HB 7063 - Relating to Taxation

On Thursday, April 27, HB 7063, a proposed committee bill by the House Ways and Means Committee was introduced onto the House Floor and was reported favorably with 114 yeas and 0 nays.

HB 7063 is a comprehensive tax overall that has a multifaceted approach that is friendly to Florida businesses. HB 7063 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 and clothes, adult incontinence products, oral hygiene products and certain agricultural fencing. It also will reduce the business rent tax from 5.5% to 4.5%.

HB 7063 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.
• SB 322/HB 529- Extending sales tax exemptions on natural gas fuel taxes until January 1st, 2026, rather than the current deadline in 2024.
• HB 1153/SB 1432- Providing a decrease in the tax rate on the retail sale of communication services and keeps the decreased rate until 2026.

HB 7063 has no further action in the House. The Senate counterpart, SB 7062, passed the Senate Appropriations Committee on Tuesday, April 25. Although similar, the House and Senate versions are slightly different. SB 7062 is expected to be heard on the Senate Floor next week. The Senate sponsor, Senator Blaise Ingoglia (R-Spring Hill) indicated during the Appropriations Committee that negotiations are underway to reshape the Senate bill to a version more similar to the House bill.

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.

SB 1718- Relating to Unlawful Immigration

On Thursday, April 27, HB 1718 by Senator Blaise Ingoglia (R-Spring Hill) was introduced on the Senate Floor.

HB 1718 requires any employer with over 25 employees to use the electronic (E-Verify) system to validate if an employee is lawfully present in the United States.

The E-Verify system continues to be a pilot program at the federal level and has been known to be unreliable and inconsistent. AIF believes the current I-9 process for verification of employment eligibility is sufficient and an E-Verify mandate is unnecessary.

The penalties for non-compliance are also significant and should be adjusted to be more proportionate. This law would take effect on July 1, 2023.

The Senate will consider SB 1718 for final passage on Friday, April 28. The House companion, HB 1617, was reported favorably by the House Commerce Committee on Monday, April 24. HB 1617 awaits further consideration on the House Floor.

AIF opposes legislation that creates undue, burdensome regulations on Florida employers that causes a negative economic reaction on businesses as small as 25 employees. E-Verify is costly to operate and serves no purpose as the Federally mandated I-9 system is just as effective.