West Palm Beach, Fla. – Today, Governor Ron DeSantis signed CS/HB 7123: Taxation at the 33rd Annual Governor’s Hurricane Conference. Highlights of the bill include tax relief for Hurricane Michael damage and a “back-to-school” sales tax holiday, among other benefits.
“I’m pleased to be signing HB 7123 today, which includes temporary tax relief to help the people of Northwest Florida,” said Governor DeSantis. “My administration remains focused on making sure Northwest Florida recovers from Hurricane Michael, while also preparing for the upcoming Hurricane Season. Statewide, we remain committed to ensuring that communities impacted by recent hurricanes are able to make a full recovery.”
“This session, lawmakers approved almost $400 million in comprehensive tax relief that will help Florida’s families and communities breathe easier,” said Lt. Governor Jeanette Nuñez. “Not only will residents of our state enjoy a back-to-school sales tax holiday, the bill also incentivizes hurricane preparedness with a similar tax break on materials that are critical for storm readiness. I am pleased to know Floridians will benefit from this crucial tax relief.”
The bill aims to provide tax relief to the people affected by Hurricane Michael and aid in preparation for the upcoming hurricane season. Currently, Florida’s per capita state tax burden of $1,822 is the second lowest among all states. Governor DeSantis is committed to reducing Floridians’ tax burden even further and making Florida the most dynamic economy in the nation. CS/HB 7123 combined with the FY 2020 budget will save Floridians almost $400 million. These tax cuts are outlined below:
Property Tax Cut
- $272.3 Million - The FY 2020 budget reduces the school property tax millage rate by 0.148 mills for an overall annual tax savings of $272.3 million.
Sales Tax Holidays to Save Families
- $47.2 Million - Two sales tax holidays which will provide Florida families with the following savings in the upcoming fiscal year:
- $41.7 million from a 5-day back-to-school sales tax holiday helping Florida families prepare for the upcoming school year.
- $5.5 million from one-week disaster preparedness sales tax holidays to encourage Floridians to be prepared for the hurricane season.
Commercial Rent Reduction
- $64.5 Million - Reduces the state tax rate on the rental or lease of commercial real property from 5.7 percent to 5.5 percent, generating annual savings of $64.5 million beginning January 1, 2020.
Hurricane Michael Relief
- $1.3 Million - Includes relief from certain sales, fuel, and property taxes for areas affected by Hurricane Michael.
- $0.8 million from sales tax refunds on fences and building materials, and fuel tax refunds for agricultural shipments and debris cleanup.
- $0.5 million from property tax relief from tangible personal property not as high for at least 60 days due to the effects of Hurricane Michael in affected counties.
Various other Reductions
- $8.5 Million - Various other reductions including a sales tax exemption on the purchase of goods later donated to non-profit organizations and a doubling of the discount on civil penalties offered to individuals choosing to attend traffic school, saving Floridian’s a total of $8.5 million.