Florida Tax Relief Proposed

Date February 16, 2023
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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.

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Florida Property Tax Refund – Hurricane Ian and Hurricane Nicole

Date January 19, 2023
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The Florida Department of Revenue recently issued property tax guidance to homeowners impacted by major hurricanes that affected the state in 2022. On January 17, 2023, the Department issued PTO 23-01, Refund of Taxes for Residential Improvement Rendered Uninhabitable by Hurricane Ian or Hurricane Nicole – Revised Form. The bulletin provides taxpayers with information on the property tax relief legislation enacted in December 2022.

The property tax law grants relief to taxpayers if their residential properties were rendered uninhabitable for 30 days or more due to Hurricane Ian or Hurricane Nicole. The property tax relief applies retroactively to January 1, 2022, and expires on January 1, 2024. If applicable, property owners may request a refund of property taxes paid for in 2022 relative to the time their residential property was uninhabitable due to a hurricane. The law defines “uninhabitable” as “the loss of use and occupancy of a residential improvement for the purpose for which it was constructed resulting from damage to or destruction of, or from a condition that compromises the structural integrity of, the residential improvement which was caused by Hurricane Ian or Hurricane Nicole during the 2022 calendar year.”

The Department has adopted Form DR-5001, N. 01/23, to facilitate the application for refund of property taxes due to the property being uninhabitable in 2022. The application must be filed by April 3, 2023. If the application is not filed by the deadline, then the property owner waives their claim for refund under the property tax law. Supporting documentation must accompany the application and may include insurance information, statements from contractors, building permit applications and similar documents detailing the damage to the property. The application must be signed by under penalties of perjury, with the property owner attesting that the facts and information provided on the application are true.

The county property appraiser must notify the applicant of their determination no later than June 1, 2023. If an application is approved, the tax collector will calculate and process the refund of property taxes. If an application is denied, the property owner has the option to file an appeal with the value adjustment board.

The full Bulletin, PTO 23-01, can be viewed on Department’s website here.

For more hurricane-related information, including property taxes, visit the Department’s dedicated Hurricane Ian website here.

Form DR-5001, N. 01/23, can be found at the Florida Department of Revenue website,

Questions on Florida’s real property taxes can be directed to the Department at dorpto@floridarevenue.com.

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

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