Sales Tax Holidays, Insurance Premium Breaks Ahead

CAPE CANAVERAL, Fla. – Florida is once again giving back some of the tax money it collects to residents.

As usual, the annual “sales tax holidays” are going into effect — periods during which sales tax isn’t levied on certain types of spending.

New this year: A one-year elimination of the tax on residential property and flood insurance premiums.

House Bill 7073, signed into law Tuesday by Gov. Ron DeSantis, had support from Democrats and Republicans. No one in the state Senate or the state House of Representatives voted against it.

The total of the tax relief is $1.07 billion, the governor’s office said. By contrast, the total state budget as passed by the Legislature totals $117.46 billion, an amount that’s likely to come down somewhat when DeSantis acts on the budget for the fiscal year beginning July 1.

He said Tuesday that would happen “probably in the not-too-distant future.” He’s been using the time since the Legislature passed the budget on March 8 to travel the state and tout his support for popular provisions in the spending plan, generating many days of positive publicity.

On Tuesday, he and others at an event Cape Canaveral in Brevard County talked up this year’s version of the annual tax-reduction law. “This tax relief package will provide much-needed relief for Florida’s families,” DeSantis said.

Provisions include:

— A one-year exemption on taxes on residential property and flood insurance premiums. Florida imposes a 1.75% tax on most Florida insurance premiums, according to a legislative staff analysis. The tax would be waived for 12-month policies with an effective date between Oct. 1, 2024, and Sept. 30, 2025. During the legislative session, the value of the insurance tax cut was estimated to average $60 per homeowner, and $75 for those with flood insurance.

— Disaster preparedness sales tax holidays from June 1-14 and Aug. 24-Sept. 6 for a range of items such as tarps, batteries, flashlights, portable power banks and generators. Pet supplies are also included. The first one coincides with the beginning of the Atlantic hurricane season and the second precedes the Sept. 10 peak of storm season.

— Back-to-school sales tax holiday from July 29-Aug. 11 for school supplies, computers and clothing.

— Tool-time sales tax holiday from Sept. 1-7, for power tools, hand tools, toolboxes, and other items. “Some people are handymen, are in business in this, but other people just have it around their house and that’s fine, use it. We really want to do that,” DeSantis said.

— “Freedom Month” sales tax holiday from July 1-31, for a range of recreational and time-off pursuits such as pool floats, fishing supplies, outdoor equipment and admissions to museums, theaters state parks.

The sales tax holidays have various limits for different items, such as clothing priced at $100 or less, or computers priced at $1,500 or less during the back-to-school holiday, or manual can openers that cost $15 or less, or generators that cost $3,000 or less for the hurricane sales tax holidays.

Specifics about each holiday are online at floridarevenue.com/SalesTaxHolidays.

The law is crafted in a way that attempts to minimize sales tax breaks for tourists. The holidays don’t apply to sales within theme parks, entertainment complexes, public lodging or airports.

Some of the tax reductions go to businesses.

The state will increase the amount it allocates to give tax credits to companies that make charitable contributions to child-welfare organizations and provide a tax credit for employers that operate or support child-care programs for their employees.

Businesses that hire people with disabilities would also get tax money in the form of credits. “If you look at some companies that have done this, like Publix, they’re providing opportunities for all these great people that have unique abilities and have certain challenges and these are very productive citizens and they do a great job,” DeSantis said.

DeSantis also touted savings for frequent users of toll roads, something that’s in the still-unsigned state budget but the governor said on April 1 would go into effect immediately. The provision spends $450 million of state money for a one-year renewal of a program that gives 50% toll discounts to motorists who use the state’s toll roads at least 35 times a month.

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By Anthony Man