HB 5601 – relating to Economic Development
On Thursday, May 1st, HB 5601, relating to Economic Development, by House Finance & Tax Subcommittee, Senator Dorothy Hukill (R-Port Orange), and Representative Ritch Workman (R-Melbourne) was rolled to third reading in the Senate. The bill will be voted on by the Senate tomorrow, May 2nd.
Senator Joe Negron (R-Palm City) explained the bill is the session tax package to complete the $500 million tax cut. This bill relates to the $105 million remaining after the $395 million vehicle fees.
Senator Joe Negron (R-Palm City) said the communication services tax cut is too large at over $60 million and result in actual customer savings so low it’s not a significant reduction. Therefore it is not a viable option and the adopted amendment removes it and adds the following:
- 3 day back to school sales tax holiday;
- 9 day hurricane tax holiday;
- 3 day tax exemption on Energy Star and WaterSense products;
- 3 year exemption on cement mixing drums;
- child booster car seats and bicycle helmet;,
- pet food - therapeutic only;
- college meal plans made tax exempt;
- new market tax credit;
- community contribution tax credit;
- prepaid cell phone subject to sales tax not CST (communication services tax);
- tax credit on uncollected purchases paid by credit card;
- bail bond - lowering effective premium tax rate;
- title insurance - lowering effective premium tax rate;
- cigarette tax change in distribution benefiting Moffitt Cancer Center;
- Public Education Capital Outlay - swap sales tax or general revenue for GRT which goes to PECO;
- Department Of Revenue cost appropriations;
- local business tax ease for reducing rate by local government;
- tourist development tax information sharing clarification.
After temporally postponing the bill, they came back and took up the bill and Sen. Negron offered the substitute amendment to the Senator Dorothy Hukill (R-Port Orange) strike all, which includes the above tax cuts.
AIF supports the bill because it reduces taxes for individuals and businesses and therefore stimulates the Florida economy.
