Florida Tax Relief Proposed

On February 8th, Governor Ron DeSantis unveiled his budget for fiscal year 2023 – 2024 which includes significant tax relief for Florida residents. The governor, along with leaders from the Florida House and Senate, unveiled a tax plan to save Florida residents $2 billion in the coming year with an expected tax savings of $1,000 per family. The budget press release detailed the potential sales tax exemptions that Florida legislators intend to implement. Notably, in response to recent debate on impact of cooking indoors with natural gas, the budget includes a permanent exemption from sales tax on the purchase of gas stoves.

The governor’s proposal includes several sales tax exemptions related to childcare and purchases for children. The tax relief plan includes permanent exemptions on necessities for babies and toddlers such as clothing, cribs, diapers, and strollers. One-year exemptions will be enacted for children’s books, toys, and athletic equipment. The annual back-to-school sales tax exemption events will also be expanded to four weeks in total and occur in the spring and fall.

The tax relief proposal includes one-year and seasonal sales tax exemptions that apply to households without children as well. These sales tax exemptions include purchases of household items (detergents, toilet paper, etc.), medicinal cosmetics (soap, shampoo, deodorant, etc.), and oral hygiene products (toothbrushes, floss, mouthwash, etc.). Pet owners will also benefit under the tax relief as there is a one-year exemption on pet food and a permanent exemption on over-the-counter pet medications.

The largest sales tax exemption in the tax relief offering applies to outdoor recreation and entertainment purchases and is expected to run from Memorial Day to Labor Day. The “Freedom Summer” exemption will apply to purchases of items such as boating, camping, and fishing supplies as well as event tickets and admissions for concerts and sporting events.

Since Florida Republicans hold a trifecta in state government, residents can expect the proposed exemptions to be enacted this spring. Residents and businesses should monitor the Florida Department of Revenue website for details on each of the exemptions once the legislation is enacted. The governor’s press release can be viewed here.

If you have questions on State and Local Tax matters, please contact the HBK SALT Advisory Group at hbksalt@hbkcpa.com.

About the Author(s)
Matt Dodge is a Senior Manager, State and Local Tax, HBK CPAs & Consultants. He has more than 20 years of experience in state and local tax (SALT) with a focus on sales and use tax. He has served clients in various industries, including construction, manufacturing, oil and gas, retail, service providers, and transportation. He can be reached by email at mdodge@hbkcpa.com.
Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.