The Florida Senate
(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 7062
INTRODUCER: Appropriations Committee and Finance and Tax Committee
SUBJECT: Taxation
DATE: April 27, 2023 REVISED:
Babin Babin FT Submitted as Committee Bill
1. Babin Sadberry AP Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 7062:
 Permanently exempts the sale of the following products from sales and use tax:
o Machinery and equipment used to produce renewable natural gas.
o Machinery and equipment used to store electrical energy of at least 5 megawatts.
o Baby and toddler products.
o Diapers and incontinence products.
o Oral hygiene products.
o Firearm safety devices.
o Sales of taxable services by small private investigative services.
 Provides a 28-day “back-to-school” sales tax holiday over two separate time periods, from
July 24, 2023, through August 06, 2023, and January 01, 2024, through January 14, 2024, for
certain clothing, school supplies, learning aids and puzzles, and personal computers.
 Provides a 14-day “disaster preparedness” sales tax holiday from May 27, 2023, through
June 09, 2023, for specified disaster preparedness items, supplies necessary for the
evacuation of pets, and common household consumable items.
 Provides a 3-month “Freedom Summer” sales tax holiday from May 29, 2023, through
September 04, 2023, for specified admissions, boating and water activity supplies, camping
supplies, fishing supplies, general outdoor supplies, residential pool supplies, children’s toys,
and children’s athletic equipment.
 Provides a 7-day “Tool Time” sales tax holiday from September 2, 2023, through September
8, 2023, for specified tools and safety equipment.
 Provides a 1-year sales tax exemption on the sale of:
BILL: CS/SB 7062 Page 2
 Specified ENERGY STAR appliances.
 Gas ranges and cooktops.
 Increases the Strong Families Tax Credit limit from $10 million to $20 million.
 Provides an additional $150 million in tax credits for brownfield rehabilitation for use in
Fiscal Years 2023-2024 through 2027-2028.
 Authorizes counties to impose the local food and beverage sales tax in cities that impose the
municipal resort tax if approved by referendum.
 Creates a corporate income tax credit for the installation of graywater systems on residential
 Creates a corporate income and insurance premium tax credit for the rehabilitation of historic
real property in Florida.
 Distributes $27.5 million for 2 fiscal years to the Florida Agricultural Promotion Campaign
Trust Fund, from which it will be further distributed to the Florida Thoroughbred Breeders’
Association and two thoroughbred racing tracks within Florida to be used to promote
thoroughbred breeding and thoroughbred racing in Florida.
 Provides a credit against pari-mutuel taxes and fees for permit holders that conduct
thoroughbred racing.
 Exempts certain portions of Small Business Administration loans from documentary stamp
tax and intangible personal property tax.
 Exempts certain notes by alarm system contractors from documentary stamp tax.
 Permanently increases the sales tax dealer collection allowance from a maximum of $30 per
return to $45 per return.
 Prohibits special assessments on agricultural lands.
 Requires several local taxes, when renewed or increased by referendum, to be placed on the
ballot in a general election held within 48 months before the effective date of the renewed or
increased tax, and prohibits them from being placed on the ballot more than once during that
time period.
 Clarifies that the ad valorem exemption for disabled veterans may be transferred to other
properties at the discretion of the disabled veteran or his or her surviving spouse.
 Expands the ad valorem refund for disabled veterans who purchase a new homestead in
Florida after receiving the exemption on an existing homestead to no longer require the
veteran to have been receiving the exemption on an existing homestead.
 Expands the homestead exemption for surviving spouses of first responders killed in the line
of duty to include surviving spouses of federal law enforcement officers.
 Clarifies that parsonages, burial grounds, and tombs, when owned by a public house of
worship, are used for religious purposes, and thus, are not subject to ad valorem tax.
 Amends the ad valorem exemption for educational property to include property under a 98-
year lease by an educational institution and property leased by an educational institution and
used by it for educational purposes if the property was owned by the educational institution
and received the exemption for at least 10 consecutive years in the past.
 Amends the ad valorem property value and percentage thresholds below which a property
appraiser is not authorized to appeal changes made by the value adjustment board.
 Amends the automatic property tax refund provision for residential property rendered
uninhabitable to not apply when the damage was caused by an event resulting in a federal
disaster area declaration or a state of emergency.
BILL: CS/SB 7062 Page 3
 Freezes local communications services tax rates in place on January 1, 2023, until January 1,
 Increases the number of counties authorized to use up to 10 percent of their tourist
development tax revenues to fund public safety needs caused by increased tourism.
 Delays the imposition of the natural gas fuel tax from January 1, 2024, until January 1, 2026.
 Clarifies that when calculating the penalty for underpayment with regard to corporate income
tax, a taxpayer’s donation to a tax donation program is included as a payment of tax.
The bill reduces revenues in total by $1,142.4 million, which is the sum of $419.7 million
(recurring), and $722.7 million (pure nonrecurring in Fiscal Year 2023-2024 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, 2023.
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 5.5 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 vary by
county in a range of 0.5 to 1.5 percent.8
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 a property as of
January 1 of each year.9 The property appraiser annually determines the “just value”10 of
Section 212.05(1)(a)1.a., F.S.
Section 212.04(1)(b), F.S.
Section 212.03(1)(a), F.S.
Section 212.031, F.S.
