Good news for Floridians this week as Governor Ron DeSantis has passed through a new bill containing a slew of tax relief measures for families across the state, worth over $1 billion. Let’s take a look at what’s changing.
DeSantis’s Tax Relief Initiatives
This week, DeSantis signed House Bill 7073, which will see a series of tax reliefs across various areas over the next few months.
Savings for Floridians
Average Floridians could save thousands in cuts and incentives designed to, as DeSantis put it, “provide much-needed relief for Florida’s families, especially as the D.C. political class shows no signs of reversing course on the inflationary policies of the federal government.”
Continuation of Relief Efforts
This announcement follows similar news last month, when DeSantis signed off $450 million in toll relief – bringing the total savings for Florida families to $1.5 billion for 2024-2025.
Cumulative Savings
According to DeSantis’ office, “Since 2019, the Governor has secured nearly $6.7 billion in tax cuts while maintaining a comfortable budget surplus.”
Focus Areas
Key parts of the new tax relief package include a series of sales-tax holidays, an increase in tax breaks for businesses that donate to children’s charities, and a one-year exemption for homeowners paying taxes on residential property and flood insurance premiums. But let’s break down what these breaks could mean for you:
Home Insurance Tax Exemptions
The new exemptions mean that eligible homeowners will have a year’s respite from paying taxes on residential property and flood insurance premiums rather than the 1.75% tax Florida normally charges on insurance policies.
Tax Exemption Timelines
This only applies to residential policies that are in play between October 1st, 2024, and September 30th, 2024 and is expected to save residents around $502 million.
Florida Sales Tax Holidays
Tax holidays are here again this year, including:
Disaster Preparedness Holidays
- Disaster Preparedness Holidays: From June 1st to 14th and August 24th to September 6th, families can stock up on hurricane supplies without paying sales tax. This includes flashlights and lanterns under $40, reusable ice under $20, radios under $50, tarps and ground anchors under $100, coolers and portable power banks under $60, batteries and fuel tanks under $50, smoke detectors, fire extinguishers, and carbon monoxide detectors under $70, and generators under $3,000.
Savings on Education Essentials
- Back-to-School Sales Tax Holiday: This holiday takes place from July 29th to August 11th, so families can save on back-to-school essentials. This includes clothing, footwear, and backpacks under $100, school supplies under $50, learning aids under $30, and personal computers or computer-related accessories under $1,500.
Tax-Free Purchases for Skilled Workers
- Tool Time Sales Tax Holiday: Taking place from September 1st to 7th, Floridians can enjoy tax-free purchases of tools used by skilled workers. This includes certain hand tools under $50, power tools under $300, work boots under $175, safety equipment, shop lights, toolboxes, belts, and plumbing and electrical equipment.
Exempted Purchases For Freedom Month
- Freedom Month Sales Tax Holiday: From July 1st to 31st, Florida families can make tax-free purchases on a wide range of summer essentials, outdoor equipment, and admissions to recreational facilities. Additionally, tickets, memberships, and passes bought during this period for use until December 31st are also exempt from sales tax.
Child Tax Credits
These tax cuts are for businesses but could have an indirect impact on families across the Sunshine State.
- The Strong Families Tax Credit cap has been doubled from $20 million to $40 million. This credit offers tax breaks to businesses that donate to child-focused charities.
- There’s a new tax credit for employers who either run or back childcare programs for their employees.
Other Tax Credits
- Businesses that hire individuals with disabilities can now get a tax credit on their corporate income tax.
- In certain emergencies, there are now automatic extensions for filing sales tax and corporate income tax returns.
- Limits have been put in place on documentary stamp tax assessments for reverse mortgages.
Speaker’s Endorsement
Florida House Speaker Paul Renner had this to say about the new tax relief package, “At a time of rising inflation, Florida’s legislative leaders and Governor DeSantis continue to deliver meaningful tax relief to help the people of Florida.”
The Florida Way
Renner went on to attest that “People across the country are finding out what Floridians have known for years – allowing people to keep more of what they earn benefits Florida families, workers, retirees, and businesses. With the signing of HB 7073, we continue that tradition–a tradition we like to call ‘the Florida Way.'”
The post – Florida’s Massive Tax Cut Could Mean More Money for You – first appeared on Wealthy Living.
Featured Image Credit: Shutterstock / chaylek.
The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
