The Senate on Monday released a ratcheted-up package of proposed tax cuts, as it prepares for negotiations with the House, which has pitched a $5.43 billion measure that includes reducing the state’s sales-tax rate.
The Senate Finance and Tax Committee is scheduled Tuesday to take up the Senate bill (SPB 7034), which would reduce revenue by $1.83 billion next fiscal year.
Last week, the Senate said it would propose permanently eliminating sales taxes on clothes and shoes that cost $75 or less and holding a series of sales tax “holidays,” including a new one on hunting equipment. The bill released Monday also included a one-time credit on annual vehicle registration fees and a three-year extension to an existing freeze on local cell phone and cable TV taxes.
The Senate plan does not include the House’s big-ticket proposal to reduce the state sales-tax rate from 6 percent to 5.25 percent.
Senate President Ben Albritton, R-Wauchula, has said it would be prudent for any tax package this year to make mostly one-time cuts to avoid having to possibly raise taxes two or three years down the road. He also has called for taking more time to study potential longer-term cuts, and the Senate proposal would direct the Legislature’s Office of Economic & Demographic Research to conduct a study on reducing or eliminating property taxes — a priority of Gov. Ron DeSantis.
The House tax package, which the House passed last week, also would reduce a commercial-lease tax from 2 percent to 1.25 percent, cut the sales-tax rate on electricity from 4.35 percent to 3.6 percent, reduce the tax rate on sales of new mobile homes from 3 percent to 2.25 percent and trim the rate on coin-operated amusement machines, such as pinball machines, from 4 percent to 3.25 percent.
DeSantis, who has been battling with House leaders on a series of issues, last week called the House proposal “crumbs for most working class people.” He has proposed a one-time property-tax credit and then asking voters in 2026 to increase the homestead exemption or eliminate residential property taxes.
The governor also said a sales-tax cut would benefit tourists.
“I don’t know why you would want to relieve the burden on when Brazilians come to Disney,” DeSantis said Thursday. “I want the government funded by our non-residents as much as possible.”
He also recommended the elimination over two years of the commercial lease tax — a longtime priority of business groups — along with holding sales tax holidays on school supplies, recreational items and activities, hurricane supplies and ammunition and firearms.
The Senate proposal also would continue the longstanding practice of holding tax holidays, when shoppers can avoid paying sales taxes on designated purchases.
The Senate would hold a tax holiday on disaster-preparedness supplies in May; a tax holiday on recreational items and activities in June and July; a tax holiday on school supplies in August; a tax holiday on tools around Labor Day; and a “hunting season” tax holiday that includes ammo and guns from mid-September until the end of the year.
The two-month holiday on recreational items and activities would save people an estimated $237.6 million. It would apply to such things as boating, camping and pool items and tickets to movies, sporting events, state parks and museums.
The Senate’s proposed permanent elimination of sales taxes on clothes costing $75 or less is projected to reduce state and local revenues by $857.8 million next year, while the vehicle-registration fee credits would total $608.2 million.
–Jim Turner, News Service of Florida
Keep Flagler Beautiful says
Why should there be a sales tax holiday for hunting equipment, of all things? Hunting is a pastime, and a specialized one. I would rather see sales tax eliminated on something that would benefit all or most Floridians. It sounds like a lobbyist has been lurking around the Florida Senate.
Pogo says
@NRA wins again
… amazing.
Atwp says
O Republicans!