HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 7071 PCB WMC 22-01 Taxation
SPONSOR(S): Appropriations Committee, Ways & Means Committee, Payne and others
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Ways & Means Committee 16 Y, 0 N Berg Aldridge
1) Appropriations Committee 27 Y, 0 N, As CS Trexler Pridgeon
SUMMARY ANALYSIS
The bill provides for a number of tax reductions and other tax-related modifications designed to directly impact
both families and businesses.
Several provisions related to sales tax are included in the bill:
• A 14-day “back-to-school” tax holiday in July and August 2022 for certain clothing, school supplies,
learning aids and puzzles, and personal computers; a 14-day “disaster preparedness” holiday in May
and June of 2022 for specified disaster preparedness supplies for families and their pets; a seven-day
“Freedom Week” tax holiday in July for specified recreational items and activities; and a seven-day tax
holiday in September for tools and equipment needed in skilled trades.
• A two-year exemption for impact-resistant windows, doors, and garage doors for residential properties;
a one-year exemption for babies and children’s clothing, shoes, and diapers; a one-year exemption for
certain ENERGY STAR certified refrigerators, refrigerator/ freezer combinations, water heaters, and
clothes washers and dryers; and a three-month exemption for children’s books.
• A reduction in the sales tax for new mobile homes from six percent to three percent.
• An exemption from sales tax on admissions to Formula One Grand Prix races and World Cup matches.
• An exemption for machinery and equipment used in the production of green energy.
For property taxes, the bill:
• Provides property tax relief for homestead property rendered uninhabitable for 30 days or more due to
a catastrophic event in 2023 or thereafter, and provides relief from all assessments to owners affected
by the sudden and unforeseen collapse of a residential building in 2021;
• Clarifies the start date for calculating the 15-year waiting period for an affordable housing exemption.
• Increases the value of property exempt from ad valorem taxation for residents who are widows,
widowers, blind, or totally and permanently disabled from $500 to $5,000;
• Modifies the assessment methodology for land used in the production of aquaculture products; and
• Updates the qualifying operations for the deployed servicemember tax exemption.
For corporate income tax, the bill:
• Adopts the Internal Revenue Code in effect on January 1, 2022, to maintain conformity with federal
provisions.
• Adds flexibility in the timing of the New Worlds Reading Initiative and Strong Families Tax Credit
programs, and increases the annual cap of the Strong Families Tax Credit to $10 million.
• Provides an additional $5 million annually for the Community Contribution Tax Credit program.
• Creates a tax credit for investment in short line railroads.
The bill exempts certain loans related to emergencies from documentary stamp taxes.
The Revenue Estimating Conference met on February 18, 2022, to consider the potential revenue impacts of
the bill; however, official estimates are pending for several provisions. Staff estimates the bill will have
significant negative indeterminate impacts on General Revenue (positive indeterminate recurring), state trust
(negative indeterminate recurring) and local government revenues (negative indeterminate recurring) in Fiscal
Year 2022-23. See FISCAL COMMENTS.
This bill may be a county or municipality mandate requiring a two-thirds vote of the membership of the
House. See Section III.A.1 of the analysis.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Sales Tax
Florida’s sales and use tax is a six percent levy on retail sales of a wide array of tangible personal
property, admissions, transient lodgings, and commercial real estate rentals,1 unless expressly
exempted. In addition, Florida authorizes several local option sales taxes that are levied at the county
level on transactions that are subject to the state sales tax. Generally, the sales tax is added to the
price of a taxable good and collected from the purchaser at the time of sale. Sales tax represents the
majority of Florida’s General Revenue (79.0 percent for Fiscal Year 2019-20)2 and is administered by
the Department of Revenue (DOR) under ch. 212, F.S.
Authorized in 1982, the Local Government Half-cent Sales Tax Program generates the largest amount
of revenue for local governments among the state-shared revenue sources currently authorized by the
Legislature.3 It distributes a portion of state sales tax revenue via three separate distributions to eligible
county or municipal governments. Additionally, the program distributes a portion of communications
services tax revenue to eligible local governments. Allocation formulas serve as the basis for these
separate distributions. The program’s primary purpose is to provide relief from ad valorem and utility
taxes in addition to providing counties and municipalities with revenues for local programs. 4
Sales Tax Holidays
Current Situation
Since 1998, the Legislature has enacted more than two dozen short-term, temporary periods
(commonly called “sales tax holidays”) during which specified items were exempted from sales tax.
