Tax Changes Over Time

Tax Reductions—State

SALES TAX

Back to School Sales Tax Holiday —Created a 3-day period when sales of clothing and books (less than $50/item) and school supplies (less than $10/item) would be tax-free. ($4.3 million local)

Manufacturing and Spaceport Incentive —Allowed refund of sales taxes on eligible manufacturing equipment for two years. $43.0 million over two years (local $4.9 million)

Boats —Limited sales tax due on the sale of a boat to $18,000. $1.7 million recurring ($0.2 million local)

Aircraft —Various changes to the sales taxation of aircraft sales and fractional aircraft. $0.4 million recurring

Sales Tax on Rent —Created new exemption for persons providing telecommunications, data management, or internet services at a convention hall, civic center, or meeting space at a public lodging establishment. $1.4 million recurring ($0.2 million local)

Exemption for Non-Profit Sponsored Events —Re-enacted a repealed exemption for admissions to an event sponsored by a governmental entity, sports authority, or sports commission when the event is held in a convention hall, exhibition hall, auditorium, stadium theater, arena, civic center, performing arts center; or publicly-owned recreational facility. $0.2 million recurring

All-Star Games —Exempted admissions to NHL and NBA all-star games from the sales tax and extended the exemption to the MLB Home Run Derby, the NFL Pro Bowl, and to any events surrounding the all-star games for either the NBA or NHL. The impact of a NBA all-star game is estimated at $0.7 million, $0.3 million from an NHL game. No game was scheduled at time of passage. Indeterminate

SALES/CORPORATE INCOME TAXES

Film & Entertainment Tax Credit —Increased cap ($242 million over 5 years) ($22.1 million local)

Catalyst Sites —Provided that catalyst sites not located in a rural enterprise zone shall be designated as a rural enterprise zone. Insignificant recurring

Jobs for Unemployed Tax Credit —Provided a one-time, $1,000 CIT credit for each new employee that was unemployed for at least 30 days (two-year program). $10.0 million over two years

LICENSES TAXES

Shoreline Fishing License —Eliminated the $7.50 license created in prior year. $1.2 million ($0.1 million local)

Wrecker License Tax —Expanded the definition of wreckers that can qualify for a much lower license tax. $0.3 million recurring

ALCOHOLIC BEVERAGE/SALES TAXES

Florida Tax Credit Scholarship —Program expanded, new tax sources added (sales, beverage, and severance taxes), and total annual cap was increased $118 million to $140 million in FY 2010-11, then by 25% each year thereafter. It was estimated that 80% of the impact would be on beverage taxes, 20% on sales taxes. $31.0 million first year, eventually growing to $228.8 million recurring.

OTHER TAXES

Slot Machine Tax Reduction —Reduce the tax rate to 35%. Impact was expected to lessen over time, with total revenue loss of $47.9 million over three years. $25 million in first year, $0 after three years

Slot Machine License Tax Reduction —Each of the 6 licensed facilities would pay $.5 million less in license taxes in 2010-11 and $1.0 million less in 2011-12. $6.0 million recurring

Motor Fuel Tax —Exempted biodiesel fuel of 1,000 gallons or less annually produced by a secondary school for the sole use of the school, by its employees, or its students. The exemption applies to both the imposition of the tax and the registration requirements. Insignificant recurring

Unemployment Compensation —Provided short-term relief by delaying large UC tax increases—$556.2 million in FY 10, $797.8 million in FY 11 and $161.8 million in FY 12. (savings net of increased interest assessments). The savings will be at least mostly offset by higher taxes in later years.

Tax Reductions—Local

Horticulture —Provided a new assessment methodology for structures or improvements used for horticultural production that are for the purpose of frost and freeze protection and consistent with Best Management Practices adopted by the Department of Agriculture and Consumer Services. $0.1 million recurring local

Back Taxes —Created an exception from the assessment of back taxes on property that was not assessed by a property appraiser. Could have a significant impact. Indeterminate recurring local

Transfer of Property —Made several changes to laws on the ad valorem tax treatment of property transfers. Indeterminate recurring local

Defective Building Materials —Required property appraisers to adjust the assessed value of certain properties affected by defective building materials or construction techniques. Specified certain remediation or repair as not being a change or improvement to property. Prohibited consideration of homestead property as abandoned under certain circumstances. Indeterminate recurring local

Ag Land for Sale —Clarified that land that is classified as agricultural retains that classification when offered for sale. Indeterminate recurring local

Fee Reductions—State

Interstate Logo Sign Fees —Reduced the maximum charge from $5,000 to $3,500 for signs in an urban area and from $2,500 to $2,000 for signs outside an urban area. $0.5 million recurring

Home Inspection and Mold Service Business Fees —The application, renewal, and unlicensed activity fees for home inspection businesses and mold services businesses were eliminated. $0.2 million recurring

State Park Fees —Provided for a 25% discount on annual entrance passes for veterans and active duty members of the military. In addition, veterans who have service-connected disabilities and surviving spouses of those who have fallen in combat are entitled to receive lifetime family annual entrance passes at no charge. $0.1 million recurring

Timeshare Foreclosure Fees —Provided an alternative trustee foreclosure procedure for timeshare interests which means they are not subject to the fees. $0.1 million recurring

E991 Fees —Delayed the implementation date of the E911 prepaid wireless fee to July 1, 2013 (four years). Indeterminate

Inspection Fees —Eliminated food and safety inspection fees for group care homes and domestic violence centers that do not prepare and serve meals to residents or advertise food and drink to the public.
Insignificant recurring

Employee Leasing Companies —Provided an exemption from the change-of ownership application and associated fee when a controlling person of the employee leasing company or group maintains a controlling person license at the time the purchase or acquisition occurs. Insignificant recurring

Fee Reductions—Local

Agricultural Fees —Prohibited counties from imposing an assessment or fee for stormwater management on land classified as agricultural if the land has certain permits. Counties that had adopted a stormwater utility fee could continue to charge an assessment or fee if credits are provided. The exemption from local business taxes was expanded to “persons” (corporations, LLCs, etc), rather than just “natural persons,” engaged in the selling of agricultural products. Exempted tropical foliage dealers from the agricultural dealer fees. Provided that any nonresidential farm building or farm fence is exempt from the Florida Building Code and any county and municipal code or fee, except for provisions implementing local, state, or federal floodplain management regulations. (This bill was vetoed by the Governor but the Legislature overrode the veto the following year). $0.5 million recurring local for stormwater fee (other provisions are indeterminate recurring local)

Tuition Reductions

Public School Teachers —State universities and Florida colleges were authorized to waive tuition and fees for public school classroom teachers who are employed full-time by a school district. The waiver may be granted for up to six credit hours per term on a space-available basis in undergraduate courses related to special education, mathematics or science. Indeterminate recurring

New/Increased Taxes & Fees—State

Enterprise Zones —Excluded condominiums from sales tax refunds under the Enterprise Zone program. $18.2 million recurring ($5.0 million local)

Corporate Filing Fees (Tax) —Required imposition of late fee for late payment of supplemental corporate filing fee and application for reinstatement following administrative dissolution fee. $8.8 million recurring

Citrus Tax—Increased the tax (self-imposed by the industry) by 2 cents per box of fruit to help pay for citrus research. The bill increasing the tax was vetoed by the Governor but the Legislature overrode the veto in Special Session. $3.5 million recurring

Limerock Mitigation Fee —Increased the tax rate to 45 cents/ton on limerock and sand mined in the Miami Dade Lake Belt. $2.5 million recurring local

Severance Tax —Adjusted rate and the distribution of revenue. First year was a revenue loss, but it produced a recurring increase. $2.1 million recurring

New/Increased Taxes & Fees—Local

Local Option Transportation System Sales Surtax —Expanded the eligibility to include counties served by a regional transportation or transit authority. Eleven more counties became eligible to levy the 1% sales tax. Also expanded the allowed uses of the revenue. None of the newly eligible counties have levied the tax. If all counties levied the tax, the impact would be $230.8 million recurring. Indeterminate recurring local

Abandonment of Homestead Property —Provided that after the 3-year period, the expiration, lapse, nonrenewal, or revocation of a building permit issued to the property owner for such repairs or rebuilding also constitutes abandonment of the property as homestead. Indeterminate recurring local

Red Light Cameras —The Legislature allowed the use of traffic infraction detectors by both state and local governments. The fine for running a red light was set at $158. The law was enacted, in large part, to help balance the state budget. $80 of each infraction caught by state cameras and $45 from local cameras was dedicated to state general revenue. The fines would produce other state revenue as well. First year $56.6 million ($13.1 million local), rising to $209.6 million in three years

DOH Septic System Evaluation Program Fees —Required DOH to administer a statewide onsite sewage treatment and disposal system evaluation program and charge a fee. $15.6 million recurring

Building Safety Fees —Increased the building permit surcharge and instituted other fees related to building safety. $3.2 million recurring ($0.4 million local)

Crime Stoppers Fee —Provided that the $20 court cost fee for Crime Stoppers on all criminal convictions is also mandatory on criminal cases when adjudication is withheld. $2.1 million recurring

Tattoo Practitioners —Began the regulation of tattoo artists and establishments and instituted initial and renewal licensing fees—up to $250 for establishment, $150 for artists and $45 for temporary or guest artists. $0.3 million recurring

Appraisal Management Companies —Required these companies to register with DBPR and established an initial application fee not to exceed $150, and an initial and renewal registration fee not to exceed $150, payable biennially. $0.3 million recurring

Child Care Fees —Adjusted various fees. $0.1 million recurring

Public Safety Telecommunicators —Expanded the voluntary certification of government dispatchers to include all “911 public safety telecommunicators”, public or private. Certification was made mandatory. $0.1 million recurring

UC Employer Installment Fee —Allowed for UC taxes to paid in installments during FY2009-10 and FY 2010-11. $0.1 million (annually, two years)

Drivers Record Search —Increased the fee. Indeterminate recurring

Financial Regulation —Required DFS to license and supervise the activities of international trust company representative offices. An initial fee for establishing such an entity is set at $5,000, with an annual assessment of $2,000. Insignificant recurring

Cemetery and Funeral Regulation —Made numerous changes to the regulatory scheme and fees. Insignificant recurring

Tuition Increases

University Tuition and Fees —Gave the Board of Governors the authority to consider and approve flexible tuition policies requested by universities. Also authorized the Board to approve proposals from universities for new fees not specifically authorized and proposals to increase the current cap for an existing fee. Indeterminate recurring

University and College Fees—Allowed the aggregate sum of activity and service, health and athletic fees to increase each year at a rate of no more than five percent or the same increase as tuition, whichever is greater. Indeterminate recurring

Tax Reductions—State

SALES TAX

Back to School Sales Tax Holiday - 3-Day tax free sales of clothing (<$75) and school supplies (<$15). $31.2 million one-time ($5.7 million local)

CORPORATE INCOME TAX

Corporate Income Tax —increased exemption from $5,000 to $25,000. $29.1 million recurring

Single Sales Factor — Allowed companies that invest at least $250 million in qualified capital expenditures to choose to apportion income based on 100% sales. $7.5 million recurring

Research & Development CIT Credit —Created a new credit against CIT of 10 percent of the excess of the current year’s qualified research expenses over the average of the four prior years’ qualified research expenses. $9.0 million recurring

Capital Investment Tax Credit —For Bay, Escambia, Franklin, Gulf, Okaloosa, Santa Rosa, Walton and Wakulla counties (Horizon Oil Spill) the “high impact (industry) sector,” requirement was temporarily waived from July 1, 2011 to June 30, 2014. In addition, for investments of at least $100 million, the unused amount that was unable to be claimed due to insufficient tax liability was allowed to be claimed over an additional 10 years. This provision will have an indeterminate impact beginning in 2021. $4.4 million recurring (first provision)

Contaminated Site Rehabilitation Tax Credit —Increased the annual cap to $5 million. $3.0 million recurring

Corporate Tax Credits for Spaceflight Projects —Created CIT credits for a “space flight business” registered to do business in Florida and currently undertaking space flight project. $10.0 million a year for three years, beginning in FY 2015-16

Emergency Excise Tax Repeal —Repealed the emergency excise tax. A federal law change had effectively eliminated the tax- current collections were insignificant. Insignificant recurring

SALES/CORPORATE INCOME TAXES

Energy Economic Zones —Created tax credits (sales and CIT taxes) in these zones to encourage green economic development. $0.6 million recurring

Enterprise Zones —Authorized enterprise zones with a rural area of critical economic concern to apply to expand boundaries by up to 3 miles. Also, authorized three counties to expand their zones (sales and CIT). $0.6 million recurring

Film Production Tax Credit — Increased the annual cap (sales and CIT) for three years. $4 million ($0.4 million local) a year for three years

OTHER TAXES

Insurance Premium Tax —Exempt Prepaid limited health service organizations that provide services solely to Medicaid recipients under a contract with Medicaid from the annual insurance premium tax. $1.6 million recurring

Citrus Taxes —Established the maximum tax rate on grapefruit, tangerines, and fresh oranges at the rate in effect on May 1, 2011. The tax rate on oranges in processed form shall not exceed 25 cents per box, its current rate. The bill effectively prohibited tax rates from increasing from current levels regardless of production, though they could be reduced. Indeterminate recurring

Tax Reductions—Local

PROPERTY TAX

Water Management District Levies —Limited district levies. Legislature set each district’s allowed ad valorem revenue for FY 2011-12 and required the amount of the cap to remain unless legislature set a new one. This was repealed the next year (but law still provides that Legislature may set taxes) but ad valorem revenue has remained close to that level. $205.4 million local (at current millage rates)

Deployed Service Members —As authorized by the voters in 2010, the Legislature implemented an amendment granting a property tax exemption for deployed service members. $2.8 million recurring local

Disabled Vets —Legislature passed a proposed constitutional amendment (voter subsequently approved it in 2012) to expand the property discount for veterans who became disabled as the result of a combat injury to include those who were not Florida residents when they entered the military. $3.8 million recurring local

Economic Development Exemption —Expands eligibility for the local economic development exemption. Impact could be significant, but it is indeterminate because exemption must be approved by the local government. Indeterminate recurring local

Local Option for School Critical Needs —Eliminated the authority for school districts to levy an additional 0.25 mills for critical capital outlay or operating needs after June 30, 2011, except that the 17 districts that received voter approval in the 2010 general election for such a levy for FYs 2011-12 and 2012-13, may levy the additional 0.25 mills if approved by a super majority of the school district board. Indeterminate recurring local

Other Local Taxes

Local Business Tax —Specified that an individual who engages in or manages a business, profession, or occupation as an employee of another person is not required to pay a local business tax. Only applies to taxes adopted after October 13, 2010. Indeterminate recurring local

Fee Reductions—State

Public Service Commission Regulatory Assessment Fee —Exempted intrastate interexchange telecommunications companies from the regulatory assessment fee. Also, directed the PSC to reduce the fee for all telecommunication companies. $1.1 million recurring plus indeterminate fee reduction

Physician License Fees —Provides an exemption from license fees for one biennial period for primary care physicians who post a schedule of fees in the reception area of their health care facility. Indeterminate recurring

Loan Originator Licensing Fee —In-house loan processors no longer have to be licensed as loan originators. Indeterminate recurring

