Three Tax Holidays coming
Last Friday, Governor Ron DeSantis signed into law House Bill 7061, Florida’s Tax Cut Package. It includes three separate tax holidays for the upcoming months.
The first two will overlap each other. The first is “Disaster Preparedness” beginning May 28 and going through June 6, 2021. The second is “Freedom Week” from July 1 through July 7, 2021 and the third tax holiday is the Back-to-School tax holiday from July 31 through August 9, 2021.
The Disaster Preparedness is a 10-day tax holiday that allows Floridians to prepare for hurricane season while saving money on disaster preparedness items such as flashlights under $40, batteries less than $50, tarps under $100, generators less than $1,000, and more.
Freedom Week is the first ever tax holiday of its kind that provides 7 days of sales tax savings on outdoor recreation purchases, such as the first $100 of the sales price of sunglasses, the first $200 of the sales prices of tents, and the first $500 of the sales price of kayaks or canoes, as well as tickets for events, museums, the arts, and more.
And finally, the Back-to-School tax holiday will span10 days. Floridians will pay no sales tax for certain clothing of $60 or less per item, school supplies of $15 or less per item, and the first $1,000 of personal computers and related accessories.
The bill also includes Tax Cuts to Support Florida’s Seniors Living Independently
HB 7061 creates Florida’s first permanent sales tax exemption for independent living items for seniors in our state. Items like bed transfer handles, bed rails, grab bars, and shower seats will be exempt from sales tax for individual purchases.
Ad Valorem Tax Breaks
To support housing options for all Floridians, the tax package doubles the ad valorem tax exemption for certain affordable housing properties from 50% to 100%. Additionally, the bill includes implementation language for a proposed constitutional amendment providing property tax relief for residential property improvements made for the purpose of flood mitigation. This property tax relief is subject to the approval by the voters on the 2022 General Election ballot.
Tax Credits for Florida Businesses
•Strong Families Tax Credit Program
To help support the wellbeing of children in our state, HB 7061 creates the Strong Families Tax Credit Program for businesses that make monetary donations to certain eligible charitable organizations that provide services focused on child welfare.
•Internship Tax Credit
The newly created Internship Tax Credit provides tax relief for Florida businesses that employ and retain student interns, encouraging companies to hire young Floridians attending college in our state.
•Brownfields Tax Credit Program
The bill also provides a one-time increase in funding of $17.5 million for the Brownfields Tax Credit Program to fund a backlog of approved credits. This program, administered through the Florida Department of Environmental Protection, incentivizes businesses to clean up and redevelop hazardous sites to protect our environment and economy.