Record $2.7 billion of tax relief could save a family
of four as much as $1,000 over the course of a year.
Governor Ron DeSantis today signed the largest tax relief plan in Florida’s history, providing Florida families with $2.7 billion in tax relief during the 2023–2024 fiscal year. The tax relief package includes a permanent exemption for baby and toddler necessities such as strollers, cribs, diapers, and baby wipes. Additionally, the tax relief package includes two back-to-school sales tax holidays lasting 14 days each, two disaster preparedness sales tax holidays lasting 14 days each, and a freedom summer sales tax holiday on recreational items and children’s toys that will last from Memorial Day to Labor Day. More on today’s announcement can be found here.
“Because of President Biden’s disastrous economic policies, Florida families are feeling the pressure of inflation on their wallets,” said Governor Ron DeSantis. “But in Florida, we are ensuring that our state’s economic success gets passed on to the people that made it possible. I will continue to push smart fiscal policy that will allow Florida families to keep more of their hard-earned money in their pockets. Stronger families make a stronger Florida.”
Permanent sales tax exemptions included in the tax relief package will save Florida families nearly $234 million. Those exemptions are targeted to cover baby and toddler needs like cribs, playpens, strollers, child safety products, diapers, baby wipes, bottles, and clothing and shoes for children under age 5. Other items permanently exempt from sales tax will include oral hygiene products like toothbrushes and toothpaste and firearm safety devices.
- Back-to-School sales tax holidays will take place July 24 – August 6, 2023, and January 1 – January 14, 2024.
- Disaster Preparedness sales tax holidays will take place May 27 – June 9, 2023, and August 26 – September 8, 2023.
- The Freedom Summer sales tax holiday lasts from Memorial Day through Labor Day of this year.
- The Tools and Equipment sales tax holiday will take place from September 2 – September 8, 2023.
Additionally, the tax relief package includes a one-year sales tax exemption on gas stoves and Energy Star appliances. There will also be a reduction in the tax rate on business rent from the current 5.5% down to 4.5% effective December 31, 2023, to help small businesses keep more of their profits.
The tax relief package adds to the savings the Governor already enacted earlier this year. In December, the Governor signed the Toll Relief program into law, which began in January. The program provides frequent commuters with 35 or more toll transactions per month with a 50% credit to their account. This program is expected to save the average commuter nearly $480 over the year and save Florida families a total of $500 million.
Additionally, the Governor signed the Live Local Act earlier this year, to help Floridians live locally in the communities that they work in and incentivize new housing development. This legislation will provide more than $854 million in tax incentives and sales tax refunds on building materials to help Florida families access more housing in the communities they work in. In total, this family-focused tax relief could save a family of four as much $1,000 over the course of a year.