HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 7073 PCB WMC 24-05 Taxation
SPONSOR(S): Appropriations Committee, Ways & Means Committee, McClain
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Ways & Means Committee 16 Y, 6 N Rexford Aldridge
1) Appropriations Committee 25 Y, 4 N, As CS Trexler Pridgeon
SUMMARY ANALYSIS
The bill provides for the following tax-related provisions designed to benefit both families and businesses.
For sales taxes, the bill:
Creates a 14-day “back-to-school” tax holiday, in July and August 2024, for certain clothing, school
supplies, learning aids and puzzles, and personal computers; two 14-day “disaster preparedness”
holidays in June and parts of August and September of 2024 for specified disaster preparedness
supplies for families and their pets; a “Freedom Month” tax holiday for July 2024 for specified
recreational items and activities; and a seven-day “Tool Time” tax holiday in September for tools and
equipment needed in skilled trades;
Decreases the business rent tax rate to 1.25 percent for one year;
Expands the ability for a leasing company to pay tax up front on the purchase of a motor vehicle,
instead of collecting and remitting tax on the subsequent long-term lease or rental of the vehicle;
Requires all new local discretionary sales surtax ordinances to be approved by referendum at least
once every 10 years; and
Allows Duval County to levy an indigent care sales surtax if approved by voters.
For corporate income tax, the bill:
Adopts the Internal Revenue Code in effect on January 1, 2024, to conform with federal provisions; and
Creates a corporate income tax credit for businesses that hire persons with disabilities.
For property taxes, the bill:
Expands the ad valorem tax benefits for renewable energy source devices to include facilities used to
capture and convert biogas to renewable natural gas; and
Clarifies that for tangible personal property constructed by an electric utility, construction work in
progress is not deemed substantially completed unless all permits/approvals required for commercial
operation have been received or approved.
The bill also limits all new tourist development taxes (TDTs) to 6 years, requires existing TDTs to be approved
by voters by July 1, 2029, to continue (with exceptions), allows certain counties designated as an area of
critical state concern to use specified local tax surpluses to provide affordable housing for workers; provides
automatic filing extensions for sales tax dealers and corporate income taxpayers in certain emergencies;
increases the annual cap of the Strong Families Tax Credit Program to $40 million; limits documentary stamp
tax assessments for reverse mortgages; increases the percentage of revenue collected from the Sales Tax
Collection Enforcement Diversion Program that goes to the James Patrick Memorial Work Incentive Personal
Attendant Services and Employment Assistance (JP-PAS) Program; distributes $27.5 million for two additional
fiscal years to promote the breeding and racing of horses in Florida; creates an insurance premium deduction
for certain homestead property owners and creates a corresponding insurance premium tax credit for certain
insurers; and makes technical and clarifying updates.
The total state and local government impact of the bill in Fiscal Year 2024-25 is -$619.6 million (-$31.9 million
recurring). See Fiscal Comments section for details.
The bill is effective July 1, 2024, except as otherwise provided.
FULL ANALYSIS
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Sales Tax
Florida’s sales and use tax is a 6 percent levy on retail sales of a wide array of tangible personal
property, admissions, transient lodgings, and commercial real estate rentals, 1 unless expressly
exempted. In addition, Florida authorizes several local option sales taxes that are levied at the county
level on transactions that are subject to the state sales tax. Generally, the sales tax is added to the
price of a taxable good and collected from the purchaser at the time of sale. Sales tax represents the
majority of Florida’s General Revenue (projected 75.2 percent for Fiscal Year 2023-24)2 and is
administered by the Department of Revenue (DOR) under ch. 212, F.S.
Authorized in 1982, the Local Government Half-Cent Sales Tax Program generates the largest amount
of revenue for local governments among the state-shared revenue sources currently authorized by the
Legislature.3 It distributes a portion of state sales tax revenue via three separate distributions to eligible
county or municipal governments. Additionally, the program distributes a portion of communications
services tax revenue to eligible local governments. Allocation formulas serve as the basis for these
separate distributions. The program’s primary purpose is to provide relief from ad valorem and utility
taxes in addition to providing counties and municipalities with revenues for local programs. 4
Sales Tax Holidays
Since 1998, the Legislature has enacted more than two dozen temporary periods (commonly called
“sales tax holidays”) during which certain household items, household appliances, clothing, footwear,
books, and/or school supply items were exempted from the state sales tax and county discretionary
sales surtaxes.
Back to School Sales Tax Holiday
Current Situation
Florida has enacted a “back-to-school” sales tax holiday twenty-two times since 1998. The length of the
exemption periods has varied from three to fourteen days. The type and value of exempt items has als o
varied. The following table describes the history of back-to-school sales tax holidays in Florida.
1 Commercial real estate rentals are subject to a 4.5 percent sales tax pursuant to s. 212.031(1)(c), F.S.
2 The Office of Economic and Demographic Research, 2023 Florida Tax Handb ook, p. 16, available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2023.pdf (last visited Feb. 10, 2024).
3 Office of Economic and Demographic Research, Florida Local Government Financial Information Handbook 2023, p. 51, available at
http://edr.state.fl.us/Content/local-government/reports/lgfih23.pdf (last visited Feb. 10, 2024).
