SB 7062 - Relating to Taxation

On Tuesday, April 18, SB 7062, a proposed committee bill by the Senate Finance & Tax Committee was heard for the first time and was reported favorably with 9 yeas and 0 nays. AIF stood in support of this legislation.

SB 7062 is the Senate’s tax package that has many pieces that are friendly to Florida businesses. SB 7062 draws inspiration from several bills relating to taxation that have been moving throughout the process this year as well as incorporating many consumer-friendly items contained in Governor DeSantis’ tax cut proposal.

This bill creates several sales tax holidays for various products and events as well as permanent exemptions for items such as baby and toddler products, diapers and incontinence products, oral hygiene products and firearm safety devices.

SB 7062 incorporates provisions from other bills that AIF has already been supporting this session:

• SB 844/HB 867 - Providing a sales tax exemption for machinery and equipment used in the production of renewable natural gas. (This is also included in the House tax package.)
• SB 322/HB 529 - Extending sales tax exemptions on natural gas fuel taxes until January 1st, 2026, rather than the current deadline in 2024. (This is also included in the House tax package.)
• HB 1153/SB 1432 - Providing that no local communications services tax rates may be increased until 2026. (This is also included in the House tax package.
• HB 1343/SB 1184 - Prohibiting local governments from applying special assessments on agricultural lands (This was NOT included in the House tax package.)

HB 7063 is the House tax package and was passed out of the House Ways and Means Committee last Wednesday.

Among other things, SB 7062 offers similar “sales tax holidays” with fairly minor differences related to “back to school”; “disaster preparedness”; “Freedom Summer”; “Tools used by skilled trade workers”; and “ENERGY STAR appliances”. There are some differences in each category regarding types of sales that are exempted along with various value limitations. Both bills include property tax relief for residential and commercial property owners in Southwest Florida impacted by Hurricane Ian.

One item in particular that was included in the House bill but not the Senate bill was the provision that would lower the business rent tax rate from 5.5% to 4.5%. AIF will be working to support the inclusion of this provision as the bills are negotiated between the chambers.

SB 7062 has been referred to Senate Appropriations and is expected to be heard early next week.

The House companion, HB 7063, has been placed on the House Calendar.

AIF supports legislative efforts to provide tax relief on all businesses operating in Florida. These incentives drive future investment and create a well-rounded, vibrant economy that creates jobs and lowers costs for consumers.