 
                                                
125
 Art. VII, s. 1(a), Fla. Const. 
126
 Art. VII, s. 9., Fla. Const. 
127
 Property must be valued at “just value” for purposes of property taxation, unless the Florida Constitution provides otherwise. (Art. 
VII, s. 4, Fla. Const.). 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). 
128
 Ss. 192.001(2) and (16), F.S. 
129
 Ss. 197.322 and 197.333, F.S. 
130
 S. 192.042, F.S. 
131
 S. 192.001(11)(d), F.S. 
132
 S. 196.001(1), F.S. 
133
 S. 196.181, F.S. 
134
 S. 196.185, F.S. 
135
 S. 196.183, F.S. 
136
 S. 193.624(2), F.S. 
137
 S. 193.624(3), F.S.; However, s. 193.624(3), F.S., does not allow a limitation 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. In addition, pursuant to s. 7, ch. 2017-118, L.O.F., the benefit for nonresidential property is scheduled to sunset 
December 31, 2037, at which time only the residential provision will remain.   
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 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.
138
 
 
Partial Exemption of Tangible Personal Property 
 
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.
139
  Property owners who lease, lend, or 
rent property must also file.  Each tangible personal property tax return is eligible for an exemption from 
ad valorem taxation of up to $25,000 of assessed value.
140
 
 
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
141
: 
 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
142
 that has been upgraded or refined for use in place of fossil 
natural gas. 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.” 
 
Sources of biogas that are later refined to produce RNG include solid waste landfills, water resource 
recovery facilities, livestock farms, and facilities that process food waste.
143
 In order to complete the 
process of converting biogas into RNG, facilities capture the biogas, “clean” it to pipeline standards, 
                                                
138
 S. 193.624(1), F.S. 
139
 S. 193.062, F.S.; .; see also Department of Revenue, Tangible Personal Property, available at 
https://floridarevenue.com/property/Pages/Taxpayers_TangiblePersonalProperty.aspx (last visited March 19, 2024). 
140
 Art. VII, s. 3., Fla. Const. 
141
 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. This exemption is scheduled to sunset on December 31, 2037, pursuant to s. 196.182(4), F.S. 
142
 S. 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.” 
143
 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 March 19, 2024).   
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and then inject it into the pipeline for customer use.
144
 At least three facilities in Florida are converting 
biogas into RNG,
145
 with more in development.
146
 
 
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, collection, 
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, and first apply to the 2025 property tax 
roll. 
 
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.
147
 All tangible personal property is subject to ad valorem taxation unless 
expressly exempted.
148
 Household goods and personal effects,
149
 items of inventory,
150
 and up to 
$25,000 of assessed value for each tangible personal property tax return
151
 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.
152
 
 
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.   
                                                
144
 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 March 19, 2024). 
145
 Id. at slide 10, 12-16. 
146
 Nasdaq, Chesapeake Utilities Corporation to Develop its First RNG Facility in Florida (Feb. 21, 2023), available at 
https://www.nasdaq.com/press-release/chesapeake-utilities-corporation-to-develop-its-first-rng-facility-in-florida-2023-02 (last visited 
March 19, 2024) (Chesapeake Utilities Corporation is installing a dairy manure renewable natural gas facility in Madison County, 
Florida). 
147
 S. 192.001(11)(d), F.S. 
148
 S. 196.001(1), F.S. 
149
 S. 196.181, F.S. 
150
 S. 196.185, F.S. 
151
 S. 196.183, F.S. 
152
 S. 193.062, F.S.; see also Department of Revenue, Tangible Personal Property, available at 
https://floridarevenue.com/property/Pages/Taxpayers_TangiblePersonalProperty.aspx (last visited March 19, 2024).   
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Effect of Proposed Changes 
 
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 deemed 
substantially completed upon the earlier of when all permits or approvals have been received or 
approved, or 1 year after the construction work in progress has been connected with the preexisting, 
taxable, operational system or facility. 
 
This provision applies retroactively, beginning with the 2024 property tax roll. 
 
Homestead Exemptions on Damaged Property 
 
Current Situation 
 
When homestead property is damaged or destroyed by misfortune or calamity and the property is 
uninhabitable on January 1 after the damage or destruction occurs, a property may continue to receive 
a homestead exemption if: 
 The property owner notifies the property appraiser that he or she intends to repair or rebuild the 
property and live in the property as his or her primary residence after the property is repaired or 
rebuilt. 
 The property owner does not claim a homestead exemption on any other property or otherwise 
violate the requirements for the homestead exemption. 
 The property owner begins repairing or rebuilding the homestead property within 3 years after 
January 1 following the damage or destruction.
153
 
 
Under current law, changes, additions, or improvements to homestead property are assessed at just 
value on January 1 after the changes, additions, or improvements are substantially completed. 
 
However, changes, additions, or improvements that replace all or a portion of homestead property 
damaged or destroyed by misfortune or calamity, including ancillary improvements, shall be assessed 
upon substantial completion using the homestead property’s assessed value as of the January 1 
immediately before the date on which the damage or destruction was sustained.
154
 Homestead property 
is eligible for such assessment if: 
 The square footage of the homestead property as changed or improved does not exceed 110 
percent of the square footage of the homestead property before the damage or destruction; or 
 The total square footage of the homestead property as changed or improved does not exceed 
1,500 square feet.
155
 
 
Property changed or improved in excess of these thresholds must be assessed at just value. 
 
The changes, additions, or improvements must be commenced within 3 years after the January 1 
following the damage or destruction of the homestead.
156
 
 
 
Effect of Proposed Changes 
 
The bill extends the time, from 3 years to 5 years, for a homestead owner to start the repair of a 
homestead property damaged by misfortune or calamity, in order for the homestead owner to continue 
to claim the homestead exemption and maintain a pre-damage assessment. 
                                                
153
 S. 196.031(7), F.S. 
154
 S. 193.155(4), F.S. 
155
 S. 193.155(4), F.S. 
156
 S. 193.155(4), F.S.   
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Improper Receipt of Property Tax Exemptions and Assessment Limitations 
 
Current Situation 
 
Under current law, there are various instances where a property owner improperly receiving a property 
assessment limitation can result in liability for the unpaid taxes as well as penalties and interest. 
 