Performing Arts Centers —Exempted performing arts centers from the requirement for state approval of volunteer officers or directors. This eliminate the need for background checks and a $24 fee. Insignificant recurring

State Park Fees —Provided for parents of military who have fallen in combat and the spouse and parents of law enforcement officers & firefighters who die in line of duty to receive annual entrance passes to state parks at no charge. Insignificant recurring

Firearms Instructor License —Increased the licensing period for Class K firearm instructor licenses from two to three years. Insignificant recurring

Fee Reductions—Local

Stormwater Fees —Prohibited counties from imposing a fee for stormwater management on agricultural land if the agricultural operation has certain specified permits or implements best management practices (BMPs). (veto override on a bill passed in 2010). $0.5 million recurring local

Household Moving Services —Pre-empted local fees. Indeterminate recurring

New/Increased Taxes & Fees

STATE

Insurance Premium Tax (Surplus Lines) —Authorized Florida to enter into an agreement with other states to collect and allocate non-admitted insurance taxes for multistate policies pursuant. The tax base was also changed from the portion of the premium that is allocable to risks located in Florida to the entire gross premium if Florida is the insured’s “home state.” Additional revenue would offset state revenue loss from a federal law change. Indeterminate (no more than $3.1 million annually)

Household Moving Services -- Biennial registration. $0.1 million (one-time)

Certification of Expert Witnesses for Medical Malpractice or Negligence —New $50 fee. $0.1 million recurring

Pest Control Customer Contact Centers —Established new initial and renewal license fees. Indeterminate recurring

Wildlife Trappers/Rodent Control —Provided for limited certification of commercial wildlife trappers, allowing them to control commensal rodents. Initial application and exam fees were set at $150-$300 and annual recertification fees were set at $75-$150. Indeterminate recurring

LOCAL

Special Assessments —Allowed municipalities with a population less than 100 persons to levy a special assessment to fund special security and crime prevention services and facilities. Allows for abatement of ad valorem taxes if cost of services and facilities were previously funded by ad valorem. Indeterminate recurring local

Tuition Increases

University, College and Workforce Training Tuition Increase —$110.0 million recurring

Transient Student Fees —Authorized state universities to charge a transient student fee not exceeding $5 per distance learning course. Indeterminate recurring

Excess Hours Surcharge —Increased the excess hours surcharge from 50% to 100% of the tuition rate, and applies it to each hour in excess of 115% of the number of credit hours required to complete the baccalaureate degree program. Indeterminate recurring

Transportation Access Fee —Santa Fe College was authorized to establish a transportation access fee not to exceed $6 per credit hour. Indeterminate recurring

Adult General Education —Adult general education programs fees were changed to block tuition of $45 per half year or $30 per term for residents and nonresidents, with out-of-state block tuition of $135 per half year or $90 per term. Indeterminate recurring

Convenience Fee —Allows colleges and school districts to charge a convenience fee for processing automated or online credit card payments, limited to the total cost charged by the credit card company to the school district or college. Indeterminate recurring

Fee Exemptions —Eliminated fee exemptions for some students in adult basic, adult secondary or career preparatory courses. Exemptions are eliminated for: students who do not have a high school diploma or its equivalent; students who have a high school diploma or its equivalent and whose academic skills are at or below the eighth-grade level. Indeterminate recurring

Tax Reductions—State

SALES TAX

Manufacturers’ Machinery & Equipment Exemption —Lowered the threshold for increase in productive output from 10 percent to 5 percent to qualify for the sales tax exemption. $56.4 million recurring ($10.4 local)

Back to School Sales Tax Holiday —3-Day tax free sales of clothing (<$75) and school supplies (<$15). $31.8 million one-time ($5.9 million local)

Aircraft Maintenance and Repair —Lowered the minimum aircraft weight requirement for the sales tax exemptions on repair and maintenance parts and labor for aircraft from 15,000 pounds maximum certified takeoff weight to 2,000 pounds maximum certified takeoff weight. $12.3 million recurring ($2.3 million local)

Expanded Exemption —Expanded the current sales tax exemption for electricity used for production or processing of agricultural products on the farm to include electricity used in a packinghouse where fruits, vegetables, or meat from cattle or hogs are prepared for market or shipment. $2.2 million recurring ($0.4 million local)

Aircraft Engines —Created a new exemption for the purchase of certain chemicals, machinery, parts, and equipment used in the manufacture or fabrication of aircraft engines and gas turbine engines. $1.6 million recurring ($0.3 million local)

Taxicabs —New exemption for the sale or lease of taxicabs designed to enable the transportation of physical disabled persons. $0.2 million recurring

Spaceport Property —Expands the definition of spaceport, allowing Cecil Field to qualify for the sales tax exemption for machinery and equipment. $0.1 million recurring

Sales Tax Collection Allowance —Eliminate the allowance for paper filers. $9.8 million recurring

SALES/CORPORATE INCOME TAX

Entertainment Industry Incentives —Extended sales and CIT tax credits through 2015-16. $42.0 million one-time (FY 2015-16) ($3.7 million local)

Enterprise Zones —Allowed Charlotte and Citrus Counties to apply for enterprise zones. $0.3 million recurring

CORPORATE INCOME TAX

Corporate Income Tax —Increased exemption from $25,000 to $50,000. $29.4 million recurring

New Markets Tax Credits Program —Increased the annual CIT tax credit cap from $20 million to $33.6 million and the total cap for the seven-year program from $97.5 million to $163.8 million. ($12.7 million of total impact comes from insurance premium taxes). $13.6 million recurring

Renewable Energy Technologies —Reinstated and revised the renewable energy technologies investment and the renewable energy production corporate income tax credits . $10.0 million recurring

Urban High-Crime Area Job Tax Credit —Modified the number of qualified employees businesses must have to be eligible for the credit. The modification was temporarily retroactive. $3.5 million recurring ($0.7 million local)

OTHER TAXES

Communications Services Tax —Excluded from the definition of “sales price” charges for property or other services, including Internet access services, which are not separately itemized on a customer’s bill, but which can be reasonably identified from the selling dealer’s books and records kept in the regular course of business. Estimate was indeterminate, but at least $35.5 million recurring ($21.3 million local).

Phosphate Severance Tax —Set the phosphate tax rate at $1.61 per ton severed, except from January 1, 2015—December 21, 2022, where it is set at $1.80 per ton severed. $12.6 million recurring ($3.6 million local)

Oil Severance and Production Tax —Defined a new class of oil, “mature field recovery oil,” and applied the current tiered tax rate structure for tertiary oil to the newly defined class. $1.0 million recurring ($0.1 million local)

Boxing Match Ticket Tax — Eliminate 5% tax on tickets to a closed circuit telecast of a boxing match. $0.3 million recurring

Unemployment Compensation —Provided short-term relief by delaying large UC tax increases. Employers saved more than $800 million over three years, and then began paying it back.

Citrus Taxes —Established the maximum tax rate on grapefruit, tangerines, and fresh oranges at the 2011-12 maximum rates and removes the tax rate tables based on production. The bill effectively prohibited tax rates from increasing above the new cap regardless of production, though they could be reduced. Indeterminate recurring

Tax Reductions—Local

Property Taxes

Miami-Dade —Exempted municipal property when used as an essential ancillary function of a facility constructed with financing obtained in part by pledging proceeds from convention development taxes (impacted only Miami-Dade). $2.8 million recurring local

Government Leaseholds —Expanded the intangible tax exemption to lessee that serve or perform a governmental or public purpose. $0.9 million recurring local

Educational Institutions —Expands the property tax exemption for educational institution to include some land owned by non-profits that provides education limited to PreK to 8 ^th grade. $0.7 million recurring local

Order of Application for Ad Valorem Exemptions —Exemptions must be applied in the order that produces the lowest taxable value. $0.5 million recurring local

Low-Income, Long-Term Senior Resident Exemption —Approved a proposed constitutional amendment authorizing the Legislature to allow counties or municipalities to grant seniors whose household income is less than $20,000 an additional homestead exemption provided that the just value of the property is less than $250,000 and permanent residence has been established by the owner for at least 25 years The Legislature also passed an implementing bill which required a super majority vote of the local authority. Approved by voters in 2012. If all local governments provided the exemption, the impact would be $9.1 million annually. Indeterminate recurring local

Spouses of Those Killed in the Line of Duty —Approved a proposed constitutional amendment to authorize the Legislature to provide ad valorem tax relief on homestead property to the surviving spouse of a veteran who died from service connected causes while on active duty and to the surviving spouse of a first responder who died in the line of duty. The Legislature also passed an implementing bill which enacted a total exemption for these spouses. Approved by voters in 2012. $0.3 million recurring local

Deployed Service Member Exemption —Added additional military operations that are eligible for the exemption. $0.1 million one-time local

Other Local Taxes

Local Business Taxes —Created an exemption for real estate brokers and sales associations. $3.8 million recurring local

Note: Two additional proposed constitutional amendments were put on the ballot by the 2012 Legislature that were defeated at the polls. Both would have provided significant property tax relief. An amendment to provide an additional $25,000 exemption for tangible personal property (and allow local governments to provide addition TPP exemptions) could have saved $20.2 million annually. Another amendment would have provided a 50% homestead exemption that would be reduced as Save Our Homes (SOH) savings increased, decreased the non-homestead assessment cap from 10% to 5% and repeal the SOH recapture provision. These changes would have saved approximately $500 million annually (based on current millage rates).

Fee Reductions—State

State

Dock and Marina Fees —Reduced the fees related to sovereignty submerged land leases required by condos and single-family residences by expanded the lease term, reducing compliance inspections and providing exemptions. $1.0 million recurring

Concealed Weapons and Firearms Licenses —Reduced the $75 fee for an initial license and the $65 renewal fee by $5 each. $0.9 million recurring

Do Not Call List Fees —Eliminated the $10 initial fee and $5 renewal fee to be placed on the “no sales solicitation calls” listing. $0.5 million recurring

Exemptions from registration and licensure requirements —Added certain health care clinics to the definition of home health care agencies exempt from licensure. $0.2 million recurring

Public Lodging Establishments —Exempted certain lodgings from regulation. $0.1 million recurring

Environmental Permitting Fees —Waived, exempted and changed several permit fees. Indeterminate recurring

Corporate Filing Fees —Provided a statutory conversion mechanism for Limited Agricultural Associations to become not-for-profit corporations. Conversion requires payment of a $35 fee. Insignificant one-time

Blood Establishments —Eliminated some fees. Insignificant recurring

Real Estate Schools —Repealed licensure requirements for chief administrators of real estate schools. Insignificant recurring

Insurance Agent Licenses —Repealed the mortgage guaranty insurance agent license and expanded the credit insurance license to include agents formerly covered by the mortgage guaranty insurance agent license. Insignificant recurring

Milkfat Testers —Eliminated the requirement for a $125 license for persons who test milk products for milkfat content. Insignificant recurring

Aquaculture Fees —Waived the required $100 fee for elementary, middle, or high school or vocational school which participates in the aquaculture certification program. Insignificant recurring

Fishing Licenses and Permits —Exempts scuba divers from required fishing license (if vessel owned has proper license) and reduces the blue crab permit from $250 to $125. Insignificant recurring

Fee Reductions—Local

Stormwater Fees —Added cities to the prohibition against counties from a fee for stormwater management on agricultural land if the agricultural operation has certain specified permits or implements best management practices (BMPs). $0.9 recurring local

Environmental Permitting Fees —Waived, exempted and changed several permit fees. Indeterminate local recurring

New/Increased Taxes & Fees

Fertilizer Licenses and Fees —Extended the $100 annual license fee to distribute fertilizer and for each specialty fertilizer registration and the fee of fifty cents per ton for all fertilizer containing nitrogen or phosphorus through 2022. This provision was set to expire on December 31, 2012. $1.0 million recurring

Assessment for Criminal Analysis Laboratory Services —Expanded the $100 assessment for drug violations to the entire criminal code (permissive) and mandated the fee if the services of a local county-operated crime laboratory are used in connection with the investigation or prosecution. $2.4 million recurring

Statewide Law Enforcement Radio System Funding —Continued the $3 surcharge on criminal offenses and noncriminal moving traffic violations through July 1, 2021. Was set to expire July 1, 2012. $5.2 million recurring

Contractor Licenses —Required contractor licenses for persons demolishing structures three stories and under. Insignificant recurring

Secondhand Dealer Registration Fees —Repealed exemption for “Any person purchasing, consigning, or trading second hand goods at a flea market.” The business would now be required to obtain a registration. Insignificant recurring

Dental Hygienists —Restricts the delegation of applying anesthetics to those registered dental hygienists which also are certified to performs such procedures. A certification fee of up to $35 is required. Insignificant recurring

Tuition Increases

Tuition —Excess Hours Surcharge for Baccalaureate Degrees. $2.5 million recurring

University Capital Improvement Fee —Allowed the fee to increase by up to $2 a year, not to exceed 10% of tuition. Indeterminate recurring

College Capital Improvement Fee —Raised the fee cap from 10% of tuition to 20%. Indeterminate recurring

Differential Tuition —Authorizes a state research university that substantially meets 11 of the 14 academic and research excellence standards to increase student tuition and fees to differentiated and market rate in addition to the tuition differential fee once each academic year beginning with the Fall term. Indeterminate recurring

Tax Reductions—State

SALES TAX

Manufacturing Machinery and Equipment —Created a sales tax exemption for machinery and equipment purchased by manufacturers. Previously, the M&E exemption was only available to spaceports and “new and expanding manufacturers.” $131.7 million recurring ($25.2 million local)

Back to School Sales Tax Holiday - 3-Day tax free sales of clothing (<$75) and school supplies (<$15). For the first time, computers were included (sales price of $750 or less for home or personal use). $34.0 million one-time. ($6.3 million local)

Off-Highway Fuel —Exempted Dyed Diesel Fuel used in commercial fishing. $0.4 million recurring

Aircraft Maintenance —Expanded the exemption for the repair and maintenance of rotary wing aircraft to aircraft between 2,000 and 10,300 pounds (includes parts and labor). Current exemption applied only to aircraft over 10,3000 pounds. $1.3 million recurring ($0.2 local)

Spaceport —Expanded spaceport territory in Brevard County to be eligible for the sales tax exemption on machinery and equipment. $0.1 million recurring

Natural Gas for Fuel Cells —Exempted the sale of gas for fuel cells for stationary equipment. $0.1 million recurring

CORPORATE INCOME TAX

Enterprise Zones —Allowed the amount of the CIT tax credit that is not used in any one year to be carried forward for a period not to exceed 5 years. $0.8 million recurring

SALES/CORPORATE INCOME TAXES

Enterprise Zones —Allowed some zones to expand their boundaries. $0.5 million over 3 years (sales/CIT)

OTHER TAXES

Hunting and Fishing Licenses —Repealed a scheduled increase (based on CPI growth) for 2013 and every five years. The bill also provided three limited exemptions from license fees that all had an insignificant impact. $4.4 million recurring

Hunting & Fishing Licenses — Made several changes. Allowed individuals to be eligible to purchase a Florida resident recreational hunting or fishing license immediately, without having to continuously reside in the State for six months. Authorized a total of four license–free recreational saltwater fishing days and four license–free recreational freshwater fishing days to the public. Disabled veterans and active or reserve duty military were exempt from needing recreational hunting or fishing license for outdoor recreational events designed to provide rehabilitation or enjoyment to them. Immediate family members and one designated person to assist each disabled veteran were also exempted. Insignificant recurring

