It’s not over until it’s over, but at least it seems close to being over. The Florida House and Senate have approved a tax-cut package and sent it to Governor Rick Scott (R). He has expressed his approval, saying, “I applaud the Florida House and the Florida Senate for their work on this legislation and I look forward to working with them to keep cutting taxes next year and to keep Florida working.”
The tax-cut package would impact Florida sales tax in several ways: creating a sales tax holiday, sales tax exemptions, and a controversial sales tax cap. Read on for details.
Back-to-school sales tax holiday
In 2014, Florida provided a two-day back-to-school sales tax holiday. The tax-cut package includes a 10-day back-to-school sales tax holiday.
Sales tax exemptions
Higher education is costly. To make it a bit more affordable, the tax-cut package creates a one-year exemption from sales tax for college textbooks.
The bill also includes sales tax exemptions for the following:
- Agricultural machinery
- Gun club memberships
- Military members importing vehicles from overseas
Sales tax cap
It’s hard to think of Florida without thinking of warm weather activities such as boating. The proposed package sets a $60,000 cap on sales taxes for boat repairs. This controversial aspect of the bill, while seemingly a gift to the uber-wealthy, will purportedly stimulate job growth in the state’s marinas and boatyards.
One of the most widespread cuts would be "a $207 million reduction in the tax on cable, phone and satellite television services” Orlando Sentinel.
We’ll delve into additional details once the budget has been finalized and bears the governor’s signature. Lawmakers must establish a budget by June 30 or the state will face a partial government shutdown.
