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Florida Governor Proposes $1.1 Billion in Tax Relief

By: Emily Hollingsworth

 

Florida taxpayers could see $1.1 billion in tax relief under Republican Gov. Ron DeSantis's tax cut plan.

 

The governor's plan for the 2023 legislative session, announced September 20, includes permanent tax exemptions for various children's and household items and the continuation of several tax holidays in 2023.

 

“I’m proud that Florida has a record budget surplus and am happy to propose historic tax relief to Florida families,” DeSantis said in a release. “This proposal will allow families to purchase items for their children at a lower cost and help families keep more money in their pockets. I look forward to working with the Legislature to bring this major relief to Florida families.”

 

The state in July reported a budget surplus of $21.8 billion for fiscal 2022, which includes $15.7 billion in unallocated general revenue and $2.7 billion in the rainy day fund.

 

The governor's tax relief proposal would permanently exempt baby and toddler necessities, including diapers, clothing, cribs, and strollers; medical equipment and items with medicinal ingredients that aren’t currently exempt from sales tax; and pet medications. The permanent tax exemptions are estimated to save taxpayers $136.5 million, $58.5 million, and $29 million, respectively.

 

The plan also includes one-year tax exemptions for:

  • household items under $25, such as laundry detergent, trash bags, toilet paper, and hand soap ($112.3 million in estimated savings);
  • children’s books for children under 17 ($16.8 million in estimated savings);
  • children’s athletic equipment, such as soccer balls, some roller skates, and footballs ($33 million in estimated savings);
  • children’s toys for children from ages 2-12 ($116 million in estimated savings); and
  • pet food for household pets ($160 million in estimated savings).

 

The tax relief plan would also extend tax holidays for another year, such as the two-week disaster preparedness tax holiday and the one-week tools and home improvement tax holiday. It would reinstate a two-week back-to-school tax holiday in the fall and add another two-week back-to-school tax holiday for students returning from winter break. The two back-to-school holiday periods could result in an estimated $210 million in savings for residents, according to the release.

 

It's unclear whether the Legislature would pass the governor's plan as proposed.

Company Tax Notes
Category FREE CONTENT;ARTICLE / WHITEPAPER
Intended Audience CPA - small firm
CPA - medium firm
CPA - large firm
Published Date 09/20/2022

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Tax Notes is the first source of essential daily news, analysis, and commentary for tax professionals whose success depends on being trusted for their expertise.

Tax Notes is a portfolio of publications offered by Tax Analysts, a nonprofit tax publisher. It provides comprehensive and impartial coverage of tax news, while its commentary contributes important voices to the discussion and understanding of tax policy.

Founded in 1970, Tax Analysts was created to foster free, open, and informed discussion about taxation. In 1972 Tax Analysts published Tax Notes Federal, its first weekly journal, featuring news, commentary, and analysis on federal taxation. In 1989 Tax Analysts added Tax Notes International, a weekly magazine focused on international taxation. Tax Notes State rounded out the weekly portfolio in 1991. Each magazine offers best-in-class tax commentary and analysis on the latest changes in tax law and policy, as well as on court opinions, legislative action, and revenue rulings.

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