New Markets Tax Credits —Increased the total insurance premium tax credit cap from $163.8 million to $178.8 million and the single fiscal year limit of $33.6 million to $36.6 million. $3.0 million recurring

Motor Vehicle License Tax —Exempted some Low Speed Vehicles (golf carts) from license and registration taxes. $0.2 million recurring

Tax Reductions—Local

PROPERTY TAX

Agricultural Land —Eliminated some criteria that VABs use to reclassify agricultural land as non-agricultural. $0.5 million recurring local

Renewable Energy Devices —In 2008, voters approved a constitutional amendment that authorized (not mandated) the Legislature to create a property tax exemption for renewable energy devices and wind hardening improvements for residential properties. Four years later, the Legislature created an exemption for renewable energy devices (but not wind resistance improvements). $12.6 million recurring local

Rental of Homestead —Provided that rental of less than 30 days does not affect homestead exemption. $0.1 million recurring local

Aquaculture —Added aquacultural crops to the list of agricultural products exempt from taxation until they have reached maturity. $0.1 million recurring local

Educational Institutions —Allowed more institutions to qualify for the exemption. $0.1 million recurring local

Fee Reductions—State

STATE

Vessel Registration Fees —Repealed a scheduled increase (based on CPI growth) for 2013 and every five years. $2.3 million recurring

Dock and Marina Fees —For the second year in a row, reduced the fees related to sovereignty submerged land leases. $1.5 million recurring

Air Pollution Permits —Provided that the annual fee for air pollution permit holders be calculated by multiplying a fee factor times the tons of air pollution actually emitted. $1.0 million recurring

Non-Profits —Eliminated the $10 annual registration fee for more small non-profits. $0.1 million recurring

Permit Fees —Eliminate annual permit for livestock haulers. $0.5 million recurring

Environmental Resource Permits —Exempted the following from the regulatory and permitting requirements: Construction, operation or maintenance of manmade excavated farm ponds constructed entirely in uplands if less than 15 acres in size and has an average depth less than 15 feet, and is more than 50 feet from any wetlands, and activities affecting wetlands created by the flooding or interference with the natural flow of surface water caused by an unaffiliated adjoining landowner. Indeterminate recurring

Health Professional Licenses —Required the Dept. of Health to waive the initial licensing fee, application fee, and unlicensed activity fee for an honorably discharged military veteran who applies within 24 months after discharge. Fees applicable to radiological personnel will also be waived. Insignificant recurring

Fee Reductions—Local

Security Alarm Installation Permits —Set maximum rate of $55, effective January 1, 2015. $0.1 million recurring local

Building Fees —Exempted nonresidential farm buildings, farm fences, and farm signs from state and local building business codes and fees. Insignificant recurring local

Tuition Reductions

College Tuition and Fees —Provided authority for the Florida College system to waive portions of upper–level tuition and fees associated with baccalaureate programs costing no more than $10,000. $5.7 million recurring local

New/Increased Taxes/Fees

STATE

Affordable Housing/Brownfields —Narrowed the application of the sales tax exemption for building materials for affordable housing in a brownfield area. $1.5 million recurring ($0.3 million local)

Inspection Fees —The Department of Agriculture and Consumer Service is responsible for inspecting weight and measurement systems used in commerce. The program is currently funded through permit fees. The inspection program and associated permit fees was set to be repealed effective July 1, 2014. The repeal was delayed until 2020. $1.9 million recurring

Agricultural Privilege Tax —Increased this tax which is levied upon entities in Everglades Agricultural Area that conduct agricultural trade or business. $4.7 million recurring

Health Insurance Fees —Required DFS to register Insurance Navigators and individuals who provide assistance and information regarding choices for enrollment in a qualified health plan. Indeterminate recurring

Underground Natural Gas Storage —Established a regulatory structure for the underground storage of natural gas and authorized DEP to issue permits for natural gas storage facilities and charge a permit application fee. Insignificant recurring

Fire Equipment Fees —Reduced fees on fire equipment dealer and contractors. Insignificant recurring

LOCAL

Property Taxes —Eliminated the property tax exemption for affordable housing owned by a Florida-based limited partnership. Enacted in 2009, the exemption was designed to benefit non-profits, but for-profits were able to claim it. $117.2 million recurring local

Tax Reductions—State

MOTOR VEHICLE LICENSE TAX

Motor Vehicle —Rolled back the annual motor vehicle license taxes, tax surcharges and fees that were increased by the 2009 Legislature to offset a budget shortfall. $394.6 million recurring

SALES TAX

Back to School Sales Tax Holiday - 3-Day tax free sales of clothing (<$100), school supplies (<$15), and computers (sales price of $750 or less for home or personal use). $39.3 million one-time ($7.1 million local)

Hurricane Preparedness Sales Tax Holiday —9-day tax free sales of many items such as portable self-powered radios and light, generators, batteries, coolers and ground anchor systems. $2.7 million one-time ($0.5 million local)

Energy and Water Efficient Appliance Sales Tax Holiday —3-day tax free sales on the first $1,500 of qualifying Energy Star and Water Sense certified products. $1.7 million one-time. ($0.3 million local)

Private Label Credit Cards —Allowed private-label credit cards companies to get a refund or credit for sales taxes paid on uncollectable receivables. $8.2 million recurring ($1.5 million local)

New Sales Tax Exemptions were created for:

• Cement mixing drums (3-years)—$12.3 million over three years ($1.4 million local)
• Car seats and child bike helmets—$2.9 million recurring ($0.5 million local)
• Prescribed diet pet food—$3.1 million recurring ($0.6 local)
• Pre-paid college meal plans—$14.2 million recurring ($2.6 million local)
• Tickets to Major League Soccer and NBA All-Star Games and Events—indeterminate ($0.1 million if event is held)

Electricity —Reduced the sales tax rate for charges for electrical power by 2.65% and increased the gross receipts tax rate on electricity by 2.6%. The change was made to shift revenue from GR to PECO, but a small net tax decrease resulted. $3.3 million recurring

Rural Electricity Exemption —Eligible businesses that receive a rural job tax credit can also receive a tax refund of up to 50 percent of the amount of sales tax on purchases of electricity. $0.1 million recurring

SALES/CORPORATE INCOME TAXES

Community Contribution Tax Credits —Extended the program for one year and increased the cap to $18.4 million from $10.5 million for projects that provide homeownership opportunities for low–income or very low–income households and $3.5 million annually for all other projects. $31.8 million over two years ($4.9 million local)

INSURANCE PREMIUM/CORPORATE INCOME TAXES

New Market Tax Credits — Increase the total credit (CIT/IPT) cap from $178.8 million to $216.34 million. $7.7 million recurring

INSURANCE PREMIUM TAX

Title Insurance —Exempted the amount of bail bonds retained by the title insurance agent or agency from the insurance premium tax. $5.4 million recurring

Bail Bonds —Exempted the amount of bail bonds retained by the agent from the insurance premium tax. $0.7 million recurring

OTHER TAXES

Car Sharing Services —Reduced the $2 per day rental car surcharge to $1 for members of a car sharing service that uses a car for less than 24 consecutive hours. $0.5 million recurring

Pugilistic Exhibitions —Reduced several taxes and fees related to professional and amateur boxing, kickboxing, and mixed martial arts matches that are regulated by the Florida State Boxing Commission.
$1.0 million recurring.

Drivers Licenses —Exempted active duty military service members’ spouses and dependents from the requirement to obtain a Florida driver license if the dependent enrolls in a Florida public school or accepts employment or engages in a trade, profession or occupation in the state. Indeterminate recurring

Tax Reductions—Local

Property Tax on Water Retention —Provided that agricultural lands which participate in a dispersed water storage program which requires flooding of land shall continue to be classified as agricultural lands for the duration of the program and shall be assessed as nonproductive agricultural lands. $0.1 million recurring local

Tuition Reductions

Out–of–State Tuition/Fee Waiver —Created a new out–of–state fee waiver for students who are undocumented for federal immigration purposes and who meet certain conditions, including attending a Florida high school for three consecutive years immediately before graduating from a Florida high school. These students cannot be charged tuition and fees that exceed those charged to a resident student.
$16.5 million recurring

Out–of–State Tuition/Fee Waiver —Created a new out–of–state fee waiver for honorably discharged veterans of the U.S. Armed Forces, U.S. Reserve Forces, or the National Guard who physically reside in Florida while enrolled in the institution. Veterans receiving this waiver cannot be charged tuition and fees that exceed those charged to a resident student. $9.1 million recurring

Tuition Exemption —Created an exemption from the payment of tuition and fees at a state university for child protection and child welfare personnel who are employed by DCF, community–based care (CBC) lead agencies, or subcontractors of CBC lead agencies and who do not possess a master’s degree in social work. $1.5 million recurring

Fee Reductions—State

I.D. Card Fee — Exempted persons who are homeless or whose annual income is at or below 100 percent of the federal poverty level from the $25 fee. $1.2 million recurring

ID Card Fees & DOH Birth Certificate Fees —The state must provide Florida–born inmates with a certified copy of their birth certificate and a state identification card before his or her release. The fees were waived. $0.5 million recurring

License Fee Waivers for Veterans —Extended the eligible time period for the fee waiver for military veterans who are honorably discharged from 24 months to 60 months of discharge. In addition, the spouse of an eligible military veteran is permitted to obtain waiver of the same fees. Applies to licensing fees of the Departments of Health and Business and Professional Regulation. $0.1 million recurring

Deregulation of Dance Studios —The $300 annual registration fee was eliminated. $0.1 million recurring

Coastal Construction and Excavation Permit Fees —Made several structures eligible for a lower cost fee type. $0.1 million recurring

Off-Highway Vehicle Titles —Reduced the title fee due on some off-highway recreational vehicles. Insignificant recurring

New/Increased Taxes/Fees

Education Fee —Publishers participating in the DOE instructional materials approval process must pay a fee of up to $1,000. $0.1 million recurring

Licensing —Instituted application, registration and renewal fees for family trust companies. $0.1 million recurring

Pharmacy Fees —Nonresident Pharmacy Sterile Compounding Permit. $0.1 million recurring

Fees for Low-THC Cannabis Dispensaries . Indeterminate recurring

Lobbyists —Water Management District Lobbyist Fees (up to $40, permissive). Indeterminate recurring

Insurance Regulation —Unaffiliated Insurance Agent Appointment Fee. Indeterminate recurring

Fee for unsolicited proposals to lease DOT property . Indeterminate recurring

Health Access Dental License —Delayed scheduled repeal for five years. Insignificant recurring

Tax Reductions—State

COMMUNICATIONS SERVICES TAX

Rate Reduction —Reduced the state CST rate by 1.73 percentage points beginning July 1, 2015. The standard rate was reduced from 6.65 percent to 4.92 percent and the rate on direct-to-home satellite is reduced from 10.8 percent to 9.07 percent. Revenue distributions were revised to ensure that local governments continue to receive the same revenue as under current law. $226.1 million recurring

SALES TAX

Back to School Sales Tax Holiday - 10-Day tax free sales of clothing (<$100), school supplies (<$15), and computers for home or personal use (first $750 of sales price). $67.8 million one-time ($12.4 million local)

Agricultural Exemptions —Created exemptions for aquaculture feed, power farm equipment used in the storage of raw products, irrigation equipment, repair (including parts and accessories) for power farm and irrigation equipment, planting stakes, and trailers weighing 12,000 or less and used exclusively for agriculture production or product transport (first $20,000 of sales price). $13.4 million recurring ($2.4 million local)

School Concessions —Exempted food and drink (including supplies) sold by school support organizations if the organization paid tax when purchasing the items from their supplier. $1.7 million recurring ($0.2 million local)

College and University Textbooks —Created a one-year exemption for textbooks and printed and digital materials required or recommended for a course offered by a public postsecondary educational institution or a nonpublic postsecondary educational institution that is eligible to participate in tuition assistance programs. $41.5 million one-time ($7.6 million local)

Boat Repairs —Capped the sales tax paid on repairs of boats at $60,000. $4.1 million recurring ($0.5 million local)

Gun Clubs —Exempted membership fees. Gun clubs are defined as organizations whose primary purpose is to offer access to shooting ranges for target and skeet shooting. $1.2 million recurring ($0.2 million local)

Motor Vehicles Purchased Overseas by Military —Created an exemption for any motor vehicle purchased and used for six months or longer in a foreign country by an active member of the United States Armed Forces or that member’s spouse. $0.8 million recurring ($0.1 million local)

SALES/CORPORATE INCOME TAX

Community Contribution Tax Credits —Extended the expiration of program to June 30, 2018, expanded eligibility to include projects designed to provide housing opportunities for persons with special needs, and provides $21.4 million in annual funding for projects that provide homeownership opportunities for low-income and very-low-income households or housing opportunities for persons with special needs and $3.5 million for all other projects. $24.9 million a year for two years ($2.4 million local)

CORPORATE INCOME TAX

Brownfield Credits —Increased the annual amount of credits that may be awarded from $5 million to $21.6 million in FY 2015-2016. $16.0 million one-time

Enterprise Zones —Extended the benefits for businesses that have an active contract with the Department of Economic Opportunity. $8.2 million over five years. ($0.6 million local)

Research and Development Credits —Increased the total amount of credits that may be awarded during calendar year 2016 from $9 million to $23 million. $14.0 million one-time

FUEL TAX

Aviation Fuel Tax —Provided an exemption or refund for aviation fuel used for flight training through a school of aeronautics or college of aviation by any college based in this state that is tax exempt or any university based in this state that is accredited or has applied for accreditation by the AABI and offers a graduate program in aeronautical or aerospace engineering or offers flight training through a school of aeronautics or college of aviation. $0.2 million recurring

INSURANCE PREMIUM TAX

Title Insurance —Repealed the expiration date of the exemption for portions of title insurance premiums retained by agents or agencies if the Department of Economic Opportunity certifies that the title insurance industry has increased employment in Florida by 600 full-time employees by July 1, 2017. $4.6 million recurring

FIGA Assessment —Exempted regular Florida Insurance Guaranty Association assessments from the insurance premium tax. Indeterminate recurring

Financial Guaranty Insurance —Provided that financial guaranty insurance does not include guarantees of higher education loans, unless written by a financial guaranty insurance corporation. This exempt them from the 1.75 percent insurance premium tax. Insignificant recurring

Tax Reductions—Local

Local Mining Taxes —Reduced taxes on mining in the Lake Belt region of Miami-Dade County. Reduce the 45 cents/ton mitigation fee to 25 cents in 2016, 15 cents in 2017, and 5 cents in 2018 and subsequent years. Reduced the 15 cents/ton water treatment upgrade fee to 6 cents and discontinued it in 2018. $15.2 million recurring local

Military Housing —Provided that property used pursuant to the Military Housing Privatization Initiative of 1996 is considered to be property of the United States and therefore exempt from property taxation. Retroactive application to January 1, 2007. Indeterminate recurring

Downtown Development District —Reduced the maximum allowable millage rate than can be levied by Miami’s Downtown Development District from 0.5 mills to .475 mills. Insignificant recurring