One such instance is with the improper receipt of the homestead assessment limitation under s. 
193.155, F.S. A person improperly receiving a homestead property assessment limitation for any year 
within the prior 10 years is subject to payment of the unpaid taxes, plus a penalty of 50 percent of the 
unpaid taxes for each year and 15 percent interest per year.
157
 Penalty and interest are not imposed on 
a property owner when an assessment limitation is granted by the property appraiser as a result of a 
clerical mistake or an omission.
158
 
 
When an assessment limitation was improperly applied, the person receiving the limitation will receive 
a notice of intent to record a tax lien against any property in the county where the property owned by 
the person is located. The notice must identify the property.
159
 The property appraiser must give the 
property owner 30 days to pay taxes and applicable penalties and interest before the property 
appraiser may file a lien.
160
 
 
Similarly, under s. 196.011, F.S., a property owner who is not required to file an annual application to 
maintain an exemption, but who fails to notify the property appraiser when the exempt status of the 
property changes, is subject to the taxes exempted as a result of such failure plus 15 percent interest 
per annum and a penalty of 50 percent of the taxes exempted for any year within the prior 10 years that 
the owner was not entitled to receive such exemption.
161
 The property appraiser must record a notice of 
tax lien against any property owned by that person or entity in the county, and the property must be 
identified in the notice of tax lien.
162
 
 
The payment of unpaid taxes, a penalty of 50 percent of the unpaid taxes for each year, and 15 percent 
interest per year are also imposed on a person improperly receiving a property assessment limitation 
for any year within the prior 10 years when there is: 
 An improper reduction in assessment for living quarters of parents or grandparents under s. 
193.703, F.S.; 
 An improper receipt of the additional homestead exemption for persons 65 and older under s. 
196.075, F.S.; or 
 An improper receipt of a homestead exemption, under ch. 196, F.S. 
 
Under ss. 193.703, 196.075, and 196.161, F.S., no penalty or interest is charged if the assessment 
limitation was improperly granted as a result of a clerical error or omission made by the property 
appraiser. Under these provisions, the person will receive a notice of intent to record a tax lien against 
any property in the county owned by the person.
163
 The notice must identify the property.
164
 The 
property appraiser must give the property owner 30 days to pay taxes and applicable penalties and 
interest before the property appraiser may file a lien.
165
 
 
Effect of Proposed Changes 
                                                
157
 S. 193.155(10), F.S. 
158
 Id. 
159
 Id. 
160
 Id. 
161
 196.011(9)(a). F.S. 
162
 Id. 
163
 Ss. 193.703(7), 196.075(9), and 196.161(1)(b), F.S. 
164
 Id. 
165
 Id.   
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The bill amends ss. 193.155, 193.703, 196.011, 196.075, and 196.161, F.S., to provide that a property 
owner is not required to pay the unpaid taxes, penalties, or interest when a property tax exemption or 
assessment limitation has been improperly granted due to a clerical mistake or an omission made by 
the property appraiser if the property owner notifies the property appraiser of such mistake or omission. 
If the property owner has not notified the property appraiser of such mistake or omission and the 
property appraiser discovers it, unpaid taxes can be imposed for years within the previous 5 years in 
which the property owner improperly received the exemption or assessment limitation. 
 
Under all of the above provisions, the bill provides that additional information must be given to the 
property owner by the property appraiser when the property owner has been improperly receiving an 
exemption or assessment limitation. The additional information must explain why the owner is not 
entitled to the exemption or assessment limitation, for which years unpaid taxes, penalties, and interest 
are due, and the manner in which unpaid taxes, penalties, and interest have been calculated. The 
requirement that property appraiser give the property owner 30 days to pay taxes and applicable 
penalties and interest before the property appraiser may file a lien is unchanged. 
 
Fiscally Constrained Counties – Property Tax Refund Reimbursement 
 
Current Situation 
 
Fiscally Constrained Counties 
 
Fiscally constrained counties are counties entirely within a rural area of opportunity or where a 1 mill 
levy would raise no more than $5 million in annual tax revenue.
166
 A “rural area of opportunity” is a rural 
community or a region, as designated by the Governor, that has been adversely affected by an 
extraordinary economic event, a severe or chronic distress, or a natural disaster or that presents a 
unique economic development opportunity of regional impact.
167
 
 
Florida’s fiscally constrained counties are Baker, Bradford, Calhoun, Columbia, Desoto, Dixie, Franklin, 
Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee, Hendry, Highlands, Holmes, Jackson, Jefferson, 
Lafayette, Levy, Liberty, Madison, Okeechobee, Putnam, Suwannee, Taylor, Union, Wakulla, and 
Washington.
168
  
 
Refunds for Properties Rendered Inhabitable 
 
During the 2022 Legislative Session, the Legislature created s. 197.319, F.S., to provide for the 
prorated refund of property taxes on residential properties rendered uninhabitable by a catastrophic 
event.
169
 Section 197.319, F.S., defines “catastrophic event” as an event of misfortune or calamity that 
renders one or more residential improvements uninhabitable, the term does not include an event 
caused, directly or indirectly, by the property owner with the intent to damage or destroy the residential 
improvement.
170
 
 
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. To do so, the property owner must file an application for refund with the property 
appraiser.
171
 
 
                                                
166
 S. 218.67(1), F.S. 
167
 S. 288.0656(2)(d), F.S. 
168
  Florida Department of Revenue, Fiscally Constrained Counties, available at: 
https://www.floridarevenue.com/property/Documents/fcc_map.pdf (last visited March 19, 2024). 
169
 Ch. 2022-97, s. 14, L.O.F. 
170
 S. 197.319(1)(a), F.S. 
171
 S. 197.319(2), F.S.   
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If the property owner fails to file the application by the statutory March 1 deadline due to particular 
extenuating circumstances, they may file an application for refund and may file a petition to the value 
adjustment board requesting that the refund be granted.
172
 
 
Hurricane Idalia 
 
On August 30, 2023, Hurricane Idalia made landfall in Florida as a Category 3 Hurricane. Hurricane 
Idalia traveled across North Florida and into Georgia.
173
 Many of the counties affected were fiscally 
constrained counties. Estimated insured losses were over $309 million in 2023 due to Hurricane 
Idalia.
174
 
 
Effect of Proposed Changes 
 
The bill authorizes DOR to issue reimbursements to fiscally constrained counties that were required to 
refund property taxes to taxpayers whose residential property was rendered uninhabitable for 30 days 
or more by a catastrophic event. The bill appropriates $200,000, from which DOR will issue the 
reimbursements. DOR is authorized to adopt emergency rules to implement this section of the bill. 
 
