Florida Budget Includes Multiple Sales Tax Impacts
Americo Rodriguez, MST | April 25, 2022
Florida’s legislature ended its session in March by sending Governor DeSantis a budget that includes multiple sales tax impacts. Florida, flushed with cash from federal aid and tax collections that exceeded estimates, sent the governor a budget with $43.7 billion in general revenue spending.
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Businesses registered to collect sales tax in Florida should make note of the following holidays and exemptions:
Four sales tax holidays:
- A 14-day “back-to-school” sales tax holiday from 7/25/2022 through 8/7/2022 for certain clothing, school supplies, learning aids, puzzles, and personal computers.
- Provides a 14-day “disaster preparedness” sales tax holiday from May 28, 2022, through June 10, 2022, for specified disaster preparedness items.
- A 7-day “recreational” sales tax holiday (“Freedom Week”) from July 1, 2022, through July 7, 2022, for specified admissions, boating and water activity supplies, camping supplies, fishing supplies, general outdoor supplies, residential pool supplies, and sporting equipment.
- A 7-day “tools” sales tax holiday from September 3, 2022, through September 9, 2022, for tools and equipment needed in skilled trades.
Temporary Sales Tax Exemptions
- A two-year sales tax exemption from July 1, 2022, through June 30, 2024, for impact-resistant windows, doors, and garage doors.
- A one-year sales tax exemption from July 1, 2022, through June 30, 2023, for children’s clothing, shoes, and diapers.
- A one-year sales tax exemption from July 1, 2022, through June 30, 2023, for certain ENERGY STAR certified refrigerators, refrigerator/freezer combinations, water heaters, and clothing washers and dryers.
- A three-month sales tax exemption from May 14, 2022, through August 14, 2022, for children’s books.
Sales Tax Rate Cuts
- Reduces the state sales tax on the sale of a new mobile home from 6 percent to 3 percent.
Permanent Sales Tax Exemptions
- Provides a sales tax exemption for admissions to Formula One Grand Prix races, FIFA World Cup matches, and Daytona 500 races.
- Provides a sales tax exemption for equipment used in the production of green hydrogen.
- Provides a sales tax exemption for the purchase of farm trailers and certain fencing.
Non-Sales Tax Items
- Motor Fuel Tax holiday for the month of October 2022.
- Adoption of Internal Revenue Code in effect on January 1, 2022.
- Increases the widows, widowers, blind, or totally and permanently disabled property tax exemption from $500 to $5,000.
- Provides an alternative assessment methodology for land used in the production of aquaculture products.
- Provides property tax relief for homestead property rendered uninhabitable for 30 days or more due to a catastrophic event.
If you are registered to collect sales tax in Florida and have questions about the items included in the 2022-23 FY budget, contact the trusted advisors on REDW’s State and Local Tax team. We welcome your questions.