Section 212.07(2), F.S.
Section 212.055, F.S.
Section 212.054(2)(a), F.S.
FLA. DEP’T OF REVENUE, Discretionary Sales Surtax Information for Calendar Year 2023, available at (last visited Apr. 15, 2023).
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.
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
BILL: CS/SB 7062 Page 4
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.12 Taxes are due by March 31
of the following year,13 but taxpayers receive a discount if they pay early.14
The Florida Constitution prohibits the state from levying ad valorem taxes15 and limits the
Legislature’s authority to provide for property valuations at less than just value, unless expressly
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.17 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.18
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 ultimately 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 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.19 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.
The bill contains several unrelated issues. Thus, the present situation for each issue included in
the bill is described below in Section III, Effect of Proposed Changes.
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.
See ss. 192.001(2) and (16), F.S.
Section 197.322, F.S.; see also FLA. DEP’T OF REVENUE, Florida Property Tax Calendar, available at (last visited Apr. 15, 2023).
Section 197.162, F.S.
Section 197.162, F.S.; see also FLA. DEP’T OF REVENUE, Tax Collector Calendar, available at (last visited Apr. 15, 2023).
FLA. CONST. art. VII, s. 1(a).
See FLA. CONST. art. VII, s. 4.
Section 220.11(2), F.S.
Section 220.12, F.S.
Section 624.509, F.S., and s. 624.4621, F.S.
BILL: CS/SB 7062 Page 5
III. Effect of Proposed Changes:
Section 1 – Special Assessments on Nonresidential Farm Buildings
Present situation
Agricultural lands are those used primarily for bona fide agricultural purposes such as
horticulture, viticulture, forestry, and farming.20 Property appraisers are required to annually
classify all land as either agricultural or nonagricultural.21 Lands classified as agricultural are
assessed based on current use rather than its highest and best use, often resulting in lower
assessed values.22
Only the area of the land used for agricultural purposes benefits from the agricultural
classification.23 Maintaining a dwelling on part of the lands used for agricultural purposes does
not in itself preclude an agricultural classification.24 When agricultural property contains a
residence under the same ownership, the portion of the property consisting of the residence and
curtilage must be assessed separately.25
Counties are authorized to levy special assessments;26 however, they are prohibited from levying
special assessments for the provision of fire protection services on a nonresidential farm building
with a just value equal to or less than $10,000.27
Proposed change
The bill amends s. 125.0104, F.S., to prohibit special assessments on lands classified as
Sections 2-7 – Local Tax Referenda; Tourist Development Tax Revenue Uses
Present situation
Counties and municipalities have authority to levy a variety of optional taxes conditioned upon
approval of a majority of electors voting in a referendum.
Presently, the referenda approving the local taxes amended in the bill are held at general
elections.28 A general election is an election held on the first Tuesday after the first Monday in
November in the even-numbered years, for the purpose of filling national, state, county, and
district offices and for voting on constitutional amendments not otherwise provided for by law.29
Current law is silent on the timing of referenda to reauthorize existing taxes, and permits
referenda to occur at any general election. The taxes addressed in the bill are described below.
Section 193.461, F.S.
Section 193.461(1), F.S.
FLA. CONST. art. VII, s. 4(a).
Section 193.461(3)(b), F.S.
Section 193.461(3)(c), F.S.
Section 193.461(3)(d), F.S.
Section 125.01(1)(r), F.S.
Section 125.01(1)(r), F.S.
Sections 125.0104(6)(a), 125.0108(5), 125.901(1), 200.091, 212.055(10), 336.021(4)(a)2., and 336.025(1)(b), F.S.
Section 97.021(17), F.S.
BILL: CS/SB 7062 Page 6
Tourist Development Tax – Counties may levy five separate taxes – known as “tourist
development taxes” or “TDTs” – on transient rental transactions.30 The maximum tax rate varies
from a minimum of 3 percent to a maximum of 6 percent.31 The “base” TDT may be levied at the
rate of 1 or 2 percent.32 The levy of the base 1 or 2 percent TDT must be approved by a
countywide referendum,33 and additional TDT levies must be authorized by a vote of the
county’s governing authority or by voter approval of a countywide referendum.34
The uses of TDT revenue are specified in statute and generally relate directly to tourism.35 One
specified use allows counties bordering the Gulf of Mexico or the Atlantic Ocean to use up to 10
percent of the tax to reimburse expenses incurred in providing public safety services needed to
address impacts related to increased tourism and visitors to an area. The county cannot impose
the tourist impact tax, and it must:
1. Generate a minimum of $10 million in annual proceeds from the TDT;
2. Have at least three municipalities; and
3. Have an estimated population of less than 225,000, excluding inmate population.36
Okaloosa, Bay, and Walton counties currently meet the requirements necessary to use funds in
the manner described above. Okaloosa’s April 1, 2022, population less inmates was 214,335.
This is 31,472 more than Bay and 136,041 more than Walton.37
Tourist Impact Tax – Counties containing a designated area of critical state concern38 are
authorized to create land authorities by ordinance39 to “equitably deal with the challenges of
implementing comprehensive land use plans developed pursuant to the area of critical state
concern program, which challenges are often complicated by the environmental sensitivity of
such areas.”40 Any county creating a land authority may levy a tourist impact tax.41 The tax must
be approved by referendum