Florida to have 5 more sales tax holidays in 2024

On May 7, 2024, Florida Governor Ron DeSantis signed a bill establishing five more Florida sales tax holidays for 2024: Two sales tax holidays for disaster preparedness, one back-to-school sales tax holiday, a tax-free period for tools and equipment, and a monthlong sales tax holiday for admissions charges plus a host of outdoor and recreation items. These are in addition to four 2024 sales tax holiday holdovers from 2023.

The first new 2024 Florida sales tax holiday starts June 1, giving affected businesses less than a month to set systems up to comply with the requirements. Fortunately, Florida has provided a version of these tax-free periods in the past, and the Florida Department of Revenue wasted no time in publishing guidance for businesses and consumers.

Here’s what you need to know.

The first tax-free event of the year is the Florida Disaster Preparedness Sales Tax Holidays, which run June 1 through 14, 2024, and again August 24 through September 6, 2024.

The following products qualify for this temporary sales tax exemption:

• Portable generators priced $3,000 or less
• Bungee cords, ratchet straps, ground anchor systems, or tie-down kits priced $100 or less
• Tarpaulin or other flexible waterproof sheeting priced $100 or less
• Carbon monoxide detectors, smoke detectors or smoke alarms, and fire extinguishers priced $70 or less
• Coolers and ice chests (nonelectric food storage) priced $60 or less
• Portable power banks priced $60 or less
• Any gas or diesel fuel containers, including LP gas and kerosene containers, priced $50 or less
• Portable self-powered radios, two-way radios, or weather band radios priced $50 or less
• Qualifying batteries, including rechargeable batteries (excluding automobile and boat batteries), priced $50 or less
• Portable self-powered light sources priced $40 or less
• Reusable ice packs priced $20 or less
• Supplies necessary for the evacuation of household pets: 
  • Bags of dry cat or dog food weighing up to 50 pounds priced $100 or less
  • Pet carriers and portable kennels priced $100 or less
  • Over-the-counter pet medications priced $100 or less
  • Pet beds priced $40 or less
  • Cat litter weighing up to 25 pounds or less priced $25 or less
  • Collars, leashes, muzzles, and pet pads priced $20 or less
  • Cat litter pans, collapsible or travel-sized food/water bowls, hamster or rabbit substrate, pet waste bags, and manual can openers priced $15 or less
  • Wet cat or dog food priced $10 or less per can or pouch (or the equivalent)

Next up is the Florida Freedom Month Sales Tax Holiday, which runs July 1 through 31, 2024. During that time, the following transactions are exempt from Florida sales and use tax:

• Admissions to fairs, festivals, movies, and cultural, musical, theatrical, and sporting events to be held on any date(s) from July 1 through December 31, 2024 (including qualifying season tickets)
• Admissions to private and membership clubs providing fitness facilities (from July 1 through December 31, 2024) 
• Museum entry, including annual passes
• State park entry, including annual passes
• Electric scooters priced $500 or less (must meet other qualifications)
• Boating and water activity supplies:
  • Canoes and kayaks priced $500 or less
  • Paddleboards and surfboards priced $300 or less
  • Kneeboards, wakeboards, water skis, and recreational inflatable water floats/tubes capable of being towed priced $150 or less
  • Coolers, life jackets, oars, and paddles priced $75 or less
  • Safety flares priced $50 or less
  • Inflatable chairs, pool floats and toys, and recreational pool tubes priced $35 or less
  • Goggles, snorkels, and swimming masks priced $25 or less
• Camping supplies:
  • Tents priced $200 or less
  • Camping stoves, collapsible camping chairs, portable hammocks, and sleeping bags priced $50 or less
  • Camping lanterns and flashlights priced $30 or less
• Fishing supplies (for recreational use only, not commercial fishing):
  • Rods and reels priced $150 or less (if sold as a set) or $75 or less (if sold individually)
  • Tackle boxes or bags priced $30 or less
  • Bait or fishing tackle priced $10 or less (if multiple items are sold together) or $5 or less (if sold individually)
• General outdoor supplies:
  • Bicycles priced $500 or less
  • Outdoor charcoal or gas grills priced $250 or less
  • Binoculars priced $200 or less
  • Sunglasses priced $100 or less
  • Bicycle helmets and hydration packs priced $50 or less (bike helmets for youth are always sales tax exempt)
  • Water bottles priced $30 or less
  • Sunscreen, sunblock, and insect repellent priced $15 or less
• Residential pool supplies:
  • All residential pool and spa chemicals priced $150 or less, when purchased by an individual
  • Individual residential pool and spa replacement parts, nets, filters, lights, and covers priced $100 or less

The summer Back-to-School Sales Tax Holiday starts before the conclusion of Freedom Month. From July 29 through August 11, 2024, the following items are sales tax exempt:

• Personal computers and computer-related accessories priced $1,500 or less
• Clothing, footwear, wallets, and qualifying bags priced $100 or less
• School supplies priced $50 or less
• Learning aids and jigsaw puzzles priced $30 or less

Finally, fall brings the Florida Tool Time Sales Tax Holiday. From September 1 through 7, 2024, the following items are exempt from Florida sales and use tax:

