‘Family First’ $2.7 billion tax relief package, budget passed by lawmakers

TALLAHASSEE, Fla. (FLV) – At the end of the 2023 legislative session, Florida lawmakers passed a massive tax relief package totaling around $2.7 billion.

The bill, SB 2500, heads to Gov. Ron DeSantis’ desk. It passed both chambers unanimously.

Lawmakers described the package as the “Family First Funding Framework.”

The package includes sales tax holidays and permanent sales tax exemptions on baby and toddler products such as diapers.

“Florida’s future is bright because this budget makes prudent and strategic investments to address the needs of our families, local communities, schools, and environment,” House Speaker Paul Renner, R-Palm Coast, said. “Feeling the strain of inflation and an affordability crisis, we are giving Florida families more of their money back.”

The legislation permanently exempts the sale of products from sales and use tax, including machinery and equipment used to produce renewable natural gas, baby and toddler products, diapers and incontinence products, oral hygiene products and firearm safety devices.

It also creates two “back-to-school” sales tax holidays, a “disaster preparedness” sales tax holiday, expands “Freedom Week” to “Freedom Summer,” a sales tax holiday on recreational items and more.

The budget totals $117 billion, a 5.5% increase over the current year’s budget.

Notably, the budget includes $252.8 million for teachers and other education personnel pay increases.

“I am proud to put forward a budget that allows us to deliver on the promise of leaving Florida better off than we found it for future generations,” Renner said.

Senate President Kathleen Passidomo, R-Naples, applauded the package coupled with her signature Live Local Act, which aims to make housing more affordable.

“With our Live Local Act, more Floridians can afford to live close to good jobs, where they can raise their families in the heart of the communities they serve,” she said. “Insurance and litigation reforms with strong protections for consumers, coupled with permanent tax relief on key items will help eliminate hidden costs that increase the price of goods and services, keeping Florida affordable for those at every income level and stage of life.”

A press release from Renner’s office celebrated PreK-12 appropriations included in the budget, which includes over $170 million in additional funding.

The Florida Education Finance Program, which is the primary outlet for public school funding across the state, received a nearly 10% increase, or an additional $2.2 billion, over the year.

Funding per student statewide increased nearly 5%, or $404.67, to a total of $8,648.11.

For higher education, $8.3 billion will be allocated to the state’s system: $350 million for the State University System for “performance-based incentive funding” and $155.7 million for the Florida College System for “workload funding.”

It will maintain state college and university tuition rates.

Florida was recently ranked number one in both education and higher education.

Additionally, the budget includes $36.2 million for each school district’s “college and technical center.”

“This is a fiscally responsible budget that makes meaningful investments in Florida’s families, public servants, and infrastructure while maintaining historic levels of reserves,” Appropriations Chair Tom Leek, R-Ormond Beach, said. “We increase state employee pay and provide salary increases for correctional officers, assistant state attorneys, and assistant public defenders.”

“We were also able to reduce the retirement years for special risk law enforcement back to 25 years from the current 30 years,” he said. “Thank you to Speaker Renner for the privilege of representing the House in the budget process this year.”

On infrastructure, $20.9 billion was given. That includes $13.6 billion for the Department of Transportation’s Transportation Work Program and $4 billion for several road projects. $401 million was allocated for local transportation projects.

$100 million was included for high-speed internet access.

On health care, $47.3 billion was allocated. That includes more than $76 million for Medicaid reimbursement rates and $20.6 million for KidCare eligibility expansion to 300% of the federal poverty level, $125 million for nursing home rates.

$295.4 million was also allocated for addressing the opioid epidemic.

On funding the justice system, $6.7 billion was given. That includes $33.3 million to expand education programs in the Department of Corrects and $29.5 million for the Inmate Welfare Trust Fund, which gives inmates access to wellness activities.

It also allocated $24.5 million for the Department of Law Enforcement’s IT, investigative and protection resources, along with $20 million for the State Assistance for Fentanyl Eradication in Florida program.

On Florida’s natural resources, $7.5 billion was allocated to “support and preserve environmental assets.”

That includes $1.1 billion for land acquisition and $320 million for the Resilient Florida Program, which helps protect waterways, coastlines and shores.

More environmental funding includes $694.6 million for restoration, $200 million for wastewater grants and $50 million for springs “restoration, protection, and preservation.”

Florida TaxWatch President and CEO Dominic Calabro also touted the passage of the package.

“The bill passed by the Florida Legislature today is a clear ‘win’ for all taxpayers across Florida, especially families,” Calabro said. “Florida TaxWatch commends our state’s strong leadership, particularly Governor DeSantis, Senate President Kathleen Passidomo, and House Speaker Paul Renner, for this family-focused tax relief package that will make a real, meaningful difference in the everyday lives of Florida’s hardworking taxpayers.” 

DeSantis thanked lawmakers for a “productive” session and has said that bill signings will continue throughout May. Read more here.