Affordable Housing Property Tax Exemptions 
 
Ad Valorem Tax Exemption for Newly Constructed Affordable Housing 
 
Current Situation 
 
Section 196.1978, F.S. 
 
The Live Local Act, which became law in 2023, established a new ad valorem tax exemption for owners 
of newly constructed multifamily rental developments who use a portion of the development to provide 
affordable housing.
175
 Eligible property includes units in a newly constructed multifamily development 
containing more than 70 units dedicated to housing natural persons or families below certain income 
thresholds.
176
 However, units subject to an agreement with Florida Housing Finance Corporation 
(FHFC) are not eligible for the exemption.
177
 
 
“Newly constructed” is defined as an improvement substantially completed within five years before the 
property owner’s first application for the exemption.
178
 The units must be occupied by such individuals 
or families and rent limited so as to provide affordable housing at either the 80 or 120 percent AMI 
threshold.
179
 Rent for such units may not exceed 90 percent of the fair market value of rent as 
determined by a rental market study.
180
 
 
Qualified property used to provide affordable housing at the 80 to 120 percent AMI threshold receives 
an exemption of 75 percent of the assessed value of the affordable units, while such property providing 
affordable housing up to the 80 percent AMI threshold receives a complete ad valorem tax exemption 
for the affordable units.
181
 
 
                                                
172
 S. 197.319(4), F.S. 
173
 Executive Order Number 23-212, Extension of Executive Order 23-171 - Hurricane Idalia, available at https://www.flgov.com/wp-
content/uploads/2023/10/EO-23-212.pdf (last visited March 19, 2024). 
174
 Florida Office of Insurance Regulation, Catastrophe Report, available at: https://floir.com/home/idalia (last visited March 19, 2024). 
175
 Ch. 2023-17, s. 8, L.O.F., codified as s. 196.1978(3), F.S. 
176
 S. 196.1978(3)(b), F.S. 
177
 S. 196.1978(3)(k), F.S. 
178
 S. 196.1978(3)(a)2., F.S. 
179
 S. 196.1978(3)(b)1., F.S. 
180
 S. 196.1978(3)(b)3., F.S. 
181
 S. 196.1978(3)(d), F.S.   
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To receive this exemption, a property owner must apply by March 1 to the property appraiser, 
accompanied by a certification notice from FHFC.
182
 To receive FHFC certification, a property owner 
must submit a request on a form including the most recent market study, which must have been 
conducted by an independent certified general appraiser in the preceding three years, a list of units for 
which the exemption is sought, the rent amount received for each unit, and a sworn statement 
restricting the property for a period of not less than three years to provide affordable housing.
183
  
 
The certification process is administered within FHFC. FHFC is responsible for publishing the deadline 
for submission, reviewing each request, sending certification notices to both the successful property 
owner and the appropriate property appraiser, and notifying unsuccessful property owners with reasons 
for denial.
184
 
 
Shimberg Center for Housing Studies 
 
The Shimberg Center for Housing Studies was established at the University of Florida in 1988 to 
promote safe, decent and affordable housing and related community development throughout the state 
of Florida.
185
 The Shimberg Center produces an annual housing report, pursuant to s. 420.6075, F.S., 
which details the surplus or deficit of affordable and available rental housing units in various regions in 
Florida.
186
 The report uses the area median income in a specific area in Florida to determine the 
amount of affordable and available housing units exist in that particular area.
187
 
 
Areas of State Concern 
 
The Areas of Critical State Concern Program (Program) was created in the Florida Environmental Land 
and Water Management Act of 1972.
188
 The Program is intended to protect resources and public 
facilities of major statewide significance, within designated geographic areas, from uncontrolled 
development that would cause substantial deterioration of such resources.
189
 An area of critical state 
concern may be designated for: 
 An area containing, or having a significant impact upon, environmental or natural resources of 
regional or statewide importance, the uncontrolled private or public development of which would 
cause substantial deterioration of such resources; 
 An area containing, or having a significant impact upon, historical or archaeological resources, 
sites, or statutorily defined historical or archaeological districts, the private or public 
development of which would cause substantial deterioration or complete loss of such resources, 
sites, or districts; or 
 An area having a significant impact upon, or being significantly impacted by, an existing or 
proposed major public facility or other area of major public investment.
190
 
 
                                                
182
 S. 196.1978(3)(e), F.S. 
183
 S. 196.1978(3)(f), F.S. 
184
 S. 196.1978(3)(g), F.S. 
185
 Shimberg Center for Housing Studies, University of Florida, available at http://shimberg.ufl.edu/ (last visited March 19, 2024). 
186
 Shimberg Center for Housing Studies, 2023 Annual Report, available at  
http://shimberg.ufl.edu/publications/Shimberg_annual_report_Dec_2023.pdf (last visited March 19, 2024). 
187
 Id. 
188
 Ch. 72-317, L.O.F.; Department of Commerce, Areas of Critical State Concern Program, available at 
https://www.floridajobs.org/community-planning-and-development/programs/community-planning-table-of-contents/areas-of-critical-
state-concern (last visited March 19, 2024).  
189
 Id. 
190
 S. 380.05(2), F.S.   
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Areas of critical state concern currently designated in the state include the Big Cypress,
191
 Green 
Swamp,
192
 Florida Keys,
193
 the Brevard Barrier Island,
194
 and Apalachicola Bay
195
 areas of critical state 
concern. 
 
Effect of Proposed Changes 
 
Upon becoming a law, the bill makes the following changes to the Live Local Ad Valorem Tax 
Exemption for Newly Constructed Affordable Housing program found in s. 196.1978, F.S.: 
 Modifies the definition of “newly constructed” to remove the requirement that substantial 
completion be the earlier of either within 5 years before the date of an applicant's first 
submission of a request for a certification notice or an application for an exemption. 
 Requires fewer units in developments located in Key West or the Florida Keys Area of Critical 
State Concern to be set aside for income-limited persons and families (10 instead of 70). 
 Clarifies that Florida Housing Finance Corporation’s duties are ministerial while property 
appraisers maintain the ultimate authority to grant exemptions. 
 Outlines the method for property appraisers to determine values of exempted units in a manner 
that is similar to other exemptions in statute. The bill also clarifies the duties of the property 
appraiser in determining when a property is eligible for the exemption. 
 Clarifies that units used as a transient public lodging establishment as defined in s. 509.013, 
F.S,
196
 are is not eligible for certain affordable housing exemptions. 
 
