Tallahassee, Fla.-The Florida House Finance and Tax Subcommittee today passed PCB FTSC 14-05 relating to Economic Development as part of the Legislature’s Work Plan 2014 initiative to cut taxes and fees by $500 million. The bill provides a broad range of tax cuts and spending aimed at providing savings to Floridians and encouraging economic development in the state.
“This session, the House is committed to providing Floridians with the largest tax and fee cut in over a decade,” said State Representative Ritch Workman (R-Melbourne), Chair of the House Finance and Tax Subcommittee and sponsor of the bill. “This bill, along with the vehicle registration fee cuts passed by the Legislature last week, will put more money back in the pockets of hard-working Floridians and help our economy continue to flourish.”
PCB FTSC 14-05 includes:
* Four temporary tax holiday periods during which sales of certain goods will be exempt from the sales tax. These include:
o Three days in August for clothes and shoes priced at $100 or less, school supplies priced at $15 or less, and the first $750 of price on computers and certain accessories.
o Twelve days in June for certain hurricane preparedness supplies.
o Three days in September for the first $1,500 of price of certain energy and water efficient appliances.
o Seven days in September for physical fitness facility memberships.
* Permanent sales tax exemptions for child restraint systems and booster seats for use in motor vehicles and for bicycle helmets marketed for use by youth.
* An increase in the exemption for corporate income tax from the first $50,000 of income to the first $75,000 of income for each corporate income taxpayer.
* Creation of the Qualified Television Loan fund with the Department of Economic Opportunity, funded with $20 million in nonrecurring General Revenue, to encourage the production of television programs in Florida by assisting television production companies to acquire financing.
* Addition of cement mixing drums to an existing temporary sales tax exemption for manufacturing machinery and equipment, which will expire in 2017.
* Expansion from $178.8 million to $227.55 million of the credits available under the New Markets Tax Credit program, which directs investment into low income communities.
* A one year, $14 million extension of the sunset date of the Community Contributions Tax Credit program.
* Modernization of the statutory definition of “prepaid calling arrangement” to clarify that certain prepaid mobile communications services are subject to state and local sales taxes instead of state and local communications services taxes.
* Redirection of sales tax collections on sales of electricity to the Gross Receipts Tax on utilities, thereby increasing revenues for public education capital outlay. The current 7% sales tax rate on electricity purchases by most businesses would be reduced to 4%, and the gross receipts tax on electricity would be increased by like amount.
* Annual redirection of $100 million in sales tax revenue to the State Transportation Trust Fund to be used for statewide strategic and regionally significant projects.
In January, House Speaker Will Weatherford and Senate President Don Gaetz announced Work Plan 2014, which included a $500 million tax cut as a priority. The House and Senate have already passed CS/SB 156, which will provide an estimated $395 million annually in tax relief to Floridians by reducing the taxes, fees, and surcharges for vehicle registration. To read more about Work Plan 2014, please visit the Florida House of Representatives online<http://www.myfloridahouse.gov/contentViewer.aspx?Category=WebSite&File=work_plan_florida.htm>.