The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Appropriations
BILL: CS/SB 7074
INTRODUCER: Appropriations Committee and Finance and Tax Committee
SUBJECT: Taxation
DATE: February 29, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
Gross Khan FT Submitted as Comm. Bill/Fav
1. Gross Sadberry AP Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 7074:
 Temporarily exempts from the sales and use tax:
o “Back-to-School” items including certain clothing, school supplies, learning aids and
puzzles, and personal computers from July 29, 2024, through August 11, 2024.
o “Disaster Preparedness” items and supplies necessary for disaster preparation and the
evacuation of pets from June 1, 2024, through June 14, 2024, and from August 24, 2024,
through September 6, 2024.
o Specific admissions, boating and water activity supplies, camping supplies, fishing
supplies, general outdoor supplies, and residential pool supplies from July 1, 2024,
through July 31, 2024.
o Certain tools and safety equipment from September 1, 2024, through September 7, 2024.
 The bill makes the following changes to the ad valorem property tax:
o Extends the time in which a property owner may begin rebuilding homestead property
and continue to maintain homestead property tax benefits from 3 years to 5 years.
o Extends the date in which tangible personal property of an electric utility is deemed
substantially completed.
o Increases the value of the ad valorem tax exemption for disabled ex-servicemembers
from $5,000 to $10,000.
o Relieves homestead property tax taxpayers from owing back taxes under certain
circumstances; requires the Department of Revenue to produce multi-language forms if
requested by a property appraiser; and requires property appraisers to include specific
additional information in a notice of tax lien served upon an owner.
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o Expands the ad valorem tax benefits for renewable energy source devices to include
facilities used to capture and convert biogas to Renewable Natural Gas.
o Includes changes to the administration of the property tax exemptions created in the Live
Local Act; for Monroe County, it reduces the number of units that must be set aside as
affordable; and clarifies what is considered a part of a unit’s value.
o Allows taxing authorities to "opt-out" of providing a property tax exemption to affordable
housing units where the income of the person renting is between 80 and 120 percent
adjusted gross income
 The bill makes the following changes to the corporate income tax:
o Adopts the internal revenue code as it existed on January 1, 2024.
o Creates a tax credit for corporations who employ persons with unique abilities.
o Provides tax credits to taxpayers who operate a child care facility or make contributions
to child care facilities on behalf of employees.
o Allows qualifying railroads to apply for corporate income tax credit after the end of the
applicant’s taxable year, expands who a credit may be transferred to, and makes other
administrative changes.
 The bill makes the following changes to the insurance premiums tax:
o Allows an insurer to take a credit against its insurance premium tax liability for all
discounts extended to policy holders, including flood, residential property, state fire
assessments, and the Florida Insurance Guaranty Association assessments.
 The bill makes the following changes to the documentary stamp tax:
o Exempts the tax imposed on certain notes and obligations, valued no greater than $3,500,
when given to an alarm system contractor.
o Reduces the maximum amount of documentary stamp tax imposed on Home Equity
Conversion Mortgages.
 Other changes made by the bill include:
o Increasing the cap for the Strong Families Tax Credit program from $20 million to $40
million beginning in Fiscal Year 2024-2025.
o Establishing the date in which a taxpayer may submit an application to the Department of
Revenue for an allocation for a Strong Families Tax Credit and provides that the
increased allocation limit for Fiscal Year 2024-2025 may be applied for beginning July 1,
2024.
o Amending the criteria the Department of Children and Families must follow when
designating an eligible charitable organization.
o Increasing the allowance provided to dealers for the collection and remittance of the sales
tax from a maximum of $30 to $45.
o Granting an automatic extension of the due date for a corporation or a retail dealer to file
corporate income tax or sales and use tax returns and tax remittances during a federally
declared disaster or a state of emergency.
o Making permanent the distributions from the sales and use tax which must be used for
certain thoroughbred breeding and racing purposes.
o Changing the minimum vote threshold needed for the approval of a referendum to levy
the Local Option Food and Beverage tax in certain cities or towns.
o Allowing the Indigent Care and Trauma Center Surtax to be levied in a county that is
consolidated with one or more of its municipalities.
o Limiting to 25 percent the amount of tourist development tax revenues collected which
may be used for a convention center.
