DeSantis signs largest tax cut in Florida history, saving taxpayers more than $1.2 billion

Gov. Ron DeSantis on Friday signed the largest tax relief bill in Florida history, delivering $1.2 billion in savings to Floridians.

DeSantis signed HB 7071 into law, which includes permanent tax relief through a range of sales tax exemptions, corporate income tax credit expansions, and ad valorem tax and exemption provisions. They are expected to generate an additional $190 million in tax savings over two years and $140 million annually thereafter.

The new law also creates and expands 10 sales tax holidays, some of which go through 2023 and 2024.

“Florida’s economy has consistently outpaced the nation, but we are still fighting against inflationary policies imposed on us by the Biden administration,” Gov. DeSantis said. “In Florida, we are going to support our residents and help them afford the goods that they need. Florida has been fiscally responsible, so we are in a good position to provide meaningful relief for families, right now.”

“The largest middle-class tax relief package in the history of the state,” was needed, Speaker Chris Sprowls said, because of “reckless federal spending [that] sent inflation rates spiraling higher than we’ve seen in generations.” Worsening economic conditions are impacting Floridians, he said, and paying less or no state taxes on some items should help.

“From tools to diapers to books for summer reading, this billion-dollar tax package includes something for every Floridian,” he said.

“Florida cannot independently fix or outrun all of the problems leading to the cost increases that are wreaking havoc on families, especially our most vulnerable,” Senate President Wilton Simpson said. “However, we are working to ease the pain with broad-based sales tax relief and a month-long gas tax holiday.”

The new law “supports growing families, Floridians looking to prepare their homes for severe weather, and the blue-collar working men and women of our state who are trying their best to get by amid record-high gas prices and inflation that many of us have not seen in our lifetime,” he said. “We are increasing the length of sales tax holidays for hurricane season and back-to-school, and also creating new short-term and long-term sales tax relief on key items needed by families.”

All of the sales tax holidays begin this year; some extend into 2023 and 2024.

Four sales tax holidays relate to children’s expenses:

Children’s Books Sales Tax Holiday: May 14 to Aug. 14, 2022Two-year Diapers Sales Tax Holiday: July 1, 2022 to June 30, 2023Two-year Baby and Toddlers’ Clothes/Shoes Sales Tax Holiday: July 1, 2022 to June 30, 2023Back to School Sales Tax Holiday: July 25 to Aug. 7, 2022

Four sales tax holidays relate to home improvements and weather preparedness:

Disaster Preparedness Sales Tax Holiday: May 28 to June 10, 2022Two-year Weather Preparedness Tax Holiday: July 1, 2022 to June 30, 2024One-year Energy Star Appliances Sales Tax Holiday: July 1, 2022 to June 30, 2023.Tool-Time Sales Tax Holiday: Sept. 3-9, 2022

Other sales tax holidays relate to events and recreational activity:

7-day Freedom Week Sale Tax Holiday: July 1-7, 2022Fuel Tax Holiday: October 1-31, 2022

Florida Department of Revenue has published a list and a printable calendar of all the sales tax holidays and exemption periods.