• Power tools priced $300 or less
• Toolboxes for vehicles priced $300 or less
• Ladders priced $250 or less
• Work boots priced $175 or less
• Power tool batteries priced $150 or less
• Handheld pipe cutters, drain opening tools, and plumbing inspection equipment priced $150 or less
• Industry textbooks and code books priced $125 or less
• Electrical voltage and testing equipment priced $100 or less
• Hard hats and other head protection priced $100 or less
• Shop lights priced $100 or less
• Tool belts priced $100 or less
• Hearing protection priced $75 or less
• Toolboxes priced $75 or less
• Duffel bags or tote bags priced $50 or less 
• Fuel cans priced $50 or less
• Hand tools priced $50 or less
• LED flashlights priced $50 or less
• Safety glasses priced $50 or less
• Shovels and rakes priced $50 or less
• Protective coveralls priced $50 or less
• High-visibility safety vests priced $30 or less
• Work gloves priced $25 or less

Florida tax holidays don’t apply to transactions occurring within an airport, entertainment complex, public lodging establishment, or theme park. Likewise, they don’t apply to items purchased for commercial purposes, or to rentals of otherwise eligible items. See the Florida Department of Revenue for additional guidance.

The temporary sales tax exemption applies to qualifying items sold under a “buy one, get one free” or “buy one, get one for a reduced price” deal only if the total price of two items is under the sales tax holiday price cap. 

Per the Florida Department of Revenue, “The total price of items advertised as ‘buy one, get one free’ or ‘buy one, get one for a reduced price’ cannot be averaged in order for both items to qualify for the exemption.”

Qualifying items purchased with a gift card during a sales tax holiday qualify for the temporary sales tax exemption regardless of when the gift card itself was purchased.

However, should a gift card purchased during a Florida sales tax holiday be used to buy qualifying items after the conclusion of a sales tax holiday, Florida sales tax would apply to the sale. 

Gift cards themselves aren’t subject to Florida sales tax.

It depends.

Manufacturer’s coupons, discounts, and rebates don’t reduce the sales price of an item during a sales tax holiday because the retailer is reimbursed for the amount of the discount provided to the customer. So, if the item qualifies for a sales tax holiday before a manufacturer’s coupon, discount, or rebate is applied, it would qualify for the temporary sales tax exemption. If it doesn’t, it wouldn’t.

Store coupons, discounts, and rebates do reduce the amount received by the retailer. So, if a store coupon, discount, or rebate brings an otherwise eligible item under a sales tax holiday price cap for that item, the sale would qualify for the temporary sales tax exemption.

If all items sold as a bundled transaction or set are eligible for a Florida sales tax holiday and meet the price cap, items sold as a unit or bundled together would qualify for the temporary sales tax exemption. 

But if just one item of a set or bundled transaction isn’t eligible for the sales tax holiday, the set or unit would be subject to sales tax. And if two qualifying items sold as a set exceed the price cap, they can’t be unbundled. 

The Department of Revenue provides this example, apropos of the Freedom Month sales tax holiday: “A pair of water skis normally sells for $300. The pair of skis cannot be split in order to sell each ski for $150 to qualify for the exemption.”

When an eligible item purchased during a sales tax holiday is exchanged after the tax-free period, no sales tax is due so long as the exchange is for the same item in a different size or color. 

Yet if the customer returns an eligible item purchased during a sales tax holiday and receives credit toward the purchase of a different item that didn’t qualify for the temporary exemption, the new item would be subject to Florida sales tax.

If a customer returns a qualifying item purchased during a sales tax holiday and requests a sales tax refund or credit:

• The customer must produce a receipt or invoice showing that sales tax was charged and paid, or
• The retailer must have documents proving tax was paid on the original purchase

Qualifying items purchased on layaway are eligible for the temporary sales tax exemption provided by a sales tax holiday so long as the customer either:

• Accepts delivery of the merchandise during the sales tax holiday period, or
• Puts an eligible item on layaway during the sales tax holiday, even if the final payment is made after the conclusion of the tax-free period

Under Rule 12A-1.045 of the Florida Administrative Code, shipping and delivery (i.e., transportation) charges that are included in the sales price of taxable goods are subject to sales tax, while shipping and delivery charges included in the sales price of exempt goods are sales tax exempt.

Separately stated transportation charges aren’t subject to Florida sales tax so long as the consumer has the ability to avoid the charges. Otherwise, if the shipping charges are separately stated, they must be proportionately allocated to each item. This can impact the sales price of each item, pushing it above a sales tax holiday price cap. 

The amount of the shipping charge applicable to each item is calculated by multiplying the total shipping charge by the percentage of cost for each item.

If you’re registered for Florida sales tax and sell items that are eligible for a Florida sales tax holiday, you need to be ready to exempt qualifying sales. If you sell items qualifying for the disaster preparedness sales tax holiday that starts June 1, you don’t have much time.

Automating sales tax calculation, collection, and remittance can reduce the compliance burdens stemming from sales tax holidays. Learn more about sales tax automation.