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o Reduces the tax rates that will be levied on natural gas fuel beginning on January 1, 2026,
by 50 percent for one year.
o Providing for a $15 million annual distribution from the Alcoholic Beverage Tax to the
University of Miami Sylvester Comprehensive Cancer Center; the University of Florida
Health Shands Cancer Center; and the Mayo Clinic Comprehensive Cancer Center in
Jacksonville until 2054.
o It deletes the requirement that a nonresident purchaser of a boat or aircraft who will
remove the vehicle from Florida read the entire statute.
o Provides that the sale of a boat and trailer when purchased together is a single item and
clarifies which county’s surtax must be collected.
o Allows DOR to reopen assessments if the taxpayer failed to respond to certain requests.
o Allows DOR to include in a garnishment notice and levy additional costs and fees, which
are authorized today but may not be included in such notice or levy.
o Removes obsolete language regarding the registration fee for importers of pollutants.
The bill reduces revenues in total by $1,072.6 million, which is the sum of $210.2 million
(recurring), and $862.4 million (pure nonrecurring in Fiscal Year 2024-2025 and reductions
resulting from nonrecurring impacts in future years). See Section V. Fiscal Impact Statement
for additional information.
Except as otherwise provided, the bill takes effect July 1, 2024.
II. Present Situation:
Overview of Florida Sales and Use Tax
Florida levies a 6 percent tax on the sale or rental of most items of tangible personal property,1
admissions,2 transient rentals,3 and a limited number of services, as well as a 4.5 percent tax on
commercial leases.4 Sales tax is added to the price of the taxable good or service and collected
from the purchaser at the time of sale.5
Counties are authorized to impose local discretionary sales surtaxes in addition to the state sales
tax.6 A surtax applies to “all transactions … subject to the state tax … on sales, use, services,
rentals, admissions, and other transactions ….”7 The discretionary sales surtax rates currently
levied vary by county in a range of 0.5 to 1.5 percent.8
1
Section 212.05(1)(a)1.a., F.S.
2
Section 212.04(1)(b), F.S.
3
Section 212.03(1)(a), F.S.
4
Section 212.031, F.S. The 4.5 percent rate is required to be reduced to 2 percent beginning the second month after the
Department of Revenue is notified by the Office of Economic and Demographic Research that the Unemployment
Compensation Trust Fund balance exceeds $4,071,519,600. Which is currently estimated to be met in March 2024. See The
Office of Economic and Demographic Research, Florida Legislature, Unemployment Compensation Trust Fund, January
2024, available at http://edr.state.fl.us/Content/conferences/unemployment-compensation-trust-
fund/January2024ForecastSummary.pdf (last visited Feb. 14, 2024).
5
Section 212.07(2), F.S.
6
Section 212.055, F.S.
7
Section 212.054(2)(a), F.S.
8
FLA. DEP’T OF REVENUE, Discretionary Sales Surtax Information for Calendar Year 2024, available at
https://floridarevenue.com/Forms_library/current/dr15dss.pdf (last visited Feb. 14, 2024).
BILL: CS/SB 7074 Page 4
Overview of Florida Property Tax
The ad valorem tax or “property tax” is an annual tax levied by counties, municipalities, school
districts, and some special districts. The tax is based on the taxable value of property as of
January 1 of each year.9 The property appraiser annually determines the “just value”10 of
property within the taxing authority and then applies relevant exclusions, assessment limitations,
and exemptions to determine the property’s “taxable value.”11 Property tax bills are mailed in
November of each year based on the previous January 1 valuation. Taxes are due by March 31 of
the following year, but taxpayers receive a discount if they pay early.12
The Florida Constitution prohibits the state from levying ad valorem taxes13 and limits the
Legislature’s authority to provide for property valuations at less than just value, unless expressly
authorized.14
Overview of Florida Corporate Income Tax
Florida levies a 5.5 percent tax on certain income of corporations and financial institutions doing
business in Florida.15 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.16
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.
Florida provides various tax benefits for certain corporate activities. These tax benefits take the
form of subtractions, which reduce the amount of income that is subject to tax, exemptions,
which prohibit taxation on certain levels of income, and tax credits, which are a dollar-for-dollar
reduction of a corporation’s tax liability.
Overview of Florida Documentary Stamp Tax
Florida levies a documentary stamp tax on certain documents executed, delivered, or recorded in
Florida. The most common examples are documents that transfer an interest in Florida real
9
Both real property and tangible personal property are subject to tax. Section 192.001(12), F.S., defines “real property” as
land, buildings, fixtures, and all other improvements to land. Section 192.001(11)(d), F.S., defines “tangible personal
property” as all goods, chattels, and other articles of value capable of manual possession and whose chief value is intrinsic to
the article itself.