Effective beginning with the 2025 tax roll, the bill: 
 Allows a taxing authority to elect, upon adoption of an ordinance or resolution approved by a 
two-thirds vote of the governing body, to opt out of the state law that exempts certain affordable 
housing properties, if certain conditions are met. 
 Requires that the taxing authority wishing to opt out must make a finding in the ordinance or 
resolution that the most recently published Shimberg Center for Housing Studies Annual Report 
identifies that a county that is part of the jurisdiction of the taxing authority is within a 
metropolitan statistical area or region where the number of affordable and available units is 
greater than the number of renter households in the metropolitan statistical area or region for 
the category entitled "0-120 percent AMI." 
 Prescribes the effective time period for ordinances, how an ordinance can be renewed, and how 
an ordinance must be advertised. 
 Provides a grandfathering provision for projects that were granted an exemption prior to any 
ordinance that opts-out of the statutory exemption. 
 
 
 
Effective beginning with the 2026 tax roll, the bill: 
 Provides for an affordable housing tax exemption on certain new, low-income housing projects 
for the first 15 years of the project. The property is exempt from ad valorem tax beginning with 
the January 1 assessment immediately succeeding the date the property was placed in service. 
 Requires a multifamily project meet the following conditions to receive the exemption: 
o Be composed of an improvement to land where an improvement did not previously exist 
or the construction of a new improvement where an old improvement was removed, 
which was substantially completed within 2 years before the first submission of an 
application for exemption. 
                                                
191
 S. 380.055, F.S. 
192
 S. 380.0551, F.S. 
193
 S. 380.0552, F.S. 
194
 S. 380.0553, F.S. 
195
 S. 380.0555, F.S. 
196
 “Transient public lodging establishment” means any unit, group of units, dwelling, building, or group of buildings within a single 
complex of buildings which is rented to guests more than three times in a calendar year for periods of less than 30 days or 1 calendar 
month, whichever is less, or which is advertised or held out to the public as a place regularly rented to guests. S. 509.013(4)(a), F.S.   
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o Contain more than 70 units that are used to provide affordable housing to natural 
persons or families meeting the extremely-low-income, very-low-income, or low-income 
limits. 
o Be subject to a land use restriction agreement with the Florida Housing Finance 
Corporation recorded in the official records of the county in which the property is located 
that requires that the property be used for 99 years to provide affordable housing to 
natural persons or families meeting the certain low-income limitations. The agreement 
must include a provision for a penalty for ceasing to provide affordable housing under 
the agreement before the end of the agreement term. 
 Provides how a property owner applies for the affordable housing tax exemption on certain new, 
low-income housing projects and how the application is approved.  
 Provides how a property appraiser determines the value of the portion of property used to 
provide affordable housing for purposes of applying an exemption. 
 Provides a penalty of the taxes exempted by the improper exemption, plus a penalty of 50 
percent of the unpaid taxes for each year and interest at a rate of 15 percent per annum, if the 
above exemption was improperly claimed. 
 
Local Option Affordable Housing Ad Valorem Exemption 
 
Current Situation 
 
The Live Local Act authorizes counties and municipalities to enact a local option ad valorem tax 
exemption for certain property used for providing affordable housing.
197
 
 
Portions of property eligible for the exemption must be utilized to house persons or families meeting the 
extremely-low limit
198
 or with incomes between 30 to 60 percent of AMI, be contained in a multifamily 
project of at least 50 units where at least 20 percent are reserved for affordable housing, and have rent 
set such that it provides affordable housing to people in the target income bracket, or no higher than 90 
percent of the fair market rent value as determined by a rental market study, whichever is less.
199
 
Additionally, the property must not have been cited for code violations on three or more occasions in 
the preceding 24 months and must not have outstanding code violations or related fines.
200
 
 
In adopting this exemption, a local government may choose to offer either or both an exemption for 
extremely-low-income (up to 30 percent AMI) and for incomes between 30 to 60 percent AMI targets. 
The value of the exemption is up to 75 percent of the assessed value of each unit if less than 100 
percent of the multifamily project’s units are used to provide affordable housing, or up to 100 percent of 
the assessed value if all of the project’s units are used to provide affordable housing.
201
 
 
Effect of Proposed Changes 
 
The bill provides that the local option ad valorem exemption applies to 100 percent of the assessed 
value of each residential unit used to provide affordable housing and requires the property appraiser to 
include the proportionate share of residential common areas, including land, to each unit when 
determining the value of the exemption. The bill also makes administrative and technical updates to 
facilitate administration and clarify the role of the property appraiser. 
 
Documentary Stamp Tax 
 
                                                
197
 Ch. 2023-17, s. 9, L.OF., codified as s. 196.1979, F.S. 
198
 S. 420.0004(9), F.S. 
199
 S. 196.1979(1)(a)1.-3., F.S. 
200
 S. 196.1979(1)(a)4., F.S. 
201
 S. 196.1979(1)(b), F.S.   
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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.
202
  
 
The tax on deeds and other documents related to real property is 70 cents per $100,
203
 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.
204
 Documentary stamp taxes levied on 
promissory notes, nonnegotiable notes, and written obligations may not exceed $2,450.
205
 
 
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.
206
 When the homeowner moves or dies, the proceeds from 
the sale of the home are used to pay off the reverse mortgage loan.
207
 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.
208
 
 
The principal limit amount is the maximum amount that a homeowner can borrow under the loan.
209
 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).
210
 HUD requires certain reverse mortgage lenders to state the 
maximum mortgage amount as 150 percent of the maximum claim amount in the mortgage 
documents.
211
 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.
212
 
 
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.
213
 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 
 
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. 
                                                
202
 Florida Department of Revenue, Florida Documentary Stamp Tax, available at 
https://floridarevenue.com/taxes/taxesfees/pages/doc_stamp.aspx (last visited March 19, 2024). 
203
 S. 201.02(1)(a), F.S. 
204
 Ss. 201.07 and 201.08(1)(b), F.S. 
205
 S. 201.08(1)(a), F.S. 
206
 Federal Trade Commission, Reverse Mortgages, available at https://consumer.ftc.gov/articles/reverse-mortgages (last visited March 
19, 2024). 
207
 Id. 
208
 Id. 
209
 Consumer Financial Protection Bureau, Reverse Mortgages Key Terms, available at https://www.consumerfinance.gov/consumer-
tools/reverse-mortgages/answers/key-terms/ (last visited March 19, 2024). 
210
 Id. 
211
 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 March 19, 2024). 
212
 Id. 
213
 Rule 12B-4.052(1)(b), F.A.C.   
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Written Obligations for Alarm Systems 
 
Current Situation 
 
Customers and alarm system contractors may execute promissory notes for the installation of alarm 
systems into real property. Such promissory notes are subject to documentary stamp tax.
214
 
 
Effect of Proposed Changes 
 
The bill amends s. 201.21, F.S., to exempt from documentary stamp tax non-interest-bearing written 
obligations to pay money, or assignments of salaries, wages, or other compensation made, executed, 
delivered, sold, transferred, or assigned in the state, and for each renewal of the same, of $3,500 or 
less, when given by a customer to an alarm system contractor,
215
 in connection with the sale of an 
alarm system.
216
 The bill provides that this exemption expires on June 30, 2027. 
 
