TALLAHASSEE, Fla. — Florida taxpayers are expected to save $1.3 billion in the next fiscal year under the tax package passed by state lawmakers this week.
It was the tax package that was largely responsible for lawmakers going into double overtime to bring this year’s session in for a landing.
Instead of a permanent across-the-board sales or property tax reduction, Floridians are getting something quite different in the final product.
The bulk of the $1.3 billion in savings comes in the form of the elimination of the business rent tax, which totals $905 million.
There’s also permanent year-round sales tax cuts on certain hurricane preparedness items totaling $114 million, a permanent one-month back-to-school sales tax holiday in August that will deliver $168 million of savings, and a one-time outdoor sales tax holiday that’s expected to yield $35 million of savings.
State Representative Dean Black (R-Yulee) helped lead the charge negotiating the tax bill.
“We wanted to make real lasting changes in the size and scope of government by making permanent tax reductions, and we did that,” said Black.
But others, like State Representative Angie Nixon (D-Jacksonville), have argued the bill fails to deliver the family-focused cuts legislative leaders had promised when the session began.
“No cuts for sales tax, not addressing the property tax issue,” said Nixon.
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Dominic Calabro, President of Florida TaxWatch, sees the tax bill as a step in the right direction as it moves away from one-off sales tax holidays that often change from year to year, in favor of more predictable savings.
He also sees the elimination of the business rent tax as a major victory.
“Because it’s going to allow businesses to put that savings ultimately into hiring staff or paying some of the staff a little bit better salaries and benefits, instead of giving it to the tax man,” said Calabro.
But Nixon argued the legislature prioritized gimmicks over meaningful tax reform.
“They are allowing people to potentially go out and get a ton of bullets and a ton of guns and get NASCAR tickets, which just does not positively impact working families across our state,” said Nixon.
But Black contended the bill represents a compromise, and lawmakers have committed to delve deeper into things like property tax reform in next year’s session.
“And all in all, I think we achieved a really good balance, and again, it was a really good debate to be having,” said Black. ”We were arguing about how to reduce taxes, whereas in other states, they argue about how to increase them.”
While lawmakers didn’t act on property tax reform directly this year, they did approve a state-led study into the issue.
The findings will help guide lawmakers’ decision-making on how to best move forward on the issue next year.
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