Fee Reductions—State

Procurement Fee —Reduced the fee vendors pay to use Florida’s online procurement system (MyFloridaMarketPlace.com) from 1% to 0.7% for eight months . $5.7 million (one-time)

CPA Licenses —Provided that proprietorships and firms that provide accounting services but do not market or call themselves CPAs are no longer required to be licensed. Insignificant recurring

Alligator Trapping Licenses —Provided that children under 16, current military, wounded warriors or permanently disabled persons are no longer required to pay for the license. Also contracted nuisance alligator trappers will also be exempt when trapping nuisance alligators at the request of FWC. Insignificant recurring

Food and Lodging Licenses —Reduced the delinquent renewal fee for licenses for public food service establishments and public lodging establishments. $0.3 million recurring

Health Care Licenses —Allowed all related Home Health Agencies and nurse registries within the same health service planning district to be included on one licenses. Previously all related offices outside the main office’s county had to be separately licensed. $0.3 million recurring

Fee Reductions—Local

VAB Petition Fees —Provided that an owner of multiple items of tangible personal property may file a single joint petition if the property appraiser determines such items of tangible personal property to be substantially similar in nature. $0.1 million recurring local

Low-Voltage Alarm System Fee —Reduced the maximum charge for a basic permit labels a contractor must purchase for the installation or replacement of a new or existing alarm system from $55 to $40. Indeterminate recurring local

Local Government Parking Fees —Exempted vehicle that display a Disabled Veteran “DV” license plate from paying parking fees charged by a county, municipality, or any agency thereof, in a facility or lot that provides timed parking spaces. Indeterminate recurring local

Tuition Reductions

Out–of–State Tuition/Fee Waiver —Expanded the out–of–state fee waiver created in 2014 for honorably discharged veterans to include their dependents. Those receiving this waiver cannot be charged tuition and fees that exceed those charged to a resident student. $2.5 million recurring

Fee Increases

Pharmacy Fees —Created a $55 to allow a pharmacy intern to certify with the Board of Pharmacy to administer vaccines under the supervision of a pharmacist who is also certified to administer vaccines. Indeterminate recurring

Equity Crowdfunding —Created an exemption from securities registration within the Florida Securities and Investor Protection Act for intrastate crowdfunding. However, a $200 filing fee for Issuers and intermediaries was created. Insignificant recurring

Tax Reductions—State

SALES TAX

Sales Tax Exemption for Manufacturing Machinery and Equipment —The existing exemption—set to expire April 30, 2017—was made permanent. $73.1 million recurring ($13.4 million local)

Machinery and Equipment Exemption Expansion —Two industries were also added to the exemption. Machinery used by metal recyclers and “postharvest machinery and equipment” used by fruit and vegetable packinghouses will now be eligible for the exemption. $3.3 million recurring ($0.7 million local)

Back to School Sales Tax Holiday - 3-day tax free sales of clothing (<$60) and school supplies (<$15). $28.2 million one-time. ($5.3 million local)

Veterans Organizations —Added the American Legion and Veterans of Foreign Wars of the United States to the list of sales tax exempt organizations and exempted sales of food or drink by qualified veterans’ organizations in connection with customary veterans’ organization activities to members of qualified veteran’s organizations. $1.6 million recurring ($0.2 million local)

Corporate Income Tax

Corporate Income Tax Piggyback —With some exceptions, the Legislature updates the Florida tax code to reflect changes in the federal Internal Revenue Code enacted by Congress. This year, the Legislature adopted the permanent increase in the expensing limitation from $25,000 to $500,000. However, taxpayers were required to spread the effect of accelerated federal depreciation deductions over seven taxable years. The bonus depreciation provisions have an indeterminate impact that could be negative or positive. The impact of the expensing deduction is $1.5 million recurring ($3.2 million in the first year)

Other Taxes

Asphalt Tax —Phased out the indexed sales tax on asphalt manufactured which is used for any federal, state, or local government public works project over three years. $1.7 million recurring ($0.2 million local)

Alcoholic Beverage Tax —Provided that pear cider with an alcohol content of between 0.5% and 7.0% would be taxed the same as apple cider at $0.89 per gallon, rather than at $2.25 per gallon like wine.
$0.1 million recurring

Commercial Driver License Tax —Exempted the owners and operators of farm vehicles from the requirement to possess a commercial driver’s license. $0.1 million recurring

Aviation Fuel Tax —Eliminated a long-standing credit or refund for air carriers offering transcontinental jet service and that, after January 1, 1996, increased the air carrier’s Florida workforce by more than 1000 percent and by 250 of more full time equivalent employee positions. The rate was reduced to 4.27 cents per gallon from 6.9 cents per gallon (to make it revenue neutral) effective July 1, 2019. Some carriers will pay more, some less. Indeterminate recurring

Motor Vehicle License Taxes —Allowed farm tractors and farm trailers to travel on the roads for up to three days without registration, paying license taxes, or license plates, when moving from an auction site or other place of purchase to the purchaser’s property. Insignificant recurring

Workers Compensation —Employers can be assessed a penalty for failing to cover an employee. The penalty is based on an impute payroll of twice the statewide average weekly wage for each individual that the employer failed to cover. The imputed payroll multiplier was reduced from 2 to 1.5 times the SAWW. The department was also authorized to reduce the penalty by 25% for employers who previously have not been issued a stop work order or order of penalty assessment. $1.6 million recurring

Tax Reductions—Local

PROPERTY TAX

Local School Property Taxes —The Legislature also moved to hold down required local effort (RLE) property taxes for schools in the budget. Both the House and the Senate budgets originally proposed to keep the same RLE millage rate as last year. The growth in property values would have provided more than $500 million in addition revenue. However, a lower RLE millage was set that saved $428.1 million compared to keeping last year’s rate. This is being characterized by many as a property tax cut but in reality, only a portion (the amount below the rolled back rate) is really a tax cut.

Exemption for Deployed Military Personnel —Added 11 military operations that qualify for the current property tax exemption for service members deployed in the previous year. $1.0 million recurring local

Property Taxes —If the property appraiser improperly grants a property assessment limitation as a result of a clerical mistake or an omission, the person or entity improperly receiving the property assessment limitation many not be assessed a penalty or interest. $0.8 million recurring local

Agricultural Lands —Expanded tax treatment of lands classified for assessment purposes as agricultural lands which are taken out of production by a state or federal eradication or quarantine program.
$0.2 million recurring local

Local Economic Development Property Tax Exemption —Specified that replacement equipment for a data center qualifies for the exemption and that the exemption shall remain in effect for 20 years (as opposed to 10 years for other facilities under current law). Indeterminate recurring local

Proposed Property Tax Constitutional Amendments (were approved by voters)

Renewable Energy Devices —This proposed constitutional amendment would give the Legislature the authority to expand the current exemption for renewable energy devices on residential property to all property and also exempt them from tangible personal property (TPP) taxes. (see 2017 for the implementing bill that passed for the fiscal impact)

Exemption for Disabled First Responders —This proposed constitutional would allow the Legislature, as provided by general law, to exempt from property taxes first responders who are age 65 or older and totally, permanently disabled as a result of an injury or injuries sustained in the line of duty. (see 2017 for the implementing bill that passed for the fiscal impact)

Homestead Exemption for Low-income Elderly —Previously, local governments could provide a full exemption to low income elderly individuals that are long-term (25 year) residents. The value of the home could not exceed $250,000. If it is rose above that, the exemption was lost. This proposed constitutional amendment provided that the $250,000 limit applies only at the time the exemption is acquired. The elderly homeowner would not lose the exemption due to increasing value. $4.2 million recurring local

Other Local Taxes

Local Option Sales Tax for Unfunded Pension Liability —Allowed a county to levy a local option sales tax of 0.5 percent to fund underfunded pension programs. A county can only impose the surtax if the underfunded defined benefit retirement plan or system is below 80 percent of actuarial funding. Also the county must currently levy a local government infrastructure surtax which is scheduled to terminate and is not subject to renewal and the surtax does not take effect until the local government infrastructure surtax is terminated. New employees may not be enrolled in a defined benefit plan. Further, the bill requires employees to make an employee retirement contribution of 10 percent. The bill was requested by Jacksonville/Duval County. If all eleven counties that qualified levied the tax, the impact would be $544.1 million. Duval County passed enacted the tax. $85.4 million recurring

Fee Reductions—State

STATE FEES

Concealed Weapon Licenses —Lowered the fee for both the initial and renewal license by $10.
$2.8 million recurring

Unlicensed Activity Fees —Prohibited the imposition of the fee on a license renewal for any profession whose unlicensed activity account balance totals more than twice the total of the expenditures for unlicensed activity enforcement efforts in the preceding 2 fiscal years. The Department of Business and Professional Regulation imposes a $5 fee on each initial and biennial renewal professional license to fund efforts to combat unlicensed activity. $1.7 million recurring

Background Screening Fee —Decreased the cost of a background screening from $24.00 to $8.00 per name submitted for the Agency for Persons with Disabilities’’ providers, vendors, employers, and Consumer Directed Care Plus participants and representatives. $0.1 million recurring

Pest Control Licenses —Removed the $150 license issuance fee and applicants will only pay the application and examination fee of $300. The bill also removes the $50 late fee. $0.1 million recurring

Food Service Licensing —Food services maintained by educational institutions and eating establishments maintained by religious and nonprofit civic or fraternal organizations are exempted from licensure as a food service establishment. The exemption was expanded to include 1-3 day temporary events, cook-offs, and food contests that are hosted by religious and nonprofit civic or fraternal organizations, and educational institutions. $0.2 million recurring

Vessel Registration Fees —For one year, reduced vessel registration fees for recreational vessels when the vessel is equipped a locating beacon. $0.3 million one-time

Broker Registration Fees —Provided that the offer or sale of securities solely in connection with the transfer of ownership of an eligible privately-held company through an Merger & Acquisition broker is an exempt transaction. M&A brokers were also exempted from registration with the OFR as a dealer if certain conditions are met. Insignificant recurring

Amusement Ride Registration Fees —Exemptions were provided for smaller water attractions or rides at hotels or campsites, private country clubs or playgrounds, and facilities run by non-profits, such as the YMCA. Insignificant recurring

Drug Permitting Fees —A number of prescription drug-related industries were reclassified to different permits. The fee remained the same for most, but permits for out-of-state prescription drug wholesale distributors would be $100 less. Insignificant recurring

Fee Reductions—Local

Local Fire Assessments —Prohibited county and municipal governments from levying assessments for fire protection services on land classified as agricultural, unless the land contains a residential dwelling, or a nonresidential farm building with a just value in excess of $10,000. “Agricultural pole barns” were also excluded from imposition of the special assessment if 70 percent or more of the perimeter walls are permanently open and allow free ingress and egress. $3.5 million recurring local

Local Government Parking Fees —Exempted disabled veterans from paying parking feeds at airports and added more disabled veterans to the exemption from paying parking fees charged by a county, municipality, or any agency thereof, in a facility or lot that provides timed parking spaces. $0.6 million recurring local

Contractor License Fees —Prohibited local governments from requiring the payment of any additional fees associated with providing proof of licensure, recording or filing a license, or providing, recording, or filing evidence of workers’ compensation insurance coverage. $0.1 million recurring local

Local Park Fees —Required local governments to give partial or full discounts on park entrance fees to veterans, current military, and surviving spouses and parents of veterans, law enforcement, firefighters or EMTs. Insignificant recurring

Local Transportation Fees —Required regional transportation authorities to provide a partial or full discount on fares for the use of a fixed-route transportation system to a disabled veteran. Zero to negative Insignificant recurring local

Tution Reductions

Veteran Fee Waivers —Waived the initial license or registration fees for certain veterans and their spouses that apply for licensure in some professions and industries regulated by the Dept. of Agriculture and Consumer Services. These include private investigators, firearms instructors, travel agents, surveyors, telemarketers, auto repair, and more. $1.1 million recurring

Out–of–State Tuition/Fee Waiver —Requires state universities, colleges, career centers operated by school districts, and charter technical career centers to waive out-of-state fees for active duty members of the U.S. Armed Forces residing or stationed outside of Florida. Students who qualify for this waiver cannot be charged tuition and fees that exceed those charged to a resident student. $1.0 million recurring local

Purple Heart Tuition Waiver —Expanded the waiver to allow current Florida residents who earned the combat decoration as residents of other states, as well as non-Florida residents who earned the combat decoration while a resident of Florida, to qualify. The waiver only applies to tuition; therefore, non-Florida residents will still be required to pay the out-of-state fee to enroll. $0.1 million recurring local

New/Increased Taxes/Fees

STATE

Abortion Clinic License Fees —Removed the dollar amount cap on clinic license fees and allowed AHCA to establish the amount of the fee at no more than the costs incurred to license and regulate clinics. The bill also requires abortion referral or counseling agencies to register with AHCA and pay a registration fee . $0.1 million recurring

Fingerprint Retention Fees —An individual who wishes to work in the private security, private investigative, or repossession industries regulated by the Department of Agriculture and Consumer Services must provide a set of fingerprints and submit to a criminal history background check prior to licensure. The Legislature required the Department to participate in both a federal and state background check and fingerprint retention program and increased associated fees. $1.1 million recurring

Tobacco Tax —The definition of wholesale price of “other tobacco products” (not cigarettes or cigars) was changed to include the federal excise tax in the price. This addressed litigation that resulted in the court ruling an overseas company did not have to pay that amount and was entitled to refunds.
$2.4 million recurring

Expungement Fee —Created a new $75 fee for the expungement of criminal records for persons between 18 and 21 years of age. Indeterminate recurring

Family Trust Company Fees —The reinstatement fee was increased from $100 to $500. Insignificant recurring

Beverage Licenses —Included “culinary education programs” within the definition of “public food service establishments” that must be licensed by DHR and created a special alcoholic beverages license for these programs to sell alcoholic beverages to the public either on the establishment’s premises or during catering events. Insignificant recurring

Tax Reductions—State

SALES TAX

Business Rent Tax —Reduction in the state sales tax rate on the rental of commercial real estate from 6 percent to 5.8 percent, beginning January 1, 2018. $61.0 million recurring ($7.0 million local)

Back-to-School Sales Tax Holiday —A three-day sales tax holiday, during which the following would be exempted from sales taxes: clothing (< $60), school supplies (<$15), and the first $750 of the sales price of computers and accessories purchases for noncommercial use. $33.2 million (one-time), $6.8 million local

Disaster Preparedness Sales Tax Holiday —A three-day sales tax holiday for items including: portable self-powered light sources; self-powered radios, two-way radios, or weather band radios; tarpaulins or other flexible waterproof sheeting; first-aid kits; ground anchor systems or tie-down kits; gas or diesel fuel tanks; batteries; portable generators; and reusable ice. $4.5 million one-time ($0.9 local)

Sales Tax Exemption for Feminine Hygiene Products —Effective January 1, 2018, products used to absorb menstrual flow will be exempt from state and local sales taxes. $11.2 million recurring ($2.3 local)

Sales Tax Exemption for Items Used in Agriculture —Numerous products for use in agriculture are currently exempt from the sales tax. Effective July 1, 2017, an exemption for animal and aquaculture health products. $2.7 million recurring ($0.6 local)