10
Property must be valued at “just value” for purposes of property taxation, unless the Florida Constitution provides
otherwise. FLA. CONST. art VII, s. 4. Just value has been interpreted by the courts to mean the fair market value that a willing
buyer would pay a willing seller for the property in an arm’s-length transaction. See, e.g., Walter v. Schuler, 176 So. 2d 81
(Fla. 1965); Deltona Corp. v. Bailey, 336 So. 2d 1163 (Fla. 1976); S. Bell Tel. & Tel. Co. v. Dade Cnty., 275 So. 2d 4 (Fla.
1973).
11
See ss. 192.001(2) and (16), F.S.
12
Section 197.162, F.S.; see also Fla. Dep’t of Revenue, Tax Collector Calendar, available at
https://floridarevenue.com/property/Documents/tccalendar.pdf (last visited Feb. 14, 2024).
13
FLA. CONST. art. VII, s. 1(a).
14
See FLA. CONST. art. VII, s. 4.
15
Section 220.11(2), F.S.
16
Section 220.12, F.S.
BILL: CS/SB 7074 Page 5
property, such as deeds and mortgages, and written obligations to pay money, such as promissory
notes.17
The tax on deeds and other documents related to real property is 70 cents per $100,18 and the tax
on written obligations to pay money is 35 cents per $100.19 The tax levied on written obligations
to pay money may not exceed $2,450.20
Overview of Insurance Premium Tax
Florida imposes a 1.75 percent tax on most Florida insurance premiums, a one percent tax on
annuity premiums, and a 1.6 percent tax on self-insurers.21 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.
Specific current law discussion related to the provisions of the bill are provided in Section III.
Effects of Proposed Changes.
III. Effect of Proposed Changes:
Section 1 – Tourist Development Tax Project Expenditure Limitation
Present Situation
Counties are authorized to levy five separate taxes on transient rental transactions (tourist
development taxes or TDTs).22 Depending on a county’s eligibility to levy such taxes, the
maximum potential tax rate varies:
 The original TDT may be levied at the rate of 1 or 2 percent.23
 An additional 1 percent tax may be levied by counties who have previously levied the
original TDT at least three years.24
 A high tourism impact tax may be levied at an additional 1 percent.25
 A professional sports franchise facility tax may be levied up to an additional 1 percent.26
 An additional professional sports franchise facility tax no greater than 1 percent may be
imposed by a county that has already levied the professional sports franchise facility tax.27
Each county that levies tourist development taxes is required to have a tourist development
council consisting of county residents who are appointed by the county governing board. The
17
Fla. Dep’t of Revenue, Florida Documentary Stamp Tax, available at
https://floridarevenue.com/taxes/taxesfees/pages/doc_stamp.aspx (last visited Feb. 19, 2024).
18
Section 201.02(1)(a), F.S.
19
Sections 201.07 and 201.08(1)(b), F.S.
20
Section 201.08(1)(a), F.S.
21
Sections 624.509, F.S. and s. 624.4621, F.S.
22
Section 125.0104, F.S. “Transient rental” is consider to be the rental or lease of any accommodation for a term of six
months or less. See s. 125.0104(3)(a)1., F.S.
23
Section 125.0104(3)(c), F.S. Sixty-two of the 67 counties levy this tax. Each levies the maximum rate of 2 percent.
24
Section 125.0104(3)(d), F.S. Fifty-six of the eligible 59 counties levy this tax.
25
Section 125.0104(3)(m), F.S. Ten of the 14 eligible counties levy this tax.
26
Section 125.0104(3)(l), F.S. Forty-six of the 67 counties levy this tax.
27
Section 125.0104(3)(n), F.S. Thirty-six of the eligible 65 counties levy this tax.
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tourist development council makes recommendations to the county governing board for the
effective operation of special projects or for uses of the TDT revenue.28
Additionally, for the original 1 or 2 percent TDT, the tourist development council must submit a
tourist development plan to the governing board of the county. The plan must be submitted
before a referendum to enact or renew the ordinance levying the tax.29 The plan must include:
 The anticipated net tax revenue to be derived by the county for the two years following the
tax levy.
 The tax district in which the enactment or renewal of the ordinance levying and imposing the
TDT is proposed.
 A list of the proposed uses of the tax by specific project or special use and the approximate
cost or expense allocation for each specific project or special use.30
After submission of the plan to the governing board of the county, the governing board must