Scott Signs Off On Package Of Tax Breaks

May 26, 2017

Gov. Rick Scott signed a tax-cut package Thursday that — while vastly scaled back from what he wanted — eliminates the so-called “tampon tax” and offers tax holidays for back-to-school shoppers and Floridians preparing for hurricane season.

With the package offering $91.6 million in tax breaks during the upcoming year, Scott signed the measure (HB 7109) during a ceremony at 3Cinteractive in Boca Raton.

“Since I’ve been in office, I’ve fought to cut taxes and reduce burdensome regulations to help boost Florida’s economy and ensure our children and grandchildren have the opportunity to succeed in our great state,” Scott said in a prepared statement. “Every time we cut taxes, we are encouraging businesses of all sizes to create opportunities for families across the state, and more money is put back in taxpayers’ pockets.”

The savings are projected to reach $180 million over two years due to some permanent cuts.

Scott had requested $618.4 million in cuts before the legislative session, and an initial House package approached $300 million. But the package was scaled back substantially as the House and Senate negotiated a budget for the fiscal year that starts July 1.

Business lobbying groups Thursday were quick to praise Scott for signing the package. Floridians will get the first tax breaks next week, when they can buy hurricane supplies without paying sales taxes during a three-day “holiday” starting June 2.

“These tax cuts are going to be huge this year,” Florida Retail Federation spokesman James Miller said. “It hits a number of different sectors, and a number of different industries. Business owners across the state are going to be really happy with the result of this.”

The window on tax-free storm gear is timed with the start of the six-month hurricane season, which begins June 1.

With the holiday estimated to save shoppers $4.5 million, sales taxes will not be collected during the period on items such as portable self-powered lights selling for $20 or less; portable self-powered radios and tarpaulins at $50 or less; first-aid kits up to $30; and portable generators up to $750.

The next high-profile savings, projected at $33.4 million, will come during a three-day back-to-school tax holiday set to begin Aug. 4.

Shoppers will be able to avoid paying sales taxes on clothes, footwear and backpacks costing $60 or less; school supplies costing $15 or less, and personal computers priced up to $750.

Two other key portions of the package, an elimination of sales taxes on feminine hygiene products and a reduction in a commercial lease tax, both go into effect on Jan. 1.

With the issue known as the “tampon tax,” eliminating sales taxes collected on products such as tampons, sanitary napkins and panty liners, is expected to save $4.8 million for Floridians next fiscal year. The savings are to slated to grow to $11.2 million when the tax cut is in effect for a full year.

“This common sense legislation will result in a tax savings for women all over the state who purchase these necessary products,” said Sen. Kathleen Passidomo, a Naples Republican who led efforts to repeal the tax.

Meanwhile, a reduction in the commercial lease tax from 6 percent to 5.8 percent is projected to save businesses $25.4 million next fiscal year, with that total growing to $61 million when the cut is in effect for a full year.

Business groups have long argued that the state should repeal the tax.

“The business rent tax reduction accounts for two-thirds of the overall cut in the package — that’s a significant show of support for small business and an indication that the Florida Legislature is serious about working toward fully repealing this burdensome tax,” Bill Herrle, executive director of the National Federation of Independent Business-Florida, said in a prepared statement.

Scott had asked for the lease tax to be dropped to 4.5 percent.

“The most significant steps are often the first ones we take on an issue, and this cut opens the door for future reductions of this burdensome tax,” Maria Wells, Florida Realtors president, said in a release.

The delayed Jan. 1 start to the feminine-hygiene and commercial-lease tax cuts is what helps increase the tax-cut package to $180 million when stretched over two years.

The package also includes several other smaller tax breaks.

by Jim Turner, The News Service of Florida

Comments

One Response to “Scott Signs Off On Package Of Tax Breaks”

  1. jay on May 26th, 2017 5:12 am

    I say take the school supply tax reinstate it, use it to help pay for all the needs of students and then cut some taxes on the ones that never had kids , From what I have seen coming out of Florida schools and Alabama’s someone’s ripping off us tax payers

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