Fuel Taxes 
 
Pollutant Tax Registration Fee 
 
Current Situation 
 
Under current law, any person producing in, importing into, or causing to be imported into this state 
taxable pollutants for sale, use, or otherwise and who is not registered or licensed is required to register 
and become licensed.
217
 Such person must register as either a producer or importer of pollutants and is 
subject to all applicable registration and licensing provisions of ch. 206, F.S. Registrations must be 
made prior to the first production or importation of pollutants for businesses created after July 1, 
1986.
218
 Failure to timely register is a misdemeanor of the first degree.
219
 A registration fee of $30 was 
repealed in 2017.
220
 
 
Effect of Proposed Changes 
 
The bill amends s. 206.9931(1), F.S., to remove obsolete language relating to the pollutant tax 
registration fee repealed in 2017. 
 
Natural Gas Fuel Taxes 
 
Current Situation 
 
                                                
214
 S. 201.08, F.S. 
215
 “Alarm system contractor” means a person whose business includes the execution of contracts requiring the ability, experience, 
science, knowledge, and skill to lay out, fabricate, install, maintain, alter, repair, monitor, inspect, replace, or service alarm systems for 
compensation, including, but not limited to, all types of alarm systems for all purposes. This term also means any person, firm, or 
corporation that engages in the business of alarm contracting under an expressed or implied contract; that undertakes, offers to 
undertake, purports to have the capacity to undertake, or submits a bid to engage in the business of alarm contracting; or that by itself 
or by or through others engages in the business of alarm contracting. S. 489.505(2), F.S. 
216
 “Alarm system” means any electrical device, signaling device, or combination of electrical devices used to signal or detect a 
burglary, fire, robbery, or medical emergency. S. 489.505(1), F.S. 
217
 S. 206.9931(1), F.S. 
218
 Id. 
219
 Id. 
220
 S. 206.9931(1), F.S.   
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In 2013, the Legislature established a fuel tax for natural gas when sold as a fuel for a motor vehicle 
and simultaneously repealed the fee imposed on “alternative fuel” vehicles.
221
 
 
At that time, the bill delayed the imposition of the tax until December 31, 2018, and exempted from the 
sales and use tax natural gas and natural gas fuel when placed into the fuel system of a motor 
vehicle.
222
 Thereafter, a person operating as a natural gas fuel retailer was required to pay a tax on all 
natural gas fuel purchases and report monthly to DOR beginning January 1, 2019.
223
 
 
Beginning January 1, 2019, the following taxes were to be imposed on natural gas fuel:  
 An excise tax of 4 cents upon each motor fuel equivalent gallon of natural gas fuel. 
 An additional tax of 1 cent upon each motor fuel equivalent gallon
224
 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, which is designated 
as the “State Comprehensive Enhanced Transportation System (SCETS) Tax,” at a rate 
determined by statute.
225
 
 An additional tax on each motor fuel equivalent gallon of natural gas fuel “for the privilege of 
selling natural gas fuel” at a rate determined by statute.
226
  
In 2018, the Legislature delayed the imposition of the tax and its operative provisions until January 1, 
2024. 
 
In 2023, the Legislature delayed the imposition of the tax and its operative provisions until January 1, 
2026.
227
 
 
Effect of Proposed Changes 
 
The bill amends s. 206.9955, F.S., reducing the scheduled natural gas fuel tax rates for a one-year 
period beginning on January 1, 2026, to half of the rates currently scheduled to take effect on that date. 
Beginning on January 1, 2027, all the tax rates will revert to the scheduled rates currently in statute.  
 
The reduced rates for calendar year 2026 are as follows: 
 The excise tax on each motor fuel equivalent gallon of natural gas fuel will be 2 cents. 
 The additional tax of 1 cent on each motor fuel equivalent gallon of natural gas fuel, which is 
designated as the “ninth-cent fuel tax,” will be 0.5 cents. 
 The 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,” will be 0.5 cents. 
                                                
221
 Ch. 2013-198, L.O.F. Codified in Part V of ch. 206, F.S. 
222
 Id. 
223
 S. 206.9952(8), F.S. (2013). 
224
 “Motor fuel equivalent gallon” is defined in s. 206.9951(1), F.S., to mean the volume of natural gas fuel it takes to equal the energy 
content of one gallon of motor fuel. Section 206.9955, F.S., currently defines the motor fuel equivalent gallon for compressed natural 
gas, liquefied natural gas, and liquefied petroleum gas. 
225
 Each calendar year, DOR shall determine the tax rate applicable to the sale of natural gas fuel for the following 12-month period 
beginning January 1, rounded to the nearest tenth of a cent, 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. S. 206.9955(2)(d), F.S. (2013). 
226
 Each calendar year, DOR shall determine the tax rate applicable to the sale of natural gas fuel, rounded to the nearest tenth of a 
cent, for the following 12- month period beginning January 1. The tax 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. S. 206.9955(2)(e)1., F.S. (2013). 
227
 Ch. 2023-157, L.O.F.   
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 The additional tax on each motor fuel equivalent gallon of natural gas fuel, which is designated 
as the “State Comprehensive Enhanced Transportation System (SCETS) Tax,” will be 2.9 cents 
per gallon, as adjusted by DOR. 
 The additional tax on each motor fuel equivalent gallon of natural gas fuel “for the privilege of 
selling natural gas fuel” will be 4.6 cents per gallon, as adjusted by DOR. 
 