Sales Tax Exemption for Data Centers —An exemption was created for property purchased or rented by data center owners or tenants if the property is used to construct, maintain or operate computer servers. The data center must make a capital investment of at least $150 million and have at least 15 megawatts of power. $2.6 million recurring ($0.5 local)

Rural Areas of Opportunity (RAO) — Sales tax exemptions were created for building materials, pest control services, and the rental of tangible personal property used in new construction in RAOs. At least $14.4 million over the first four years (total), then $1.9 million recurring ($0.6 million local)

Sales Tax Exemption for Admission Resales —An exemption was provided for certain resales of admissions to a purchaser that is eligible for an exemption from sales tax. $3.0 million recurring ($0.6 million local)

Sales Tax Exemption for a Municipal Golf Course —An exemption was created for purchases by an entity under contract to operate a municipal golf course in Miami-Dade. $0.2 million recurring

TAX CREDITS

Research & Development (R&D) Credit —Provided a one-time increase in the cap on total tax credits against the state corporate income tax (CIT) for businesses that received the federal R&D credit from $9.0 million to $16.5 million a year. $7.5 million ($5.4 million in 2018-18 and $2.1 million in 2018-19)

Brownfield Cleanup Tax Credit —The cap on total credits was increased from $5.0 million to $10.0 million. $5.0 million recurring

Community Contribution Tax Credit —The CCTCP was limited to $24.9 million per year and was slated to expire June 30, 2018. The program was made permanent, but the cap was reduced to $14.0 million per year. $14.0 million recurring ($1.4 local)

Other Taxes

Alcoholic Beverage Taxes —Aligned Florida’s definitions of “beer” and “malt beverage” more closely with federal law to result in the lower tax rate for beer ($0.48 per gallon) being applied to “spirituous seltzer beverages” (hard seltzer), instead of the higher tax rate for liquor ($2.25 per gallon). Indeterminate recurring

Motor Vehicle License Tax —Exempted boat trailers operated by a nonprofit organization from paying any base license tag tax and other ancillary. The trailer must be used exclusively in carrying on the organization’s customary nonprofit activities. Insignificant recurring

Tax Reductions—Local

PROPERTY TAX

Property Tax Exemption for Renewable Energy Devices —Implementation of a constitutional amendment passed by the voters in November 2016. The existing property tax exemption for renewable energy devices for residential property was expended to all property. These devices will also be exempt from tangible personal property taxes (TPP). The new language expires in 20 years. $21.4 million recurring local

Property Tax Discount for Affordable Housing — A 50 percent property tax discount was created for property used to provide affordable housing if the property: provides housing to extremely low, very low, or low-income persons; is part of a multifamily project in which at least 70 units are providing affordable housing; and is subject to an agreement with the Florida Housing Finance Corporation to provide affordable housing. $25.8 million recurring local

Property Tax Exemption for First Responders —Implementation of a constitutional amendment passed by the voters in November 2016 to provide a 100 percent homestead tax exemption to first responders who became totally and permanently disabled in the line of duty. A 100 percent exemption was also extended to the surviving spouse of a totally and permanently disabled first responder. $2.8 million recurring local

Property Tax Exemption for Non-Profit Assisted Living Facilities —An exemption for 501(c)(3) assisted living facilities was added. $6.9 million recurring local

Property Tax on Charter Schools —The exemption for property used for educational purposes by a charter school was expanded to apply to a charter school that is leasing a facility in Flagler County. $0.1 million recurring local

Tangible Personal Property Taxes —The definition of inventory (which is exempt) was amended to include construction and agricultural equipment weighing 1,000 pounds or more that is returned to a dealership under a rent to purchase option and held for sale to customers in the ordinary course of business. $0.2 million recurring local

Wireless Infrastructure —Provided that colocation of a “small wireless facility” on a city or county owned utility pole in the right-of-way does not provide a basis for the imposition of an ad valorem tax on the authority utility pole. Indeterminate recurring local

Proposed Property Tax Constitutional Amendments

(Must still be approved by voters)

Extension of the Property Tax Assessment Cap for Non-Homestead Property — Proposed constitutional amendment to extend the current constitutional 10 percent assessment cap, which is slated to sunset in 2019. If the cap is allowed to expire, nonhomestead property will see very substantial tax increases. $688.1 million local recurring, beginning in FY 2019-20. (assumes current millage rates)

Increased Homestead Exemption —Proposed constitutional amendment to provide an additional $25,000 homestead property tax exemption for the value of a home $75,000 and $100,000. The implementing bill (already passed) provides that the rolled back rate used by local governments in FY 2019-2018 must be calculated as if the tax base not had been reduced by the increased homestead exemption. This would make it much more difficult to make up for the lost value by adjusting the millage rate.
$664.7 million local recurring, beginning in FY 2019-20 (assumes current millage rates)

Fee Reductions—State

STATE

Agriculture Fees —Various fee levied by the Department of Agriculture were reduced or eliminated.
$4.1 million recurring

Building Permit Surcharge —Reduces the surcharge from 1.5% to 1.0%. $2.9 million recurring ($0.3 million local)

Marriage License Fees —Eliminated $7.50 of the fee that went to the Displaced Homemaker Program which was repealed. $1.1 million recurring

Professional License Delinquency Fee —Set a flat rate delinquency fee of $25 (currently $25 to $260). $0.7 million recurring

Waived Various Professional Licensing Fees (for low-income persons, veterans, veterans’ spouses, and active duty military service members and their spouses and surviving spouses). $0.5 million recurring

Motor Vehicle Title Fees —There will be no fee for a certificate of title issued for a motor vehicle solely to remove the deceased co-owner from a title registered in the names of two persons if the other co-owner is the surviving spouse. $0.4 million recurring

Alcoholic Beverage License Fees —Eliminated some temporary license fees and reduced fees on craft distilleries. $0.4 million recurring

Vessel Registration Fees —The one year reduction in vessel registration fees for recreational vessels when the vessel is equipped a locating beacon that was passed last year was made permanent.
$0.3 million recurring

Eliminated Cosmetic Product Registration and Fees —$0.2 million recurring

License Registration Fees — Several license registration fees were eliminated, including ones related to motor fuels, commercial air carriers, natural gas retailers, paper sales tax return filers and dry cleaning. $0.2 million recurring

State Park Fees —Provided for foster families to receive family annual entrance passes at no charge and no charge on current base campsite fees at state parks. Adoptive families who adopt a special needs child are receive a one-time free family annual entrance pass. Insignificant recurring

Accountancy Fees —Exempted out-of-state CPA firms meeting certain requirements from acquiring a license to practice public accounting in Florida. Insignificant recurring

Birth Certificate Fee Waiver —Added certain juvenile offenders to the waiver of all fees required for a certified copy of a birth certificate issued for purposes of an offender acquiring a state identification card before release. Insignificant recurring

Fee Reductions—Local

Local Fees for Residences —Prohibited certain local government fees related to building inspection services, contractor-related licensure, local permitting, and water connections for a fire sprinkler system. $5.6 million local recurring (growing to $10.5 million in five years)

Transportation Network Companies —Prohibited local regulation of companies such as Uber and Lyft, including the imposition of any fees. The extent of existing fees was not known, but three cities collected more than $0.5 million total. Indeterminate recurring local

Wireless Infrastructure —Provided that the fee to collocate small wireless facilities on a local government owned utility pole in the right-of-way may not exceed $150 per pole annually. Indeterminate recurring local

Low-Voltage Alarm System Fee —Expanded the streamlined installation permitting process for low-voltage alarm systems, including capped fees, to include low-voltage electric fences and some ancillary components and equipment. Insignificant recurring local

New/Increased Fees

Postsecondary Distance Education —A new fee was created to pay for a new program that authorizes the state to participate in a reciprocity agreement with other states for the delivery of postsecondary distance education. The fee, which ranges from $1,500 to $4,500, is paid by each Florida institution that participates in a reciprocity agreement. $0.2 million recurring

Substance Abuse Service Provider Fees —Required minimum licensure and operating standards for substance abuse treatment facilities, as well as inspections by DCF. Fees were increased by 50% of the added regulatory cost. Indeterminate recurring

Tax Reductions - State

SALES TAX

Business Rent Tax – The sales tax on the rent, lease or license fee charged for commercial real property was reduced from 5.8 percent to 5.7 percent, effective January 1, 2019.  This followed a reduction from 6.0 percent to 5.8 percent last year.   Impact:  $31.0 million recurring (including $3.5 million local)

Sales Tax (Business Rent Tax) Credit Scholarship Programs – The Florida Sales Tax Credit Scholarship Program was created under the existing Florida Tax Credit Scholarship Program (FTC) to expand school choice and provide additional revenue for private school scholarships for low-income and foster children.  A taxpayer may receive a credit against the Business Rent Tax that is equal to his or her monetary contribution to the program. Contributions may be used for either the existing FTC program or the Gardiner Scholarship Program.  Total credits are capped at $57.5 million per year on a first-come, first-served basis.  Impact:  $57.5 million recurring (no local impact)

The Hope Scholarship Program (HSP) – HSP was created for students subjected to bullying, harassment, or certain misconduct in public schools. It provides the parent of a public school student subjected to an incident at school the opportunity to transfer the student to a public school within the school district, receive a scholarship to transport the student to a public school in another school district, or receive a scholarship for the student to attend a private school.  Under HSP a purchaser of a motor vehicle may take a credit of up to $105 for an eligible contribution made to a nonprofit scholarship-funding organization against any tax imposed by the state and collected from the purchaser by a dealer.   Impact:  $41.2 million recurring (no local impact)

Back to School Sales Tax Holiday – Established another 3-day period (August 3-5, 2018) during which certain items would be exempt from state and local sales taxes. The exempt items were: clothing, footwear, wallets and bags that cost $60 or less per item, and schools supplies costing $15 or less per item. Computers and accessories were not included in this year’s holiday.  Impact:  $32.7 million one-time (including $6.7 million local)

Agricultural Hurricane Recovery – To help agriculture with hurricane recovery expenses, a temporary sales tax exemption and refund system was created for materials used to repair fencing damaged by Irma and building materials to repair nonresidential farm buildings. Both exemptions applied from September 10, 2017 to May 31, 2018.    Impact:  $11.6 million one-time (including $2.4 million local)

Disaster Preparedness Sales Tax Holiday – Created a 7-day sales tax holiday ( June 1-7, 2018). The following items (and price limits) were exempt: portable self-powered light sources ($20) and radios ($50); tarps and waterproof sheeting ($50); ground anchor systems ($50); gas tanks ($25); batteries ($30), nonelectric coolers ($30); portable generators ($750); and reusable ice ($10).   Impact:  $5.8 million one-time (including $1.2 million local)

Electric Generators – A temporary exemption for generators used by nursing homes or assisted living facilities was enacted for purchases made between July 1, 2017 and December 31, 2018.  The exemption was limited to a maximum of $15,000 in tax for any one facility. Following the electrical outages after Hurricane Irma, the state required these facilities to purchase sufficient generators.  Impact:  $6.7 million one-time (including $1.4 million local)

Wholesalers of Recyclable Materials – “Recyclable Material Merchant Wholesalers” (NAICS code 423930) were added to the industries exempted from the tax on electricity or steam used to operate machinery. Roll-off containers purchased by these businesses were also exempted from sales taxes. These businesses engage in the merchant wholesale distribution of automotive scrap, industrial scrap, and other recyclable materials.    Impact:  $1.2 million recurring (including $0.2 million local)

Aquaculture – Sales tax exemptions were created for liquefied petroleum gas used in aquacultural equipment, electricity used in raising aquaculture products and in fish packinghouses, and machinery and equipment used in aquaculture, fish farming, and fish hatcheries.   Impact:  $0.2 million recurring (insignificant local)

CORPORATE INCOME TAX/VARIOUS TAXES

Tax Credit Scholarship Program – A number of changes were made to the programs providing tax credits for contributions to private school scholarships, including allowing taxpayers to apply for a credit to be used for a previous taxable year and increasing the carryforward of unused credits from five to 10 years.   Impact:  $10.0 million recurring

Community Contribution Tax Credit – Additional credits against the sales tax, corporate income tax and insurance premium tax of $2 million 2018-19 and $3 million in 2019-20 were provided for projects that provide homeownership opportunities for low-income households or persons with special needs. This was on top of the annual cap of $14.0 million for the CCTCP.  Most of the credits are used against sales tax liability.  Impact:   $5.0 million over two years  (including $1.0 million local)

Brownfields Tax Credit – A one-time, $8.5 million increase in corporate income tax credit authorization was provided in FY2018-19 to fund the backlog of tax credit applications. The normal cap on these credits is $10 million annually. These credits encourage site rehabilitation in brownfield areas and voluntary cleanup of certain other types of contaminated sites.   Impact:  $8.5 million one-time

DOCUMENTARY STAMP TAX

Spousal Homestead Transfers – An exemption was created for the transfer or conveyance of homestead property between spouses if the document is recorded within one year after marriage and the only consideration is the amount of a mortgage or other lien.  Impact: $1.5 million recurring

Loans issued by Local Housing Finance Authorities – An exemption was created for any note or mortgage given in connection with a loan made by or on behalf of a housing finance authority. The exemption does not apply to a deed financed by a housing finance authority.  Impact: $0.5 million recurring

Disaster Loans – An exemption for loans made by Florida Small Business Emergency Loan Program or the Agricultural Economic Development Program was enacted. Impact:   Indeterminate

FUEL TAX

Aviation Fuel Tax – Commercial carriers and all cargo air carriers received a 1.42 percent credit on their aviation fuel taxes, effective July 1, 2019. This effectively reduced the rate from 4.27 cents per gallon to 2.85 cents per gallon. The tax rate was already scheduled to be reduced from 6.9 cents to 4.27 cents on July 1, 2019.    Impact: $14.1 million recurring

Natural Gas Fuel – Provided for a 5-year delay of the imposition of fuel taxes on natural gas used in motor vehicles that would have otherwise gone into effect on January 1, 2019.  This fuel is currently exempt from taxation but was scheduled be taxed at 21 cents per motor fuel equivalent gallon, 15 cents of which would have been adjusted annually for inflation. Impact: $0.8 million recurring (including $0.2 million local)

Fuel Used for Agricultural Shipment after Hurricane Irma – A refund of state and local taxes imposed on motor and diesel fuel was provided for fuel that is used for the transportation of agricultural products from the farm to a facility used to process, package, or store the product. This refund of previously paid taxes applied to purchases made between September 10, 2017, and June 30, 2018.    Impact: $3.7 million one-time (including $1.2 local)

Exported Motor Fuels – An exemption from motor fuel taxes was created for certain terminal suppliers who resell motor fuel for immediate export from the state.   Impact:  Insignificant recurring

OTHER STATE TAXES

Truck License Taxes – The restriction that a truck only be operated within 150 miles of its home address to qualify for a lower-cost agricultural restricted license plate was be removed.  Impact: Insignificant recurring

Traffic Fines – A reduction of 9 percent was provided for fines for noncriminal traffic infractions if the person elects to attend driver improvement school, effective January 1, 2019.  Impact: $1.8 million recurring

Communications Services Dealers – The communications services tax (CST) rewrite in 2000 replaced several taxes, fees and charges that could be imposed on dealers of communications services for occupying roads and rights-of-way with a local CST.  These charges were therefore preempted by the state. In 2018, “security fund” was added to the list of charges that are preempted.  Impact: Indeterminate