Back-to-School Sales Tax Holidays--Florida has enacted a “back-to-school” sales tax holiday twenty
times since 1998. The length of the exemption periods has varied from three to ten days. The type and
value of exempt items has also varied.
The following table describes the history of back-to-school sales tax holidays in Florida.
1 Commercial real estate rentals are subject to a 5.5% sales tax pursuant to s. 212.031(1)(c), F.S.
2 Office of Economic and Demographic Research, Florida Tax Handbook 2020, p. 16, available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2020.pdf (last visited February 14, 2022).
3 Office of Economic and Demographic Research, Florida Local Government Financial Information Handbook 2021 , p. 55, available
at http://edr.state.fl.us/Content/local-government/reports/lgfih21.pdf (last visited February 14, 2022).
4 Id.
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 TAX EXEMPTION THRES HOLDS
Dates Length Clothing/ Wallets/ School
Books Computers
Footwear Bags Supplies
August 15-21, 1998 7 days $50 or less N/A N/A N/A N/A
July 31-August 8, 9 days $100 or less $100 or less N/A N/A N/A
1999
July 29-August 6, 9 days $100 or less $100 or less N/A N/A N/A
2000
July 28-August 5, 9 days $50 or less $50 or less N/A N/A $10 or less
2001
July 24-August 1, 9 days $50 or less $50 or less $50 or less N/A $10 or less
2004
July 23-31, 2005 9 days $50 or less $50 or less $50 or less N/A $10 or less
July 22-30, 2006 9 days $50 or less $50 or less $50 or less N/A $10 or less
August 4-13, 2007 10 days $50 or less $50 or less $50 or less N/A $10 or less
August 13-15, 2010 3 days $50 or less $50 or less $50 or less 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 $15 or less
the sales price
August 7-16, 2015 10 days $100 or less $100 or less N/A First $750 of $15 or less
the sales price
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 $15 or less
the sales price
July 31-August 9, 10 days $60 or less $60 or less N/A First $1,000 of $15 or less
2021 the sales price
Hurricanes and Disasters in Florida--The Florida Office of Insurance Regulation estimated insured
losses of over $9.1 billion due to Hurricane Michael in 2018, 5 $20.7 billion due to Hurricane Irma in
2017, 6 $1 billion due to hurricanes Hermine and Matthew in 2016,7 $25 billion due to four hurricanes in
2004, and $10.8 billion due to four hurricanes in 2005. 8 Tropical Storm Fay was estimated to have
resulted in $242 million of damage in 2008.9 The Florida Division of Emergency Management
recommends having a disaster supply kit with items such as a battery operated radio, flashlight,
batteries, and first-aid kit.10
5 Florida Office of Insurance Regulation, Catastrophe Report, available at:
https://floir.com/Office/HurricaneSeason/HurricaneMichaelClaimsData.aspx (last visited February 13, 2022).
6 Florida Office of Insurance Regulation, Catas trophe Report, available at:
https://www.floir.com/Office/ HurricaneSeason/HurricaneIrmaClaimsData.aspx (last visited February 13, 2022).
7 Florida Office of Insurance Regulation, Catastrophe Report, available at:
https://floir.com/Office/HurricaneSeason/HurricaneMatthewClaimsData.aspx (last visited February 13, 2022).
8 Florida Office of Insurance Regulation, Florida Office of Insurance Regulation Hurricane Summary Data , available at:
http://www.floir.com/siteDocuments/HurricaneSu mmary20042005.pdf (last visited February 13, 2022).
9 Florida Office of Insurance Regulation, Florida Office of Insurance Regulation Hurricane Summary Data , available at:
http://www.floir.com/siteDocuments/HurricaneSu mmary2008.pdf (last visited February 13, 2022).
10 Florida Division of Emergency Management, Disaster Supply Kit Checklist, https://www.floridadisaster.org/planprepare/hurricane-
supply-checklist/ (last visited February 13, 2022).
