Businesses paying rent on commercial property and consumers accustomed to buying during sales tax holidays would be the big winners under the House tax cut package.
The bill (PCB WMC 24-05) would save companies and consumers $728.1 million over the next two fiscal years.
The largest single cut in the bill would be a move to reduce the business rent tax cut to 1.25% starting July 1 and lasting for 12 months. The rate is currently 4.5%, but is slated to drop to 2% in August. The reduction is tied to the state's unemployment trust fund, which needed to be replenished after it was reduced during the COVID-19 pandemic, but is being refurbished at a faster rate than economists projected. Businesses would save $339.6 million under the move.
Four sales tax holidays are also included in the package, but some are pared back from what lawmakers approved in recent years.
The traditional back-to-school sales tax holiday on school items, clothes and laptops $1,500 or less would last two weeks starting July 29, but a second two-week holiday for the Spring semester that lawmakers approved for the current year isn't included. Consumers are projected to save $97.3 million.
A sales tax break on a variety of events and outdoor times dubbed "Freedom Summer" has been reduced to "Freedom Month" under the bill. The break applies to tickets to sports events, movies, state parks, museums, ballets, plays, concerts, fairs, festivals and gym memberships.
Camping, fishing, boating and other outdoor supplies and items are included as well, but it would last only through the month of July, instead of for three Summer months as it did last year. Consumers are expected to save $90.4 million.
Two separate disaster preparedness sales tax holidays on hurricane season items such as generators, batteries, tarps and more would run June 1-14 and Aug. 24-Sept. 6. Shoppers are poised to save $80.6 million.
The "tool time" sales tax holiday would also return under the measure and would last one week starting Sept. 1. The sales tax break would apply to hand tools $50 or less, power tools $300 or less, work gloves $25 or less, safety glasses $50 or less, work boots $175 or less, tool belts $100 or less and more. Consumers are projected to save $19.8 million.
Other tax cuts in the bill include a break of up to $10,000 per business for companies that hire disabled workers, which is expected to save $5 million for businesses, and increasing the cap on the Strong Families Tax Credit from $20 million to $40 million, which grants businesses that donate to charities supporting children's welfare a break on corporate income and other taxes.
Two items that didn't make it into the package were a one-year cut in insurance premium taxes, which Gov. Ron DeSantis recommended in his budget proposal, and a way to refund the $562 million derived from a defunct Hillsborough County transportation tax. In last year's tax package, the House preferred to cut sales taxes in Hillsborough County, replenishing the county until the money was depleted, but couldn't reach an agreement with the Senate on how to dispose of the funds.
The tax cut bill will be heard in the House Ways and Means Committee on Wednesday.
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