Marketplace Contractors – The new law provided that a person that provides temporary household services through an on-line marketplace is considered an independent contractor, not an employee, for purposes of state and local laws. This clarified that they are exempt from workers’ and unemployment compensation taxes and local business taxes and fees. The exemption covers services such as local moving, furniture assembly, interior painting and home cleaning.   Impact:  $2.6 million recurring

Tax Reductions - Local

PROPERTY TAX

Hurricane Relief – Homestead Property – A property tax refund was provided for homes rendered uninhabitable for at least 30 days by Hurricanes Hermine, Matthew or Irma.  The refund was equal to the “damage differential” (percent difference in value multiplied by the percentage of the year the home was uninhabitable) multiplied by the amount of taxes levied in the year the hurricane occurred. This provision applied retroactively to January 1, 2016, and expires January 1, 2021. The state reimbursed fiscally constrained counties and Monroe County for lost revenue from this refund.  Impact: $13.0 million one-time

Hurricane Relief – Save Our Homes (SOH) Portability – Owners of the homestead property that was significantly damaged by a tropical storm or hurricane are allowed to keep their SOH benefit if they move to a new homestead by the end of the year following the storm. This applies to homestead property damaged or destroyed after January 1, 2017.   Impact:  $1.2 million recurring

Hurricane Relief – Citrus Processing Equipment – Equipment that is idle because of citrus greening or Hurricane Irma was assessed at no more than salvage value for the 2018 tax year only. The state reimbursed fiscally constrained counties for lost property tax revenue.  Impact:  $10.5 million one-time

Hurricane Relief – Agricultural Land – Allowed agricultural land that is not being used for agricultural purposes due to a hurricane in 2017 to continue to be classified as ag land for 5 years after being damaged by a natural disaster, unless the land is converted to non-agricultural use. Impact:   Indeterminate

Horticulture – Provided that screened enclosed structures used in horticulture production for pest exclusion, when consistent with state or federal eradication or compliance agreements, have no separately assessable value for purposes of ad valorem taxation.  Impact:  $2.0 million recurring

Multi-parcel Buildings – For property tax and non-ad valorem assessments, the just value of the land must be allocated among the parcels in the same proportion as the value of each parcel’s improvements. The value may not be separately assessed. The applies to non-homestead assessments that are based on the size or area of the land. For other assessments, each parcel will be assessed separately.   Impact:  Indeterminate

Surviving Spouses of Disabled Ex-Military Servicemembers – The requirement that spouses be married for at least 5 years on the ex-servicemember’s death in order to be entitled to the current $5,000 property tax exemption was eliminated.  Impact:  $0.1 million recurring

OTHER LOCAL TAXES

Local Business Taxes and Fees – An exemption was created for honorably discharged veterans and their spouses, unremarried surviving spouses of such veterans, spouses of active duty military servicemembers who have been relocated to the county or municipality due to a permanent change of station order, persons receiving public assistance and persons with a household income below 130 percent of the federal poverty level.   Impact:  $19.1 million local recurring

Fee Reductions - State

State Licensing Fees – Waivers for professional licensing fees for many occupations were granted for certain military members, veterans, and their spouses.  Included were occupations regulated by the Departments of Business and Professional Regulation, Agriculture and Consumer Services, Financial Services, Health, and Education.  Impact:  $2.9 million recurring (likely more because the impact on several of the licensing fees was indeterminate)

Health Care Facilities – The licensing of facility risk managers and clinical laboratory was eliminated, along with licensure application and renewal fees.  Impact: $2.0 million recurring

Driver Licenses Fees – Veterans were exempted from the Specialty Drivers License Fee ($2) and the Tax Collector Fee.  Impact: $0.1 million recurring 

Agricultural Fees – A number of fees charged by the Department of Agriculture and Consumer Services, were changed, reduced, or eliminated.  Impact:  Indeterminate recurring

Pharmacy Fees – Class III institutional pharmacy license holders were exempted from obtaining an additional DBPR permit to distribute medical drugs ($600 biennial fee) or to repackaged drug products ($1,500 biennial fee) between certain entities under common control. Hospitals that participate in the Section 340B Drug Discount Program were also from obtaining a Restricted Prescription Drug Distributor permit (600 biennial fee).   Impact: Insignificant recurring

Fee Reductions - Local

Driver Licenses Fees – Veterans were exempted from the Tax Collector Fee.  Impact: $0.4 million recurring 

Tuition Reductions 

Military Tuition Waivers – Florida colleges were authorized to waive any portion of specified fees that are not covered under the federal Military Tuition Assistance Program.  Impact:  Indeterminate

Excess Credit Hour Surcharge - State universities were required to refund the assessed excess credit hour surcharge, for up to 12 credit hours, to any first-time-in-college student who completes a baccalaureate degree program within 4 years after initial enrollment in a state university.   Impact: $1.3 million recurring

New Fees/Increased Fees - State

Weights and Measures - The Department of Agriculture and Consumer Services (DACS) imposes permit fees for weights and measures instruments in a range from $40 to $250, depending upon the type of device. Examples of these devices are gas pumps, scales, price scanners, and other commercial weighing and measuring devices.  The fees were scheduled to be repealed on July 1, 2020.  The 2018 legislature extended that repeal until July 1, 2025.   Impact:  $2.4 million annually for five years.

Liquefied Petroleum (LP) Gas – The LP license fee structure was revamped, resulting in a small increases in total revenue.  Impact:  Indeterminate

Court Fees - Filing fees and service charges were created for filing for an injunction for protection against exploitation of a vulnerable adult. Courts were also permitted to collect a fee from unencumbered assets during a temporary injunction.  Impact:  Indeterminate

Pharmacy Benefit Managers – PBMS were required to register with the Office of Insurance Regulation and pay registration and renewal fees, not to exceed $500.  Impact:  Insignificant 

Foreclosure Fees - Fees ($15) relating to foreclosure sales that result in a surplus and the appointment of surplus trustees were eliminated.  Impact: Insignificant

Tax Reductions - State

SALES TAX

Business Rent Tax – The sales tax on the rent, lease or license fee charged for commercial real property was reduced from 5.7 percent to 5.5 percent, effective January 1, 2020.  This followed a reduction from 5.8 percent to 5.7 percent last year.  The reduction/elimination of the BRT is a top Florida TaxWatch priority. Florida is only state that levies this tax, creating a government-mandated increase in occupancy costs of 8 percent, which creates a competitive disadvantage for Florida businesses.   Impact: $67.0 million recurring (including $7.7 million local)

Back to School Sales Tax Holiday – Established another 5-day period (August 2-6, 2019) during which certain items were exempt from state and local sales taxes. The exempt items were: clothing, footwear, wallets and bags that cost $60 or less per item, schools supplies costing $15 or less per item, and computers and accessories that cost less than $1,000.  Impact: $41.7 million one-time (including $9.9 million local)

Disaster Preparedness Sales Tax Holiday – Created a 7-day sales tax holiday (May 31- June 6, 2019). The following items (and price limits) were exempt: portable self-powered light sources ($20) and radios ($50); tarps and waterproof sheeting ($50); ground anchor systems ($50); gas tanks ($25); batteries ($30), nonelectric coolers ($30); portable generators ($750); and reusable ice ($10).  Impact: $5.5 million one-time (including $1.1 million local)

Donation to Charities – A sales and use tax exemption was provided for tangible personal property that is purchased tax exempt for resale by a dealer but whose purchase is subsequently donated to a tax-exempt entity.  Impact: $4.9 million recurring (including $1.2 million local)

Building Materials for Nonresidential Farm Buildings – As was previously done for Hurricane Irma, an exemption was provided for the purchase of certain building materials used to repair or replace nonresidential farm buildings that were damaged as a direct result of Hurricane Michael. The exemption was available through a refund of previously paid taxes and applies to purchases made between October 10, 2018, and June 30, 2019. The exempt building materials were broadly defined as tangible personal property that becomes a component part of a nonresidential farm building.  Impact: $0.1 million one-time (including an insignificant local impact)

Fencing Materials used in Agriculture - An exemption was created for the purchase of fencing materials used in the repair or replacement of agricultural fencing that was damaged as a direct result of Hurricane Michael. The exemption is available through a refund of previously paid taxes and applies to purchases made between October 10, 2018, and June 30, 2019.   Impact: $0.1 million one-time (including an insignificant local impact)

OTHER STATE TAXES

Doc Stamps - Spousal Homestead Transfers – Prior law provided an exemption from documentary stamp taxes for a deed or other instrument that transfers homestead property, or any interest therein, between spouses, if the only consideration is the amount of a mortgage or other lien encumbering the homestead property at the time of the transfer or conveyance, and the deed or other instrument is recorded within one year after the date of the marriage.  The 2019 Legislature removed the one-year limitation.  Impact:  $0.3 million recurring

Insurance Premium Tax - Florida Tax Credit Scholarship Program - Insurers were allowed the flexibility to apply for an allocation and/or make a contribution to the scholarship program for a given taxable year up until the date the insurer is required to file a return for that year.  The taxpayer was also allowed to apply the credit against any installment payment for the taxable year against which the credit is being taken, rather than only the installment payment following the contribution. This retroactive application against installment payments may reduce or eliminate penalties that would otherwise apply.  Impact: $1.1 million recurring

Insurance Premium Tax - Shared Savings Incentive – Any shared saving incentive amount provided by a health insurer to an insured as a return or reduction of premium reduces the insurer’s written premium for purposes of the Insurance Premium Tax.   Impact:  $0.4 million recurring

Fuel Tax – A refund was provided for fuel taxes used for agricultural shipment or hurricane debris removal after Hurricane Michael. The exemption was available through a refund of previously paid taxes and applied to purchases made between October 10, 2018, and June 30, 2019.  Impact: $0.3 million one-time

Tax Reductions - Local

PROPERTY TAX

Assessment of Agricultural Equipment Damaged by Hurricane Michael - Tangible personal property owned and operated by a farm or agricultural processing facility was deemed to have a market value no greater than its salvage value, provided the property was unable to be used in the operation of the facility for at least 60 days due to Hurricane Michael. This valuation was effective only for the 2019 tax 

Fee Reductions - State

Traffic Fines - The 2018 Legislature provide a 9 percent reduction in the civil penalty for a noncriminal traffic infraction if the person elects to attend driver improvement school.  The 2019 Legislature increase the reduction to 18 percent.  Impact: $1.9 million recurring

Engineering Fees - The fees collected by the Board of Professional Engineers for issuance and renewal of certificates of authorization for engineering businesses were eliminated. Impact:  $0.5 million recurring.

Background Checks - Court interpreters and mediator applicants were required to undergo a fingerprint based state and national criminal background check. The fee is $37.25.  Insignificant

Fee Reductions - Local

Impact Fees – Local governments were authorized to provide an exception or waiver for an impact fee for the development or construction of affordable housing.  It is estimated that a prohibition of impact fees on affordable housing would reduce revenue by $6.0 million annually, however the language is permissive, not mandatory. Impact:  Indeterminate

Tree Permit Fees - Many local governments have tree ordinances that, among other fees, require a permit prior to trimming or removing trees.  These fees were prohibited for residential property if the property owner obtains documentation from a certified arborist or landscape architect that the tree presents a danger to persons or property.  Impact:  $1.0 million recurring.

Right-of-Way Permit Fees –  A new exemption from permit fees charged by local governments for the use of right-of-way was provided to a person who does not remit communication services taxes imposed by a municipality or county, but “sells communications services for resale to a person who sells such services at retail or who integrates such services into communications services sold at retail in that municipality or county and who remits communications services taxes imposed by that municipality or county.”  This change excludes these “pass-through providers” from the fee that some jurisdictions levy for use of rights-of-way.   Impact: $0.3 million recurring

Building Inspection Fees – Local governments were prohibited from charging fees for building inspections if the owner hires a private provider. However, the local jurisdiction is authorized to charge a reasonable administrative fee.  Impact: Indeterminate

Tolls – Several changes were made to local toll charges in Miami-Dade County, including replacing the Miami-Dade County Expressway Authority (MDX) with the Greater Miami Expressway Agency (GMX) and creating a toll rebate program for GMX with the goal of rebating 25 percent of toll revenue to SunPass holders. GMX was also prohibited from increasing tolls rates until 2029.  (2022 Update: The repeal of MDX led to a court battle and DMX still exists and has paid some rebates.)  Impact: Indeterminate

Tuition Reductions 

Excess Credit Hour Surcharge - A student enrolled in a state university must pay a surcharge for taking credit hours in excess of those required to complete his or her baccalaureate degree program.  The excess credit hours threshold was increased from 110 percent to 120 percent of the number of credit hours required, reducing the surcharge students pay.   Impact:  $6.5 million recurring

Tuition and Fee Waivers - Survivors of deceased active duty servicemembers (including Florida National Guard members on federal active duty), deceased emergency medical technicians and paramedics, and deceased part-time firefighters were made eligible for waivers.   Impact:  $1.0 million recurring

Tax Reductions - State

SALES TAX 

Back-to-School Sales Tax Holiday – In what has become a perennial tax relief measure, a three-day sales tax holiday was held from August 7-9, 2020. During the holiday, clothing (including footwear, wallets and bags) that cost $60 or less were exempt from the state and local sales taxes. Also exempt were school supplies costing $15 or less and the first $1,000 of the sales price of personal computers and related accessories purchased for noncommercial home or personal use. This included tablets, laptops, monitors, input devices, and non-recreational software.    Impact:  $41.8 million one-time (including $9.5 million local)

Disaster Preparedness Sales Tax Holiday – A seven-day sales tax holiday was created from May 29 - June 4, 2020 for specified items related to disaster preparedness. The exempt items (and price limits) would be: portable self-powered light sources ($20); portable self-powered, two-way, or weather band radios ($50); tarps or other flexible waterproof sheeting ($50); ground anchor or tie-down kits ($50); gas or diesel fuel tanks ($25); packages of batteries, excluding automobile and boat batteries ($30); nonelectric food storage coolers ($30); portable generators ($750); and reusable ice ($10.    Impact:  $5.6 million one-time (including $1.3 million local)

Tax Reductions - Local

PROPERTY TAX

Save Our Homes Portability - The Legislature proposed an amendment to the Florida Constitution extending the period to transfer the Save Our Homes assessment limitation from a prior homestead to a new homestead by an additional year. As such, the SOH benefit can be transferred to a new homestead if the new homestead is established by January 1 of the third year subsequent to abandonment of the old homestead.  In November 2020, the amendment was approved by 74.5 percent of voters.  Impact:  $10.2 million recurring

Property Tax Discount for Disabled Vets’ Surviving Spouse - The Legislature proposed an amendment to the Florida Constitution to allow the current discount for combat-disabled veterans age 65 or older to carry over to the surviving spouse until he or she sells or otherwise disposes of the property. The discount may be transferred to the surviving spouse's new homestead property, if used as his or her permanent residence and he or she has not remarried.  In November 2020, the amendment was approved by 90 percent of voters.   Impact:  $4.0 million recurring

