Gov. Ron DeSantis signed a $1.07 billion Florida sales tax relief bill into law on May 7. The legislation defines 2024 sales tax holidays and provides several tax cuts for businesses and families, including a one-year property tax exemption on home insurance premiums.
In a news release, DeSantis referred to the tax cuts as necessary, saying they will provide necessary tax relief for Floridians while the "D.C. political class shows no signs of reversing course on the inflationary policies of the federal government.”
Here's what tax cuts Florida residents can expect — and when they take effect.
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DeSantis' home insurance tax exemption
Florida typically imposes a 1.75% tax on property insurance policies, but eligible homeowners will soon enjoy an entire year of tax-exempt home and flood insurance premiums.
The exemption only applies to residential policies with effective dates between Oct. 1, 2024 and Sept. 30, 2024. During this time, lawmakers expect Floridians to save more than $500 million.
2024 Florida sales tax holidays
Florida will run a two-week Back-to-School Sales Tax Holiday from July 29, 2024, through August 11, 2024. Like last year, the 2024 tax holiday will make several items, including clothing, computers, backpacks, and school supplies tax-exempt.
While price limits apply, they are more generous than in many states. For example, eligible computer and computer software products can cost up to $1,500 and remain eligible for the exemption.
DeSantis also defined dates for three other Florida sales tax holidays this year:
- Freedom Month, which makes the purchase of certain recreational tickets, passes and admissions tax-exempt, will run from July 1 to July 31, 2024. (Admission to the events can be used from July 1 through the end of 2024.)
- The Skilled Worker Sales Tax Holiday, which makes certain tools, equipment and safety clothing tax-exempt, will run from Sept. 1 through Sept. 7, 2024.
- Florida will have two Disaster Preparedness Sales Tax Holidays this year (June 1 to June 14, 2024 and Aug. 24 –September 6, 2024).
The Florida Disaster Sales Tax Holidays exempt items, such as generators and batteries, from sales tax to help Floridians prepare for natural disasters. But the tax holiday also exempts household items, such as toilet paper and trash bags.
And even items to help families safely evacuate pets are tax-exempt. These include pet food, cat litter pans, and even hamster substrate.
Florida tax cuts
DeSantis' $1.07 billion tax relief package also includes tax cuts for business, which may indirectly benefit families. For example, the bill creates a tax credit for companies who operate or support a childcare programs for their employees. This could result in more employers offering childcare assistance to workers.
Also included in the bill is a new corporate income tax credit for businesses that hire persons with disabilities and an increase to the cap for the Strong Families Tax Credit, which incentivizes companies to make charitable contributions to child welfare organizations.
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