Tax Administration 
 
Extension of Filing Times Related to Certain Emergencies 
 
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 DOR, usually on a monthly basis.
228
 
Dealers are required to file a return and remit the taxes owed to the state by the 20
th
 day of each 
month.
229
 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.
230
 However, the Executive Director of DOR has 
the authority to extend the stipulated due date for tax returns and accompanying tax payments if there 
is a declared state of emergency.
231
 
 
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.
232
 The due dates to file 
corporate income tax returns 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 for 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.
233
 The Executive Director of DOR has the authority to extend the stipulated due date 
for tax returns and accompanying tax payments if there is a declared state of emergency.
234
 In addition, 
DOR can grant an extension or extensions of time for the filing of any return for good cause upon 
request.
235
 
 
Effect of Proposed Changes 
 
The bill requires DOR 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 DOR 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. 
 
Challenges of Final Assessments or Refund Denials 
                                                
228
 S. 212.11 (1), F.S. 
229
 S. 212.11(1)(b), F.S. 
230
 S. 212.12(2)(a), F.S. 
231
 S. 213.055(2)(a), F.S. 
232
 S. 220.22, F.S. 
233
 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. 
234
 S. 213.055(2)(a), F.S. 
235
 S. 220.222(1)(b), F.S.   
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Current Situation 
 
DOR does not have the authority to reopen a final assessment or refund denial following the expiration 
of all taxpayer appeal rights under the law for purposes of adjusting or compromising the liability of a 
taxpayer. 
 
Effect of Proposed Changes 
 
The bill creates s. 213.21(11), F.S., authorizing DOR to reopen a final assessment or refund denial for 
purposes of settling or compromising a liability if the failure to initiate a timely challenge was the result 
of a specified qualifying event which was beyond the control of the taxpayer. The bill requires that a 
request to reopen an assessment or refund denial for a qualifying event occur no later than 180 days 
after the time for filing a contest has expired. The bill also clarifies that any decision by DOR regarding 
a taxpayer’s request to compromise or settle a liability is not a final order subject to review under ch. 
120, F.S. 
 
A qualifying event includes: 
 The death or life-threatening injury or illness of: 
o The taxpayer; 
o An immediate family member of the taxpayer; or 
o An individual with substantial responsibility for the management or control of the 
taxpayer; 
 An act of war or terrorism; or 
 A natural disaster, fire, or other catastrophic loss. 
 
    
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Garnishment Notice 
 
Current Situation 
 
Section 213.67, F.S., provides the statutory framework for DOR’s garnishment authority. This includes 
the authority to issue a levy upon credits, other personal property, or debts belonging to a delinquent 
taxpayer for any taxes, penalties, and interest owed. Under current law, the levy does not include 
additional daily interest accrued after the date of the levy, or the authority to issue notice to levy notices 
by electronic means. 
 
Effect of Proposed Changes 
 
The bill amends s. 213.67, F.S., to authorize DOR to include all additional daily accrued interests, 
costs, and fees authorized by law to be included in garnishment levy. The bill allows DOR to deliver its 
notices of levy by electronic means. 
 
Sales Tax Collection Enforcement Diversion Program  
 
Current Situation 
 
In 2002, DOR, 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.
236
 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).
237
 
 
The tax collection enforcement diversion program is currently operated in state attorney’s offices in the 
following eight Florida circuits:
 238
 
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.
239
 The JP-PAS Program is administered by FACIL and provides participants with 
reimbursement for expenses for PCA services, up to $2,160 a month.
240
  
 
                                                
236
 S. 413.4021, F.S.; see also ch. 2002-286, L.O.F. 
237
 S. 413.4021(1), F.S. 
238
 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 March 19, 2024). 
239
 S. 413.402, F.S. 
240
 Id.   
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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.
241
 In 2021, the Legislature increased the 
amount to 75 percent of the revenue going to FACIL.
242
  
 
The Revenue Estimating Conference (REC) estimated
243
 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.
244
 
 
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 
 
Sales Tax Distributions 
 
The disposition of sales and use taxes, certain communications services taxes, and certain gross 
receipts taxes
245
 is provided for in s. 212.20, F.S.  That statute provides the reallocation of tax revenue 
to a series of trust funds,
246
 distributions to the General Revenue Fund,
247
 and other distributions in 
accordance with other sections of law (e.g., to the Revenue Sharing Trust Funds for Counties and 
Municipalities).
248
 
 
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.
249
  
 
The Legislature required funds be distributed for purposes specified in law, to the following entities: 
 $5 million to the Florida Thoroughbred Breeders’ Association, Inc. 
 $5.5 million to Tampa Bay Downs, Inc.  
 $17 million to Gulfstream Park Racing Association, Inc. 
 
The provision requiring these distributions will be repealed in 2025 unless reviewed and saved from 
repeal by the Legislature.
250
 
 
Effect of Proposed Changes 
 
                                                
241
 S. 413.4021, F.S.  
242
 The remaining 25 percent of the revenue from the tax collection enforcement diversion program is distributed as sales tax collections 
via 212.20, F.S. See Revenue Estimating Conference, Tax Collection Enforcement Diversion Program, available at 
http://edr.state.fl.us/Content/conferences/generalrevenue/taxcollectiondivprog.pdf (last visited March 19, 2024). 
243
 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. 
244
 Revenue Estimating Conference, Tax Collection Enforcement Diversion Program, available at 
http://edr.state.fl.us/Content/conferences/generalrevenue/taxcollectiondivprog.pdf (last visited March 19, 2024). 
245
 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. 
246
 E.g., s. 212.20(6)(a) and (b), F.S. 
247
 E.g., s. 212.20(6)(c)1., F.S. 
248
 E.g., ss. 212.20(6)(c)2., (d)3., 4., and 6., F.S. 
249
 Ch. 2023-157, s. 39, L.O.F. 
250
 S. 212.20(5)(d)6.f., F.S.   
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The bill repeals the sunset of the distribution provision and related sections of law, to provide for a 
permanent, yearly distribution of $27.5 million to the Florida Agricultural Promotional Campaign Trust 
Fund in order to promote horse breeding and racing in the state. 
 
