Florida will reduce the tax pay on business pay on rent, have two, three-day sales tax holidays, and eliminate the so-called tampon tax under a $180 million tax cut package signed by Gov. Rick Scott.
Scott signed the measure (HB 7109) during an event at 3C Interactive in Boca Raton on Thursday. While the tax cut package is significantly smaller than the $618 million tax cut plan Scott proposed in January, the Naples Republican said he was proud to sign legislation that continues to cut “taxes for Florida families and businesses.”
“Since I’ve been in office, I’ve fought to cut taxes and reduce burdensome regulations to help boost Florida’s economy and ensure our children and grandchildren have the opportunity to succeed in our great state,” said Scott in a prepared statement. “Every time we cut taxes, we are encouraging businesses of all sizes to create opportunities for families across the state and more money is put back in taxpayers’ pockets.”
Approved on the final day of the 2017 Legislative Session, the tax cut package reduces the tax on commercial leases by 0.2 percent in 2018. Florida is the only state that has a tax on commercial leases, and the reduction is expected to save Florida businesses $61 million a year.
“Cutting this business tax will help the small, local businesses in our communities that lease property,” said Sen. Anitere Flores, who carried a bill (SB 378) in the Senate to lower the business rent tax. “This legislation is a great step towards reducing and hopefully one day eliminating this burdensome tax on business.”
The Florida Retail Federation, a proponent of reducing the tax on business leases, said it was pleased the governor decided to sign the tax cut package, saying it would allow business owners to keep more of their money.
“We are grateful to Governor Scott for signing these important tax measures that will allow retailers, consumers, and other businesses to see their money stretch farther and help grow this economy,” said R. Scott Shalley, the president and CEO of the Florida Retail Federation in a statement. “The .2 percent reduction in the business rent tax will allow small businesses to keep more of their own revenue, allowing them to reinvest those funds and create jobs.”
The tax cut package also includes a three-day, disaster preparedness sales tax holiday and a three-day, back-to-school sales tax holiday, which runs from Aug. 4 through Aug. 6.
The 2017 Disaster Preparedness Sales Tax Holiday runs from June 2 through June 4. During the three-day window, items like flashlights, batteries, coolers, and portable generators are tax-exempt. The sales tax holiday is estimated to save Floridians $4.5 million.
“The 2017 Disaster Preparedness Sales Tax Holiday is an opportunity for Floridians to purchase supplies in preparation for a variety of storm-related activity,” said Leon Biegalski, executive director of the Florida Department of Revenue, in a statement. “From powerful thunderstorms and tornados, to tropical storms and hurricanes, Florida experiences a range of potentially dangerous weather throughout summer and fall. We encourage Floridians to participate in this sales tax holiday as being proactive is in the best interest of their safety.”
Scott’s decision to sign the bill also means Florida will join 13 other states and the District of Columbia in exempting taxes on the sale of feminine hygiene products or have enacted laws to exempt these products in the future.
Advocates for the change have said these items are a necessity for women, and should be considered a “common household remedy.” In Florida, the push to make feminine hygiene products tax exempt was pushed by Rep. Katie Edwards and Sen. Kathleen Passidomo.
“This common sense legislation will result in a tax savings for women all over the state who purchase these necessary products,” said Passidomo in a statement.
The Associated Press contributed to this report, reprinted with permission.