Florida bill sets tax breaks for back-to-school supplies, disaster preparedness, more

TALLAHASSEE, Fla. – A Florida Senate panel favored a bill Tuesday setting sales tax exemptions for back-to-school items, disaster preparedness items, outdoor sporting supplies and some property owners, among other categories.

SB 7074 was filed by the Finance and Tax Committee. It was read by Sen. Blaise Ingoglia, R-Spring Hill.

Back-to-school items exempted under the bill include certain clothing, school supplies, learning aids and personal computers. A sales tax break on those items would occur from July 29 to Aug. 11.

Under SB 7074, disaster preparedness items were deemed as “disaster preparation and evacuation of pets.” The sales tax break on those items will run from June 1 to June 14 and Aug. 24 to Sept. 6. Hurricane season begins June 1, and the peak begins leading into the fall.

Outdoor sporting equipment exemptions are to include boating and water activity supplies, camping supplies, fishing supplies, general outdoor supplies, and residential pool supplies. The sales tax relief on those items will occur from July 1 to July 31.

The Finance and Tax Committee unanimously approved the bill 16-0.

Ingolgia explained that the proposal “provides provides broad based tax relief to families and businesses in Florida.”

Among its changes, an ad valorem, or property tax, for owners to rebuild their homestead property and maintain benefits is changed from three to five years. The bill also makes a change to the insurance premium tax with flood insurance polices exempt for one year.

Moreover, an exempted change to the corporate income tax will give a tax credit to tax credit for corporations who employ persons with unique abilities. The bill also provides changes to the documentary stamp tax, including exemptions to certain notes and obligations valued at no greater than $3,500.

Additionally, the Strong Families Tax Credit program cap is increased from $20 million to $40 million.

Overall, $901 million of revenue is reduced from the bill, breaking down to $235 million in recurring and nearly $665 million in nonrecurring funds.

The tax bill comes as lawmakers are also set to ratify the upcoming year’s spending package.

SB 7074 would take effect come July 1.