4 Id.
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TAX EXEMPTION THRESHOLDS
Dates Length Books/
Clothing/ Wallets/ School
Learning Computers
Footwear Bags Supplies
Aids/ Puzzles
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 (Books)
July 23-31, 2005 9 days $50 or less $50 or less $50 or less N/A $10 or less
(Books)
July 22-30, 2006 9 days $50 or less $50 or less $50 or less N/A $10 or less
(Books)
August 4-13, 2007 10 days $50 or less $50 or less $50 or less N/A $10 or less
(Books)
August 13-15, 2010 3 days $50 or less $50 or less $50 or less N/A $10 or less
(Books)
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
July 25-August 7, 14 days $100 or less $100 or less $30 (Learning $1,500 or less $50 or less
2022 Aids/Puzzles)
July 24-August 6, 14 days $100 or less $100 or less $30 (Learning $1,500 or less $50 or less
2023; Jan 1-14, 2024 each Aids/Puzzles)
Effect of Proposed Changes
The bill provides for a sales tax holiday from July 29, 2024, through August 11, 2024. During the
holiday, the following items that cost $100 or less are exempt from the state sales tax and county
discretionary sales surtaxes:
Clothing (defined as an “article of wearing apparel intended to be worn on or about the human
body,” but excluding watches, watchbands, jewelry, umbrellas, and handkerchiefs);
Footwear (excluding skis, swim fins, roller blades, and skates);
Wallets; and
Bags (including handbags, backpacks, fanny packs, and diaper bags, but excluding briefcases,
suitcases, and other garment bags).
The bill also exempts various “school supplies” that cost $50 or less per item during the holiday, and
learning aids and jigsaw puzzles that cost $30 or less per item. “Learning aids” are defined as
“flashcards or other learning cards, matching or other memory games, puzzle books and search-and-
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find books, interactive or electronic books and toys intended to teach reading or math skills, and
stacking or nesting blocks or sets.”
Additionally, the bill exempts personal computers and related accessories with a sales price of $1,500
or less which are purchased for noncommercial home or personal use. This includes tablets, laptops,
monitors, calculators, input devices, and non-recreational software. Cell phones, furniture and devices
or software intended primarily for recreational use are not exempted.
The “back-to-school” sales tax holiday applies at the option of the dealer if less than 5 percent of the
dealer’s gross sales of tangible personal property in the prior calendar year are comprised of items that
are exempt under the holiday. If a qualifying dealer chooses not to participate in the tax holiday, by July
15, 2024, the dealer must notify the Department of Revenue in writing of its election to collect sales tax
during the holiday and must post a copy of that notice in a conspicuous location at its place of
business.
Disaster Preparedness Sales Tax Holiday
Current Situation
The Florida Office of Insurance Regulation estimated insured losses of over $309 million due to
Hurricane Idalia in 2023,5 $19.6 billion due to Hurricanes Ian and Nicole in 2022, 6 $9.1 billion due to
Hurricane Michael in 2018,7 $20.7 billion due to Hurricane Irma in 2017, 8 and $1.3 billion due to
Hurricanes Hermine and Matthew in 2016.9
The Florida Division of Emergency Management recommends having a disaster supply kit with items
such as a battery-operated radio, flashlight, batteries, pet care items, and first-aid kit.10
Since 2006, the Legislature has enacted ten sales tax holidays related to disaster preparedness.
During these holidays, the following items were exempted as indicated:
5 Florida Office of Insurance Regulation, Catastrophe Report, available at: https://floir.com/home/idalia (last visited Feb. 4, 2024).
6 Florida Office of Insurance Regulation, Catastrophe Report, available at:
https://www.floir.com/home/ian ($19.3 billion) and https://www.floir.com/home/hurricane-nicole ($253 million) (last visited Feb. 4, 2024).
7 Florida Office of Insurance Regulation, Catastrophe Report, available at:
https://floir.com/Office/HurricaneSeason/HurricaneMichaelClaimsData.aspx (last visited Feb. 4, 2024).
8 Florida Office of Insurance Regulation, Catastrophe Report, available at:
https://www.floir.com/Office/HurricaneSeason/HurricaneIrmaClaimsData.aspx (last visited Feb. 4, 2024).
9 Florida Office of Insurance Regulation, Catastrophe Report, available at:
https://floir.com/Office/HurricaneSeason/HurricaneMatthewClaimsData.aspx and
https://floir.com/Office/HurricaneSeason/HurricaneHermineClaimsData.aspx (last visited Feb. 4, 2024).
10 Florida Division of Emergency Management, Disaster Supply Kit Checklist, available at:
https://www.floridadisaster.org/planprepare/hurricane-supply-checklist/ (last visited Feb. 4, 2024).
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TAX EXEMPTION THRESHOLDS
Dates Length Fuel Coolers Tie down
Reusable Light Genera-
Contain- Batteries and Ice Radios tools and
Ice Source tors
ers Chests sheeting
May 21-June 12 days $10 or less $20 or $25 or $30 or $30 or $50 or $50 or $1000 or
1, 2006 11 less less less less less less less
June 1-June 12 days $10 or less $20 or $25 or $30 or $30 or $75 or $50 or $1000 or
12, 2007 12 less less less less less less less
May 31-June 9 days $10 or less $20 or $25 or $30 or $30 or $50 or $50 or $750 or
8, 2014 13 less less less less less less less
June 2 – 3 days $10 or less $20 or $25 or $30 or $30 or $50 or $50 or $750 or
June 4, 2017 less less less less less less less
June 1-7, 7 days $10 or less $20 or $25 or $30 or $30 or $50 or $50 or $750 or
2018 less less less less less less less
May 31-June 7 days $10 or less $20 or $25 or $30 or $30 or $50 or $50 or $750 or
6, 2019 less less less less less less less
May 29-June 7 days $10 or less $20 or $25 or $30 or $30 or $50 or $50 or $750 or
4, 2020 less less less less less less less
May 28 – 10 days $20 or less $40 or $50 or $50 or $60 or $50 or $100 or $1000 or
June 6, less less less less less less less
2021 14
May 28 – 14 days $20 or less $40 or