Distribution for Medical Research Facilities 
 
Current Situation 
 
Cancer and other Medical Research 
 
The National Cancer Institute (NCI) Cancer Centers Program supports cancer research by recognizing 
centers that meet certain standards for finding new ways to prevent, diagnose, and treat cancer. There 
are 72 NCI-designated cancers centers across 36 states and the District of Columbia. Florida has four 
NCI-designated cancer centers: the Sylvester Comprehensive Cancer Center, the University of Florida 
Shands Cancer Center, the Mayo Clinic Cancer Center, and the Moffitt Cancer Center.
251
 
 
The Sylvester Comprehensive Cancer Center in Miami is part of the University of Miami Health System 
and the University of Miami Miller School of Medicine. Sylvester has a team of over 2,500 physicians 
and staff and is currently conducting more than 430 cancer-focused clinical trials.
252
 The center has 
multidisciplinary research programs such as cancer epigenetics, cancer control, and tumor biology.
253
   
 
The Mayo Clinic Cancer Center is the only NCI-designated cancer center that has three geographic 
sites. It was one of the first centers to receive NCI designation in 1973. Florida’s Mayo Clinic Cancer 
Center is in Jacksonville and the other two locations are in Arizona and Minnesota. Research covers 
many topics such as cancer immunology and immunotherapy, experimental therapeutics, 
gastrointestinal cancer, and women's cancer.
 254
 
 
Within the University of Florida Shands Cancer Center there is the Brain Tumor Immunotherapy 
Program, which studies and develop several approaches to the immunologic treatment of pediatric and 
adult malignant brain tumors.
255
 Immunotherapy, also called biologic therapy, is a type of cancer 
treatment designed to boost the body’s natural defenses to fight the cancer.
256
 
 
Additionally, at the University of Florida, there is the Norman Fixel Institute for Neurological Diseases.
257
 
The Institute provides multi-disciplinary, patient-centered care and treatment to people living with 
complex neurological disorders and treats diseases such as Parkinson’s disease, multiple sclerosis, 
Alzheimer’s disease, and essential tremor.
258
 
 
Taxes on Alcohol Beverage Sales 
 
Florida imposes excise taxes on beer and malt beverages, wines, and other beverages.
259 
The taxes 
are due from manufacturers, distributors and vendors of beer and malt beverages, and from 
                                                
251
 National Cancer Institute, NCI-Designated Cancer Centers, available at https://www.cancer.gov/research/infrastructure/cancer-
centers (last visited March 19, 2024); National Cancer Institute, Find a Cancer Center, available at 
https://www.cancer.gov/research/infrastructure/cancer-centers/find (last visited March 19, 2024). 
252
 Sylvester Comprehensive Cancer Center, About Sylvester, available at https://umiamihealth.org/en/sylvester-comprehensive-
cancer-center/about-sylvester (last visited March 19, 2024).  
253
 National Cancer Institute, Sylvester Comprehensive Cancer Center, available at 
https://www.cancer.gov/research/infrastructure/cancer-centers/find/sylvester-miami (last visited March 19, 2024).  
254
 National Cancer Institute, Mayo Clinic Cancer Center, available at https://www.cancer.gov/research/infrastructure/cancer-
centers/find/mayoclinic (last visited March 19, 2024).  
255
 University of Florida, UF Brain Tumor Immunotherapy Program, available at https://braintumors.ufhealth.org/science/uf-brain-tumor-
immunotherapy-program/ (last visited March 19, 2024). 
256
 Id. 
257
 University of Florida, Normal Fixel Institute for Neurological Diseases, available at https://fixel.ufhealth.org/ (last visited March 19, 
2024). 
258
 University of Florida, About the Fixel Institute, available at https://fixel.ufhealth.org/about/ (last visited March 19, 2024). 
259
 Ss. 563.05, 564.06, and 565.12, F.S.     
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manufacturers and distributors of wine, liquor, and other specified alcoholic beverages. Taxes are 
remitted to the Division of Alcoholic Beverages and Tobacco (Division) in DBPR. 
 
The Division is responsible for supervising the conduct, management, and operation of the 
manufacturing, packaging, distribution, and sale of all alcoholic beverages in Florida.
260
 Distributions of 
the excise taxes on alcoholic beverages are made to the General Revenue Fund, the Alcoholic 
Beverage and Tobacco Trust Fund, and Viticulture Trust Fund. Collections of alcoholic beverage taxes 
are forecasted to be $297.6 million in Fiscal Year 2024-2025 with distributions to General Revenue of 
$292 million.
261
 
 
Effect of Proposed Changes 
 
The bill provides a monthly distribution from the Alcoholic Beverage and Tobacco Trust Fund to certain 
medical research centers and programs. A total annual distribution of $30 million is allocated as follows: 
 $10 million to the University of Miami Sylvester Comprehensive Cancer Center;  
 $10 million to the Mayo Clinic Comprehensive Cancer Center in Jacksonville; 
 $5 million to the Brain Tumor Immunotherapy Program at the University of Florida Health 
Shands Cancer Center; and 
 $5 million to the Norman Fixel Institute for Neurological Diseases at the University of Florida. 
 
These funds may be used for constructing, furnishing, equipping, financing, operating, and maintaining 
research and clinical and related facilities; and furnishing, equipping, operating, and maintaining other 
properties owned or leased by these medical research centers and programs. Funds may not be used 
to secure bonds or other forms of indebtedness, and cannot be pledged for debt service. 
 
This distribution is repealed June 30, 2054. 
 
Technical Updates 
 
Current Situation 
 
The antiquated term “tax assessor” is used in several places in statute. 
 
Effect of Proposed Changes 
 
The bill makes technical changes to update antiquated language in statute. References to the “tax 
assessor” are updated with the terms “property appraiser” or “tax collector,” as appropriate. 
 
  
                                                
260
 S. 561.02, F.S. 
261
 General Revenue Consensus Estimating Conference Comparison Report dated January 16, 2024, p. 24, 
http://edr.state.fl.us/Content/conferences/generalrevenue/grpackage.pdf (last visited March 19, 2024).   
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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; and a 7-day sales tax holiday for skilled worker tools. The bill also 
extends the sales tax filing and remittance deadlines for certain states of emergency. 
 
The bill also benefits corporate income taxpayers in Florida by creating a corporate income tax credit 
for businesses that hire persons with disabilities; extending filing deadlines when a federal disaster has 
been declared; and updating the railroad expenditure tax credit. 
 
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; clarifies how back taxes are 
charged when certain property assessment limitations are improperly received, and provides for the 
creation of and updates to affordable housing property tax exemptions. 
 
The bill also creates insurance premium deductions on certain residential and flood policy premiums, 
and creates a temporary tax credit for certain employee childcare expenses. 
 