Affordable Housing Property Tax Exemption – Property used to provide housing to low-income persons is exempt from property tax if the property is owned by a not-for-profit corporation and the resident’s income is below the thresholds for extremely-low-, very-low-, low-, or moderate-income. Prior law provided if units that are vacant or are rented to persons whose income grew beyond the qualifying income thresholds did not qualify for the exemption. The new law exempted vacant units that are designated for affordable housing and provides that units do not lose their exemption if the occupant’s income grows beyond the qualifying income thresholds.  Impact:  Indeterminate recurring

Property Damaged by Hurricane Michael - For property damaged or destroyed by Hurricane Michael in 2018, the timeframe for starting hurricane repairs was extended from three years to five years.  Such changes or improvements shall not increase the assessed value of the property if the square footage of the property does not exceed 110 percent of the property before the damage or destruction, or if the square footage of the property, as changed or improved, does not exceed 1500 square feet. These provisions apply for tax years 2019-2023 and are repealed on December 31, 2023. Impact:  Indeterminate

Property Tax Exemption for Deployed Servicemembers - The Florida Constitution grants an exemption for military service members that have Florida homesteads and are deployed on active duty outside the United States. The military operations that qualify must be designated by the Legislature in statute. The proposal would add three operations to the list—Operation Juniper Shield, Operation Pacific Eagle, and Operation Martillo. Operation Enduring Freedom, which ended in 2014, is removed from the list. Impact:  Insignificant recurring

Fee Reductions - State

Professional Regulation and Licensing – A number of professions regulated by DBPR were deregulated, including hair braiders, body wrappers, nail polishers, makeup artists, and boxing announcers and timekeepers.  Labor organizations were partially deregulated. The additional business license required for architects, interior designers, landscape architects, and geologists was eliminated.  Impact: $1.4 million recurring

Registered Chiropractic Assistants - The statute that requires registration of RCAs (and $30 in fees) was repealed.   Impact:  $0.1 recurring

Health Care Clinics - Federally certified clinics were exempted from licensure.  In addition, two types of health care entities that had exemptions set to expire were also exempted permanently.    Impact:  $0.2 million recurring

Multiphasic Testing Centers – These centers were exempted from licensure. Impact:  $0.1 million recurring

Substance Abuse Services Licenses Fees - The following substance abuse service providers were exempted from licensure even if they contract with the DCF or a managing entity: A hospital or hospital-based component; a nursing home facility; an allopathic or osteopathic physician or physician assistant; crisis stabilization unit; and licensed psychologists, social workers, marriage and family therapists, and mental health counselors.   Impact: Insignificant recurring

Home Medical Product Seller License Fee - Certain physicians were exempted from home medical equipment provider licensure, unless they have a separate company that sells or rents home medical equipment.  Impact:  Insignificant recurring

E-bikes – New regulations governing the operation of electric bicycles (e-bikes) were created making them not subject to the financial responsibility requirements of a motor vehicle such as insurance premiums, driver or motor vehicle licenses, vehicle registration, title certificates, or off highway vehicles. The registration fee requirement for “motorized bicycles” was repealed.   Impact: Insignificant recurring

Fishing License Holidays – Added two additional days (totaling six) when people may fish in Florida (fresh or salt water) without buying a license. Annual licenses cost $17 for residents and $47 for nonresidents.  A three-day license is available for nonresidents for $17.   Impact: Insignificant recurring

Fee Reductions - Local

Impact Fees – Provided that new or increased impact fees may not apply to current or pending permit applications submitted before the effective date of a new or increased impact fee.  Impact fee credits were also made assignable and transferable at any time from one development to any other that is within the same or adjoining impact fee zone or district.  Impact: Indeterminate recurring

Food Trucks – Local regulation and licensure of food trucks was preempted by the state.  Impact: Indeterminate recurring

Tuition

Military College Credit and Transcript Fee Waivers - Transcript fee waivers were expanded by increasing the eligible pool and requiring intuitions to provide waivers. The eligible list will now include all active-duty members and honorably discharged veterans of the United States Armed Forces, their spouses, and their dependents.  Impact: Indeterminate recurring

Tax Increase - Local

Appellate Court Filing Fees – The jurisdiction over most appeals from county courts was changed from circuit courts to district courts of appeals.  One of the results was that local court revenue (clerks) decreased, state revenue increases, and it became more expensive to file an appeal ($400 compared to $281).    Impact:  State - $0.5 million recurring increase.  Local - $0.3 million recurring decrease. Net - $0.2 million increase

Insurance Premium Tax – Surplus lines insurance is for risks for which the Florida licensed market is unable or unwilling to provide coverage. The tax rate on surplus lines was reduced from 5 percent to 4.94 percent but eliminated the provision in statute that limited the tax on risk outside of Florida to the tax rate where the insured risk is located. The combination of the two provisions could result in a net revenue loss or gain.  This could either be a tax cut or a tax increase.  Impact: Indeterminate recurring

Tax Increase - Local

Reduced Property Tax Exemption for Non-Profit Hospitals – These hospitals have historically been 100 percent exempt from property taxes. The new law limits the hospital’s exemption to the value of the charity care it provides (as reported to the IRS). The net benefit must be less than the exemption for two consecutive years before the exemption is reduced and the effective date was January 1, 2022.  (note: this law was repealed in 2021).  Impact: Indeterminate recurring

Tax Reductions - State

RE-EMPLOYMENT TAX (UNEMPLOYMENT COMPENSATION)

Avoiding Pandemic Related UC Tax Increases - The Unemployment Compensation (UC) Trust Fund was decimated by job losses during the pandemic.  Replenishing the fund would have required employers to pay significantly increased UC taxes. Instead, using the increased revenue from the new e-fairness law, $507 million in FY 2021-22, and $90 million a month after that, would be deposited into the trust fund until the fund is replenished to pre-pandemic levels ($4.07 billion). This was estimated to occur in mid-July, 2024.    Further, UC tax rates will be calculated without the considering the impacts of the pandemic-related job losses.  Impact - $3 billion over three years

SALES TAX

Business Rent Tax – Two months after the UC Trust Fund is replenished (in approximately two to three years), the sales tax on commercial leases will be reduced from 5.5% to 2.0%, a long-time Florida TaxWatch recommendation.  Florida is the only state that levies the sales tax on business rents.  The rate reduction, expected to occur in late 2024, will produce $1.2 billion in annual tax savings.  Impact: $1.2 billion recurring (including $141 million local).

Back to School Sales Tax Holiday – Established 10-day period (July 31 - August 9, 2021) during which certain items were exempt from state and local sales taxes. The exempt items were: clothing, footwear, wallets and bags that cost $60 or less per item, school supplies costing $15 or less per item, and the first $1,000 of the sales price of computers and accessories for noncommercial uses.  Impact: $69.4 million one-time (including $16.0 million local)

Disaster Preparedness Sales Tax Holiday – Created a 10-day sales tax holiday (May 28 to June 6). This was the longest disaster tax holiday ever and the price limits for most of the exempt items were increased and one item was added. The exempt items: flashlights and portable light sources ($40); portable radios, including two-way and weather radios ($50), ground anchors or tiedown kits ($100), fuel tanks ($50), packages of batteries ($50), nonelectric coolers ($60), portable generators ($1,000) and reusable ice ($20). For the first time, portable power banks ($60) were exempt.   Impact: $10.5 million one-time (including $2.4 million local)

Freedom Week Sales Tax Holiday - Created a seven-day sales tax holiday (July 1 -7, 2021) for specified admissions and items related to recreational activities.  This includes admission to live music events, sporting events, movies, museum (including annual passes), state parks, ballets, plays, fairs, festivals, and physical fitness facilities.  Also exempt were supplies for the boating and water activities, camping, fishing, sports, and general outdoor equipment, such as bikes and helmets, sunscreen, bug spray, binoculars, water bottles and grills.  Impact: $53.8 million one-time (including $12.4 million local)

Sales Tax Rounding - The state switch from the outdated bracket system used to calculate the amount of sales tax due and replace it with the more taxpayer-friendly rounding system. The bracket system had resulted in consumers being overtaxed.  Impact: $22.9 million recurring (including $5.3 million local)

Car-Sharing Programs - In addition to establishing insurance and operational requirements for car-sharing programs, it was clarified that the sales tax applies to these programs and a reduced of $1 per day rental car surcharge is imposed on a rental or lease of less than 24 hours.  Impact: $16.6 million recurring (including $3.3 million local)

Sales Tax Exemption for Independent Living – Provided an exemption for items used by the elderly or disabled that help them live independently. The exempt items (and sales price limits) are bed transfer handles ($60), bed rails ($110), grab bars ($100), and shower seats ($100). Impact: $3.8 million recurring (including $0.9 million local) 

Extend Data Center Sales Tax Exemption – The 2017 Legislature enacted a sales tax exemption for property purchased, rented, or leased by a data center’s owners and tenants when used to construct, maintain, and operate computer server equipment at a data center. The data center must make a cumulative capital investment of $150 million by June 30, 2022. No data center has applied for the exemption. In 2021, the Legislature provided a 5-year extension of the deadline. Impact: $1.4 million recurring (including $0.3 million local) 

Sales Tax Absorption – Retailers are now allowed to advertise that they will pay all or any part of the applicable sales tax on behalf of the purchaser or refund the sales tax for the purchaser. Impact:  Indeterminate recurring

TAX CREDITS – VARIOUS TAXES

New Worlds Reading Initiative Tax Credit - In order to fund the newly created New Worlds Reading Initiative, businesses that make monetary donations to the program may receive a dollar-for-dollar credit against the corporate income tax; insurance premium tax; severance taxes on oil and gas production; alcoholic beverage taxes; or self-accrued sales tax liability of direct pay permit holders.  The annual cap for all tax credits under the initiative was $10 million for FY 2021-22, $30 million for FY 2022-23, and $50 million for each following fiscal year.     Impact:  $50.0 recurring

Brownfields Tax Credit - A one-time increase in the annual cap on the corporate income tax credit for voluntary cleanup of contaminated sites from $10.0 million to $27.5 million.  Impact: $17.5 million one-time

Strong Families Tax Credit Program - This would provide dollar-for-dollar tax credits for businesses that make monetary donations to eligible charitable organizations that provide services focused on child welfare and well-being. The tax credit can be taken against the corporate income tax, insurance premium tax; alcoholic beverage tax, severance taxes on oil and gas production; self-accrued sales tax liability of direct pay permit holders. Organizations must be Florida 501(c)(3) nonprofits and must apply to the Department of Children and Families for designation. Organizations must spend 100% of the funds on the direct provision of the specified children’s services and cannot receive more than 50% of their annual revenue from the DCF. The credits are capped at $5 million annually.   Impact: $5.0 million recurring

Internship Tax Credit Program - The Florida Internship Tax Credit Program was created to authorize a state corporate income tax credit of $2,000 for each student intern employed by a qualified business, up to a maximum of $10,000 in any taxable year.  A “student intern” is defined as a person who has completed at least 60 credit hours at a state university or college; is enrolled in a career center operated by a school district or charter technical career center; or any graduate student enrolled at a state university. The business must also have continuously operated for at least three years and show that at least 20 percent of the business’s full-time employees were previously employed by that business as student interns.  If the business has ten or fewer full-time employees, it must have employed on a full-time basis at least one employee who was previously employed by the business as a student intern. There is a cap on total credits of $10,000 per business and $2.5 million for the entire program.  Impact:  $2.5 million annually for two years 

OTHER TAXES

Documentary Stamp Tax - Provided that a modification of an original document which changes only the interest rate and is made as the result of the discontinuation of an index to which the original interest rate is referenced is not a renewal and is not subject to the documentary stamp tax. The Board of Governors of the Federal Reserve, the Comptroller of the Currency, and FDIC issued a statement encouraging banks to cease entering into new contracts that use the London Interbank Offered Rate (LIBOR) as a reference rate by December 31, 2021. Several trillion dollars of loans and mortgages in the U.S. reference LIBOR. This would assure that if a loan document is modified to change its referenced interest rate, the new document would not be taxable. Impact:  Indeterminate recurring

Tax Reductions - Local

PROPERTY TAX

Property Tax exemption for Flood Damage Resistance - The Legislature is bringing a proposed constitutional amendment to the voters that would provide that any change or improvement to residential real property made to improve the property’s resistance to flood damage may not be considered the determination of the assessed value of real property for property tax purposes.  This is the same tax treatment as currently applied to wind resistance improvements.  Florida voters still must approve this amendment in the November 2022 General Election.   Impact (if passed):  $25.1 million recurring

Affordable Housing Property Tax Exemption – Increased the 50 percent property tax discount for affordable housing to 100%.  This exemption applies to multifamily projects that provide housing to extremely-low-income, very-low-income, or low-income families. The discount begins on January 1 of the year following the 15th year of such an agreement. Impact: $22.8 million recurring

Exemption for House of Worship Educational Property - Provided that property owned by a house of public worship and used by an educational institution for educational purposes limited to students in preschool through grade 8 shall be exempt.  There were some court cases pending so the impact was higher in the first year.     Impact: $7.6 million one-time, $0.5 million recurring

Exemption for Educational Property – Provided that property used exclusively for educational purposes shall be deemed owned by an educational institution if the educational institution that currently uses it for educational purposes is an educational institution, and, under a lease, the educational institution is responsible for any taxes owed and for ongoing maintenance and operational expenses for the land, buildings, and other improvements.   Impact:  $0.6 million recurring

Repeal of Reduced Property Tax Exemption for Non-Profit Hospitals – Despite only being passed one year earlier (2020), the law limiting a hospital’s exemption to the value of the charity care it provides was repealed.   These hospitals now longer must report to the state in order to receive their full exemption.  Impact:  indeterminate recurring

Property Destroyed by Calamity – Clarified that ancillary improvements that are destroyed by storms or other calamities may be replaced and retain the taxable value assigned to those improvements prior to being destroyed. This change treats ancillary improvements the same as other property is treated under current law. These changes, while remedial and clarifying in nature, may not affect any assessment for tax rolls before 2021 unless the assessment is under review by a value adjustment board or a Florida court as of July 1, 2021.  Impact: Indeterminate recurring

Homestead Property Change of Title - Two instances were added when title to homestead property may change without the property being reassessed at just value: when the title change is only to remove an owner or owners who held title as joint tenants with rights of survivorship with the owner who remains on the title; and when the title change is only to remove a deceased person. Impact: insignificant recurring

Fee Reductions - State

Construction Contracting - The $4 annual fee for all construction contracting certificate holders and registrants was repealed. Impact: $.15 million recurring.