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 Recreation in Florida--According to the Florida Fish and Wildlife Conservation Commission, recreational
fishing, hunting and wildlife-viewing in Florida generate an economic impact of $14.8 billion annually.11
Florida leads all states in economic impacts for its number of anglers and total expenditures. 12 In
addition, more than 29 million visitors used Florida’s state parks and trails for swimming, nature
watching, kayaking, and other outdoor activities in 2019,13 and the Florida Fish and Wildlife
Commission estimates that wildlife viewing alone contributes almost $5 billion to the state’s economy. 14
In addition, admissions to live events is an important part of Florida’s economy. For example, Florida’s
sports industry represents an estimated $57.4 billion per year in economic impact to the state,
representing ten major professional sports franchises in five major sports leagues, as well as significant
additional amateur, semi-professional, and recreational sports programs.15 Live music is a significant
part of Florida’s economy as well – three of the top 100 arenas in the world are located in Florida, and
their gross ticket sales alone for 2020 were estimated to be more than $111 million, not including
related economic impact from hotels, food and beverage, and merchandise sales. 16 The pandemic hit
live music and sporting events particularly hard – representative music companies saw earnings drop
95% in 2020,17 90% of independent music venue owners believed they would go out of business by the
end of 2020 without significant financial intervention by the government, 18 and most sports – if played in
2020 or early 2021 at all – were played in front of limited or no audience.19
Skilled Trades--Under chapter 212, F.S., the retail sale of all tangible personal property is subject to tax
unless an exemption applies. Currently, there is no exemption for tools used by skilled trade workers,
such as carpenters, electricians, plumbers, welders, pipefitters, masons, painters, heating and air
conditioning technicians, and other service technicians.
According to the Florida Department of Economic Opportunity, a number of skilled trade occupations
are in high demand.20 The cost of educational materials, tools, and other items can be a barrier to
education, training, and employment for skilled trade workers.
Proposed Changes
The bill establishes four temporary sales tax holidays in 2022: a back-to-school sales tax holiday in late
July and early August, a disaster preparedness sales tax holiday in late May and early June, a
Freedom Week holiday for recreation and admissions during the week surrounding the Fourth of July,
and a Skilled Trade Workforce Tool holiday for tools used in skilled trades for the week surrounding
Labor Day.
11 Florida Fish and Wildlife Conservation Commission (FWC), Economic Impact of Hunting, Freshwater Fishing, Saltwater Fishing,
Wildlife Viewing, and Recreational Boating, available at: https://myfwc.com/about/overview/economics/ (last visited February 13,
2022).
12 FWC, Value of Freshwater Fishing, available at: https://myfwc.com/conservation/value/freshwater-fishing/ (last visited February
13, 2022).
13 Florida State Parks Foundation, Why Florida State Parks and Trails are Important to Florida’s Economic Health, available at:
https://www.floridastateparksfoundation.org/Impact (last visited February 13, 2022).
14 Supra note 11.
15 Florida Sports Foundation, Florida Sports Fast Facts, available at https://playinflorida.com/wp-
content/uploads/2019/06/01_01_2020-FastFacts-Sports-in-progress-temp-1.pdf (last visited February 13, 2022).
16 Worldwide Ticket Sales from Top One Hundred Arenas, available at
https://www.pollstar.com/Chart/2020/04/ Q1Top100Arenas_822.pdf (last visited February 13, 2022).
17 “The Concert Business vs. COVID-19: The Road to a 2021 Recovery” (February 20, 2021) available at
https://edm.com/industry/concert-business-vs-covid-19 (last visited February 13, 2022).
18 “America’s Independent Music Venues Could Close Soon Due To Coronavirus” (June 9, 2020) available at
https://www.npr.org/sections/coronavirus -live-updates/2020/06/09/873196748/americas -independent-music-venues-could-close-soon-
due-to-coronavirus (last visited February 13, 2022).
19 The Future of Sports: How the Roles of Athletes, Fans and Industry Businesses will Change after COVID-19 (October 2, 2020)
available at https://www.uschamber.com/on-demand/coronavirus-pandemic/the-future-of-sports-how-the-roles-of-athletes-fans-and-
industry-businesses-will-change-after-covid-19 (last visited February 13, 2022).
20 Regional Demand Occupations List, available at: http://www.floridajobs.org/workforce-statistics/publications-and-reports/labor-
market-information-reports/regional-demand-occupations-list (last visited February 13, 2022)
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 Back-to-School Holiday--A 14-day sales tax holiday would be authorized from July 25, 2022, through
August 7, 2022. During the holiday, the following items that cost $100 or less are exempt from the state
sales tax and county discretionary sales surtaxes:
 Clothing (defined as an “article of wearing apparel intended to be worn on or about the human
body,” but excluding watches, watchbands, jewelry, umbrellas, and handkerchiefs);
 Footwear (excluding skis, swim fins, roller blades, and skates);
 Wallets; and
 Bags (including handbags, backpacks, fanny packs, and diaper bags, but excluding briefcases,
suitcases, and other garment bags).