Governor Ron DeSantis recently signed House Bill 7071, the biggest tax relief bill in the history of Florida. The legislation includes permanent tax breaks, sales tax exemptions, corporate income tax credit expansions, and ad valorem tax and exemption provisions. The tax breaks will affect consumers in areas such as fuel, diapers, clothing, and disaster supplies. Families who have trouble affording these essentials will benefit from these tax breaks.
The new bill combines several recent legislation for Florida tax relief. It contains a third tax holiday, new tax credits, and exemptions for low-income Floridians. The measure was crafted by the House Ways & Means Committee. It was approved by the Senate and House by a 117-1 vote, sending it to Gov. Ron DeSantis’ desk for his signature. One dissenting vote came from Rep. Omari Hardy.
The new tax bill also includes a back-to-school shopping holiday, one of the longest-running tax-free events in Florida. It also includes a one-year break for energy-efficient appliances and windows, and a two-year break for the purchase of new children’s books. The legislation also includes a Fuel Tax Holiday, which will save Florida $200 million and cut gas prices by 25 cents a gallon.
Sales tax holidays are not a panacea for an upside-down tax code. Tax breaks are temporary band-aids and are not a sustainable solution to the problem. State budgets are tight, and policymakers must make up for lost revenue by cutting services or raising taxes. While sales tax holidays can provide some relief, they do not fix Florida’s deep-rooted inequities. Therefore, the Working Floridians Tax Rebate is an alternative.