Florida Governor Ron DeSantis announced his budget proposal for the 2024-2025 fiscal year, the “Focus on Florida’s Future”. The proposed budget recommends more than $1B in tax relief for both taxpayers and businesses.
“Florida has experienced record success over the last five years, ranking #1 in […] entrepreneurship and new business formations, with 2.7 million new businesses formed since 2019.”
tax relief
A highlight of the proposed budget is an increase of the sales tax collection allowance given for timely filing and payment of sales tax returns. This allowance, or discount, is currently 2.5% of the sales tax collected and is capped at $30. However, the budget proposal would allow a discount of the first $60 of the amount of tax otherwise due. This would be a permanent tax relief measure designed specifically to save small businesses $165M in sales tax.
The proposed budget also includes a credit against corporate income tax for businesses employing persons with “unique abilities.” The credit, equal to $1,000 per person, would receive $5M in annual funding. The budget does not identify the qualification requirements for receiving the credit.
sales tax holidays & exemptions
Similar to efforts put forth by the Gov. DeSantis in 2023, the 2024-2025 proposed budget includes several popular sales tax holidays. If approved, there would be two Back-to-School sales tax holidays on school supplies, clothing and computers, with a goal of saving taxpayers $169M.
Further, the budget allows for two Disaster Preparedness sales tax holidays, a three-month Freedom Summer sales tax holiday on outdoor recreation items and a week-long Tool Time sales tax holiday on tools needed by skilled workers.
Additionally, the Gov. DeSantis proposed a one-year exemption on taxes, fees and assessments related to Homeowner’s Insurance Policies, a permanent exemption on Flood Insurance Policies, and a permanent exemption on OTC pet medications.
takeaway for your business
Florida's legislative session is scheduled to commence on January 9th, marking the beginning of discussions and debates regarding the proposed budget changes. The state's fiscal year is set to start on July 1st, aligning with the potential implementation of any budget modifications.
Gov. DeSantis' proposed budget sets forth substantial alterations to Florida's tax policies, aiming to provide benefits to both businesses and residents. The upcoming legislative session will play an important role in determining the fate of these proposed changes, shaping Florida's fiscal landscape for the upcoming year.
If you conduct business in Florida, you’ll want to know more about how these changes might affect you and how to take advantage of tax saving opportunities in the state. Follow along for updates or book a complimentary consultation to start today.