FISCAL COMMENTS:  
 
The total state and local government impact of the bill in Fiscal Year 2024-25 is estimated to be -$439.6 
million (-$86.9 million recurring), of which -$404.2 million (-$81.6 million recurring) is on General 
Revenue, -$4.1 million (-$3.2 million recurring) is on state trust funds, and -$31.3 million (-$2.1 million 
recurring) is on local government (see following table). 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 -$913.8 million in tax reductions in the bill is the sum of -$86.9 million (recurring), -$421.5 million 
(pure nonrecurring in Fiscal Year 2024-25), and -$405.4 million (pure nonrecurring after Fiscal Year 
2024-25).    
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 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: Freedom Sales Tax Holiday	(72.5)       -         (*) -       (19.3)       -        (91.8)       -         
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 Horse Breeding and Racing Promotion -          (27.5)      -           -       -          -        -          (27.5)      
Sales Tax: Distribution to JP-PAS  from Tax Collection Diversion Program(0.7)         (0.7)        -           -       (0.2)         (0.2)       (0.9)         (0.9)        
Ad Valorem: Renewable Energy Source Device Assessment Limitation -          -         -           -       -          (1.3)       -          (1.3)        
Ad Valorem: Construction Work in Progress	-          -         -           -       (2.9)         (2.9)       (2.9)         (2.9)        
Ad Valorem: Extend Homestead rebuild time	-          -         -           -       -          (0.9)       -          (0.9)        
Ad Valorem: Removes back taxes in certain circumstances	-          -         -           -       -          -        -          -         
Ad Valorem: Requires additional information with notices of tax liens -          -         -           -       -          -        -          -         
Ad Valorem: Affordable Housing - Taxing authority "opt out"	-          -         -           -       0/** 0/** 0/** 0/**
Ad Valorem: "Missing Middle" Flexibility	-          -         -           -       (**) (**) (**)(**)
Ad Valorem: Affordable Housing - First 15 Year Exemption	-          -         -           -       -          (26.6)     -          (26.6)      
Corp. Inc. Tax: Adoption of the Internal Revenue Code	-          -         -           -       -          -        -          -         
Corp. Inc. Tax: Persons with Unique Abilities Tax Credit - Three Years (5.0)         -         -           -       -          -        (5.0)         -         
Corp. Inc. Tax: Short line RR Tax Credit Timing	(**) -         -           -       -          -        (**) -         
Insurance Tax: Policy Premium Deductions and Credit	(100.5)     -         -           -       -          -        (100.5)     -         
Insurance Tax: Flood Insurance Deductions and Credit	(7.2)         -         -           -       -          -        (7.2)         -         
Insurance Tax: Fire Marshal Deductions and Credit	(13.1)       -         -           -       -          -        (13.1)       -         
Doc. Stamp Tax: Reverse Mortgages - Limitation	(2.3)         (2.3)        (3.1)          (3.2)      -          -        (5.4)         (5.5)        
Doc Stamp Tax: Alarm Systems - Exemption - Three Years	(0.7)         -         (1.0)          -       -          -        (1.7)         -         
Local Sales Taxes: Allow Duval to Levy Indigent Care Sales Surtax -          -         -           -       -          0/** -          0/**
Local Option Tax: Local Food & Beverage Tax - Voter Clarification -          -         -           -       -          -        -          -         
Beverage Tax: Distribution to Medical Centers	(30.0)       (30.0)      -           -       30.0        30.0      -          -         
Multiple Taxes: Strong Families - Increase Cap	(20.0)       (20.0)      -           -       -          -        (20.0)       (20.0)      
Multiple Taxes: Strong Families - Designation Criterion/Services -          -         -           -       -          -        -          -         
Multiple Taxes: Childcare Tax Credits -  Three Years	(5.0)         -         -           -       -          -        (5.0)         -         
Multiple Taxes: Automatic Extension of Time for Returns	-          -         -           -       -          -        -          -         
Tax Administration: Event Impacting Timely Challenge	(**) (**) (**) (**)(**) (**) (**) (**)
Tax Administration: Garnishment/Levy Bundling	0/** 0/** 0/** 0/**0/** 0/** 0/** 0/**
Tax Administration: Imposition of Surtax Limitation: Boats and Trailers -          -         -           -       (**) (**) (**) (**)
Tax Administration: Boats and airplanes removed from the state	-          -         -           -       -          -        -          -         
Tax Administration: Remove obsolete language - pollutants tax registration-          -         -           -       -          -        -          -         
Misc.: Updates antiquated language- 'property assessor' 	-          -         -           -       -          -        -          -         
DOR Administrative Appropriation	(0.4)         -         -           -       -          -        (0.4)         -         
Property Tax Reimbursement to Fiscally Constrained Counties - Idalia (0.2)         -         -           -       0.2           -        -          -         
FY 2024-25 Total(404.2)    (81.6)     (4.1)         (3.2)      (31.3)      (2.1)       (439.6)    (86.9)     
Non-recurring Impacts After FY 2024-25
Cash	Cash Cash Cash
Insurance Tax: Policy Premium Deductions and Credit	(317.0)     -         -           -       -          -        (317.0)     -         
Insurance Tax: Flood Insurance Deductions and Credit	(22.7)       -         -           -       -          -        (22.7)       -         
Insurance Tax: Fire Marshal Deductions and Credit	(41.3)       -         -           -       -          -        (41.3)       -         
Fuel Tax: Natural Gas Fuel Tax 1-year Rate Reduction	(0.1)         -         (0.4)          -       (0.2)         -        (0.7)         -         
Corp. Inc. Tax: Persons with Unique Abilities Tax Credit - Three Years (10.0)       -         -           -       -          -        (10.0)       -         
Multiple Taxes: Childcare Tax Credits - Three Years	(10.0)       -         -           -       -          -        (10.0)       -         
Doc Stamp Tax: Alarm Systems - Exemption - Three Years	(2.0)         -         (1.7)          -       -          -        (3.7)         -         
Subtotal for Out Years(403.1)     -         (2.1)          -       (0.2)         -        (405.4)     -         
Bill Total(807.3)    (81.6)     (6.2)         (3.2)      (31.5)      (2.1)       (845.0)    (86.9)     
Pure Nonrecurring=(826.9)   
Recurring + Nonrecurring=(913.8)   
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) = $  86.9 million
Pure nonrecurring tax cuts in FY 2024-25=	$421.5 million 
Pure nonrecurring tax cuts after FY 2024-25= $405.4 million
$913.8 million