Today, Governor Ron DeSantis was joined by Senate President Kathleen Passidomo and House Speaker Paul Renner to highlight their intent to pass the largest tax relief proposal in Florida history to save Florida families a historic $2 billion during the 2023–2024 fiscal year. The proposed tax relief plan is a part of the Framework for Freedom Budget proposal announced by the Governor last week and includes a one year sales tax exemption on children’s items like books and toys; a permanent sales tax exemption on baby and toddler necessities like clothing, cribs, and strollers; and an expansion of the annual Back to School tax holiday. The average Florida family could save up to $1,000 a year under this plan.
“Inflation continues to burden Florida families and we must fight back against rising costs by cutting the sales tax on necessary items,” said Governor Ron DeSantis. “We are able to provide this record $2 billion in tax relief because of our smart fiscal policies and strong reserves. It is important that we pass those savings on to Florida families so they can keep more of their hard-earned money in their own pockets.”
“While under the leadership of Governor DeSantis Florida’s economy is booming, the pain of inflation due to the disastrous economic policies on the national level is very real for many Florida families,” said Senate President Kathleen Passidomo. “Florida cannot independently fix all of the problems created by the federal government, but we can and we will do our part to support Florida families by passing historic, broad-based tax cuts that help Floridians keep more of their hard-earned money.”
“Hard-working Floridians are tired of scraping by, having to do more with less because Washington politicians refuse to cut wasteful spending or curb inflationary policies,” said House Speaker Paul Renner. “Floridians can count on Governor DeSantis and their state legislators to balance our budget and strategically build up reserves. I look forward to working with the Governor, Senate President Passidomo, and our colleagues in the House and Senate to deliver meaningful tax relief for families when they need it most.”
Last week, the Governor announced the Framework for Freedom Budget, which is his proposed budget for Fiscal Year 2023–2024. The Framework for Freedom Budget totals $114.8 billion, with total reserves exceeding $15 billion. The Framework for Freedom Budget builds on Florida’s successes as the state continues to outpace the nation in building a robust economy; safeguarding students’, parents’, and teachers’ rights; restoring our environment; and maintaining healthy reserves to respond to natural disasters.
The tax relief proposal includes a “Freedom Summer” tax holiday which will run from Memorial Day through September 4. This tax holiday is estimated to save Florida families more than $224 million. Items included are:
· Admission to events and performances such as concerts, movies, and sporting events
· Admission to state parks and museums
· Boating and water activity supplies
· Camping supplies
· Fishing supplies
· Sports equipment
· Residential pool supplies
The proposal supports homeowners by providing a permanent sales tax exemption on gas stoves which is estimated to save Florida homeowners $7 million. Additionally, the plan proposes a two year extension of the sales tax exemption on natural gas fuel, estimated to save Floridians $1.2 million, as well as a one year sales tax holiday on Energy Star appliances.
Savings for small businesses are also included in the plan. Currently, businesses and vendors that choose to e-file taxes with the Department of Revenue can save up to $30. The Framework for Freedom tax relief plan proposes to double this savings to $60. This is estimated to save Florida businesses $141.4 million.
These tax relief proposals are in addition to the Toll Relief Program signed by the Governor
in December following the special session. This program began on January 1, 2023, and provides frequent commuters with 35 or more toll transactions per month with a 50% credit to their account. This program will run through the end of the year and is expected to save the average commuter nearly $480 over the year.