Cosmetic manufacturers - Cosmetic manufacturers with annual gross sales of $25,000 or less were exempt from the $800 (two-year) permit.  Despite the high permit cost, very few small manufacturers were currently paying the fee.  Impact: insignificant recurring

Criminal Record Expunction Fees - Clerks of court were prohibited from charging any fee for a petition filed for the expunction of a criminal history record of an offense committed by a person who is a victim of human trafficking.  Impact: insignificant state and local

Building Inspections – A new 10 percent refund of permit and inspection fees was required if a permit holder fails an inspection but the inspector or building code administrator, within 5 business day, does not provide the permit holder or his or her agent with a reason for why the work failed the inspection. This has an insignificant impact on both state and local revenue.   Impact: indeterminate state and local   

Fee Reductions - Local

Local Occupational Licensing – The Legislature preempted occupational licensing to the state except as specifically authorized in state law. This preemption supersedes any local government licensing requirement of occupations except for local licensing for an occupation that was imposed before July 1, 2021. However, any such local licensing expires on July 1, 2023.  Further, the law specifies that a local government may not require a license for a person whose job scope does not substantially correspond to a contractor category licensed by the CILB. The bill also specifically precludes local governments from requiring a license for certain job scopes, including, but not limited to, painting, flooring, cabinetry, interior remodeling, handyman services, driveway or tennis court installation, decorative stone, tile, marble, granite, or terrazzo installation, plastering, stuccoing, caulking, canvas awning installation, and ornamental iron installation.  An indeterminate negative impact was adopted, it was noted that the impact is a significant reduction in local licensing fees. Miami-Dade County and Palm Beach County estimate that those two counties alone will experience a reduction over $4.7 million.   Impact: indeterminate (but significant)

Impact Fees - Multiple changes were made to impacts fees. Impact fee increases imposed by a local government, school district, or special district were limited to no more than 50 percent and not more than once every four years.  Further, any increase of up to 25 percent must be phased-in in two equal annual installments.  Any increase between 25 percent and 50 percent requires a four-year phase-in.  Impact fees are prohibited from being increased retroactively.  Local governments can bypass the limitations by meeting certain statutory requirements.  Impact: indeterminate recurring

Pole Attachment Fees - Municipal electric utilities, through July 1, 2024, were required to offer broadband service providers a discounted rate of $1 per attachment per year for any new pole attachment necessary to make broadband service available to unserved or underserved consumers.  The utilities were also prohibited from increasing pole fees for one-year.  The average pole attachment fee is Florida is approximately $18 per pole.  Impact: indeterminate 

Cottage Food Permits – Cottage food operations allow a person to use their home kitchen to produce foods that can be sold from their residence, at a limited number of locations (such as a farmers market), or through a website.  Prior to this new law, operations with less than $50,000 is annual sales are exempt from having to obtain a $200 permit.  The sales threshold was increased to $250,000, meaning fewer cottage food operators have to obtain a permit.  Impact: insignificant recurring

Tuition Reductions 

Tuition Waivers – Three new waiver programs for universities were created/expended.  A “buy one, get one free” program for students enrolled in courses in one of eight programs of strategic emphasis (STEM), gets another one waived.  The “Free Seat Program” gives a free online class and a 25 percent discount on others to nontraditional students (have not been enrolled in five years), veterans and active-duty members of the military and active drilling members of the Florida National Guard. Both programs are only available to Florida residents.  The “Grandparent Waiver Program” waives the out-of-state fee for top-performing out-of-state students who have a grandparent that is a legal Florida resident.  The Legislature appropriated $25 million in recurring funding to universities to mitigate revenue losses for “buy-one-get-one” programs.  Impact:  $29.4 million recurring

Fee Increases - State

Motor Vehicle Criminal Offenses Surcharge - Extended the $3 surcharge on several motor vehicle criminal offenses and all nonmoving traffic violations. This surcharge, implemented to fund the new Law Enforcement Radio System, was set to expire July 1, 2021.  It was extended for five years.  Impact: $8.4 million annually for five years (including $4.2 million local)

Tax Reductions - State

MOTOR FUEL TAX

Gas Tax Holiday – For the month of October 2022, the Florida Motor Fuel Tax Relief Act of 2022 will reduce the tax on motor fuel by 25.3 cents per gallon.  The state is using $200 million in federal State Fiscal Recovery Fund aid to replace the lost transportation revenue.   Impact: $214.1 million one-time (including $14.6 million local)

SALES TAX

Back to School Sales Tax Holiday – Established 14-day period (July 25 - August 7, 2022) during which certain items were exempt from state and local sales taxes. This is the longest and most generous sales tax holiday yet, with increased price limits.  The exempt items:  clothing, footwear, wallets and bags that cost $100 or less per item, school supplies costing $50 or less per item, and computers and accessories for noncommercial uses that cost $1,500 or less.  For the first time, jigsaw puzzles and learning aids (flash cards, blocks, memory games, puzzle books, interactive or electronic books and toys intended to teach reading or math skills) that cost $30 or less were included in the holiday for the first time.  Impact:  $100.1 million one-time (including $22.8 million local)

Freedom Week Sales Tax Holiday – After created the first one in 2021, the Legislature enacted another seven-day sales tax holiday (July 1 -7, 2022) for specified admissions and items related to recreational activities.  This includes admission to live music events, sporting events, movies, museum (including annual passes), state parks, ballets, plays, fairs, festivals, and physical fitness facilities.  Also exempt were supplies for the boating and water activities, camping, fishing, sports, and general outdoor equipment, such as bikes and helmets, sunscreen, bug spray, binoculars, water bottles and grills. This was generally the same as last year, except for pool supplies being included.  Impact:  $70.6 million one-time (including $16.1 million local)

Disaster Preparedness Sales Tax Holiday – Created a 14-day sales tax holiday (May 28 to June 10). This was the longest disaster tax holiday ever and the price limits for most of the exempt items were increased and one item was added. The exempt items: flashlights and portable light sources ($40); portable radios including two-way and weather radios ($50), tarps ($100), ground anchors or tiedown kits ($100), fuel tanks ($50), packages of batteries ($50), nonelectric coolers ($60), portable generators ($1,000), reusable ice ($20), and portable power banks ($60) were exempt.   For the first time, smoke and carbon monoxide detectors and fire extinguishers ($70) were included.  Also exempt for the first time were supplies needed for the evacuation of pets, including carriers and kennels, food, leashes, cat litter, pet beds, and hamster and rabbit substrate.  Impact:  $25.6 million one-time (including $5.8 million local)

Tools Time sales Tax Holiday – A new addition to Florida’s tax holiday menu was a seven-day holiday (September 3-9, 2022) for tools and equipment generally used by skilled workers. needed in skilled trades – 7 days.  This holiday is exempting power and had tools, tool boxes, shop lights, work clothing, industry textbooks, pipe cutter, electrical testing equipment, and other items.  Impact:  $12.4 million one-time (including $2.8 million local)

Temporary Sales Tax Exemptions

• Impact-resistant windows, doors, and garage doors for residential properties – 2 years.  Impact:  $442.8 million over two years (including $100.9 million local).
  
• Baby and toddler clothing, shoes, and diapers – 1 year.  Impact: $81.5 million (including $18.6 million local).   
  
• ENERGY STAR certified refrigerators ($3,000 or less), water heaters and washers/dryers ($1,500 or less) – 6 months.  Impact: $78.5 million (including $17.9 million local).
  
• Children’s books – 3 months. Impact:  $3.3 million (including $0.8 million local).
  

Permanent Sales Tax Exemptions

Mobile Homes - Reduced the tax rate on new mobile homes from 6% to 3%. Impact:  $17.2 million recurring (including $0.2 million local)

Sporting Events - Admissions to several sporting events have been exempted from sales taxes, including NFL championships, the NCCA basketball Final Four, and All-Star games and related events.  This year, three more events were granted permanent exemptions.  The FIFA exemption has a “$0 to indeterminate” impacts because there are currently no Word Cup matches schedule in Florida.  If a Florida city is chosen, the impact is estimated at $8.0 million.

Formula One Grand Prix races – Impact: $5.8 million recurring ($1.3 million local)

Daytona 500 races – Impact: $6.0 million recurring (including $1.4 million local)

FIFA World Cup matches – Impact: $0 to indeterminate state and local

Agricultural Exemptions - Eliminated the requirement that a trailer be less than 12,000 pounds to receive the existing sales tax exemption and removed the $20,000 cap on the exempt value. All trailer purchased by a farmer and used exclusively for agricultural purposes are now totally exempt. New exemptions were added for hog wire and barbed wire fencing, including gates and materials used in their construction.  Impact: $16.3 million recurring (including $3.4 million local)

Green Hydrogen – Green hydrogen is hydrogen that is produced through a process called electrolysis using renewable energy. This can result in zero greenhouse gas emissions, but the process is capital intensive. Green hydrogen can be used for: replacing natural gas in some heating systems; an alternative fuel source; powering fuel-cell vehicles; energy storage; and oil refining, ammonia production, and steel making. The bill would exempt the sale of green hydrogen and machinery and equipment used to produce, transport, compress, or blend green hydrogen or ammonia derived from green hydrogen. It also exempts machinery and equipment used to produce electric or steam energy from burning hydrogen and hydrogen used as fuel in manufacturing, processing, compounding, or production. Impact: $0.3 million recurring (including $0.1 million local)

TAX CREDITS – VARIOUS TAXES

Strong Families Tax Credit – This program, created in 2021, provides corporate income tax credits for businesses that make donations to certain eligible charitable organizations that provide services focused on child welfare. The tax credit can be taken against the corporate income tax, insurance premium tax; alcoholic beverage tax, severance taxes on oil and gas production; self-accrued sales tax liability of direct pay permit holders. The cap on total credits was increased from $5 million to $10 million.  Impact: $5.0 million recurring

Community Contribution Tax Credit Program – The annual cap on total credits was increased from $14 million to $19 million. For projects that provide affordable housing for low-income and very low-income households or for persons with special needs, the cap was increased by $4 million, from $10.5 million to $14.5 million. All other projects get the other $1 million increase. This credit can be applied to sales taxes, corporate income taxes, and insurance premium taxes.   Impact: $5.0 million recurring

New World Reading Initiative Tax Credit – Created last year, this program provides tax credits for businesses that make donations to a literacy program that provides books to elementary school students in Florida who read below grade level. In 2022, the cap was increased from $50.0 million to $60.0 million, beginning in FY 2023-24.   Impact:  $10.0 million recurring

Short-line railroads – Provided a new CIT credit for Class II and Class III railroads that invest in improving or maintaining tracks in Florida. The credit is equal to fifty percent of the investment in Florida in the prior calendar year and is limited to the total number of miles the railroad owns or leases in Florida multiplied by $3,500. Unused credits can be carried forward.  Impact: $6.9 million recurring

DOCUMENTARY STAMP TAXES 

Federal Loans – Provided an exemption for any federal loan that is related to a state of emergency declared by the Governor. This was a recommendation of the Florida TaxWatch COVID19 Taxpayer Task Force.  Impact: indeterminate

Tax Reductions - Local

PROPERTY TAX

New Homestead Exemption – The Legislature is bringing proposed constitutional amendment to the ballot in November, asking voters to approve a new $50,000 homestead exemption for "teachers, law enforcement and correctional officers, firefighters, emergency medical technicians, paramedics, child welfare professionals, active duty military and National Guard members." The amendment would exempt the value of a home between $100,000 and $150,000 and would not apply to school levies. With the two homestead exemptions currently available, homeowners would still be taxed on the value between $25,000 and $50,000, between $75,000 and $100,000, and anything over $150,000. Florida voters still must approve this amendment in the November 2022 General Election.   Impact (if passed):  $85.9 million recurring

Increased Exemption - An exemption of at least $500 is currently authorized by the Florida Constitution for widows, widowers, blind persons, or totally and permanently disabled. In 2022, the exemption was increased from $500 to $5,000.   Impact: $46.7 million recurring

Modified Assessment of Aquaculture Property - For the purposes of the income methodology approach to assessment of aquacultural property, structures and equipment located on the property used for producing aquacultural products are now considered a part of the average yields per acre and have no separately assessable contributory value.  Impact: $7.5 million recurring

Other Catastrophic Events - A pro-rated refund of property taxes was provided for residential properties rendered uninhabitable by a catastrophic event for at least 30 days. The residential dwelling can be homestead properties or nonhomestead properties with a residential unit count of nine or fewer, not including the value of the land or special features.  Impact: $5.0 million recurring

Affordable Housing - Multifamily property with more than 70 units provided for affordable housing receive a full exemption from ad valorem taxation. The exemption begins the January 1st after the 15th year of a term of a recorded agreement with the Florida Housing Finance Corporation and requires more than. The new law provides other alternative dates for the exemption to begin. The exemption now begins 15 years after the earliest of three dates:

• The effective date of the recorded agreement with the Florida Housing Finance Corporation,
  
• The first day of the first taxable year in which the property was placed in service as an affordable housing property, or
  
• The date such property received a certificate of occupancy, or certificate of substantial completion, as applicable, and could be used to provide affordable housing.
  
• Impact: $2.8 million recurring
  

Unforeseen Collapse - Abatement of all property taxes and non-ad valorem assessment was provided for owners of property destroyed by unforeseen collapses. The building must be a multistory residential building consisting of at least 50 dwelling units. If the building is destroyed due to a sudden and unforeseen collapse, property owners are eligible for an abatement of all property taxes in that year. No payment is required, the property appraiser may not issue notices, the tax collector may not issue a tax notice, and VABs must dismiss all petitions.  The new law is retroactive to January 1, 2021 to cover the collapse of the Champlain Towers South in Surfside.  Impact: $0.8 million first year, then indeterminate)

Homestead Exemption on Classified Use Property – Provided that the homestead exemption applies to those portions of property contiguous to the homestead, regardless of a “classified use” assessment. Certain “classified use property,” such as agricultural land, is assessed based on its current use, rather than the “highest and best use” of the property.  Impact: $0.2 million recurring

Fee Reductions - State

Certificate of Title - Surviving Spouse – The Department of Highway Safety and Motor Vehicles and local tax collectors may not charge any fee or service charge, except for the expedited title fee, for a certificate of title issued for a motor vehicle solely to transfer the title from a deceased spouse’s name to the surviving spouse’s name.   Impact:  $3.0 million recurring (including $0.2 million local)

Identification Cards - A person who is 80 years of age or older and whose driving privilege is denied due to failure to pass a vision test is now eligible to receive an original identification card at no charge. The applicant is exempt from the $25 fee for an original, renewal, or replacement ID card if the applicant presents a valid Florida Voter’s registration card and attests that he or she is experiencing a financial hardship.   Impact:  $0.9 million recurring (including $0.2 million local)

Service Of Process – “Service of process” refers to the delivery of legal notice to an individual or entity which provides notice of a pending legal action. The Department of State is now allowed to accept substituted service of process by electronic means and the $8.75 fees was eliminated. Impact: $0.1 million recurring

Birth Certificate Fee Waiver - The fees associated with obtaining a copy of a birth certificate were waived for certified unaccompanied homeless youth and young adults who aged out of foster care.  Impact:  insignificant recurring

Criminal Conflict and Civil Regional Counsels - The waiver that previously applied to public defenders now also applies to each Office of Criminal Conflict and Civil Regional Counsel, allowing them to request criminal history information without having to pay the $24 fee.  Impact:  insignificant recurring

Fee Reductions - Local

Building Inspections - A local government may not charge a fee for building inspections when an owner or contractor uses a private provider but may charge a “reasonable administrative fee.”  The Legislature restricted the “reasonable administrative fee” that the local government can charge. The charge must be based on the labor cost and/or the clerical and supervisory assistance required by the local jurisdiction.  Impact:  indeterminate recurring

Tuition Reduction

Disabled Veteran Tuition Waiver – Veterans with a service-connected 100 percent total and permanent disability that do not qualify for the full 100 percent federal waiver are now eligible to receive a supplemental disbursement equal to the difference between the portion of tuition and fees paid under federal law and the full amount of tuition and fees needed to attend a given institution.  The veteran must be enrolled in a state university, college, career center operated by a school district, or charter technical career center.   Impact:  $0.1 million recurring