9 Actions Florida Should Take to Help Taxpayers Impacted by Hurricane Ian

1.     Postpone tax notices and waive penalties or interest for late tax filings in affected areas

2.     Extend the date for residents to take advantage of the tax discounts they would normally receive for paying property taxes and special assessments in November and postpone or defer the deadline for property tax installment payments

3.     Protect individual and business taxpayers from the risks for notices that they will likely not receive because their home or business addresses is not accessible anymore

4.     Issue no new audits in severely impacted areas, extend the statute of limitations and postpone existing audits that haven’t reached the assessment stage because these can’t be responded to while entire communities are still recovering

5.     Create procedures for fairly estimating taxes which can’t be calculated because records have been destroyed by the storm, moving away from the current method which significantly overestimates activity if no records are available

6.     Initiate procedures to offer payment plan assistance for late taxes, rather than resorting to the standard collection methods, like liens, levies, or bank freezes

7.     Retroactively apply the recently passed law that provides property tax refunds for residential property rendered uninhabitable as a result of a catastrophic event

8.     Provide tangible personal property relief and allow n on-residential properties rendered uninhabitable to receive property tax refunds

9.     Get Congress to pass a Disaster Tax Relief Act that includes provisions from past packages, including elements such as an Employee Retention Credit, an enhanced casualty loss deduction, and other relief provisions

Other Resources

Florida TaxWatch Statement on Hurricane Ian Recovery

Community Involvement

2022 Economic Preview - Settling Into the New Normal

IT WAS NOT LONG AGO THAT FLORIDA WAS TURNING THE PAGE FROM A TUMULTUOUS 2020 and preparing for a much-awaited economic rebound throughout 2021. The advent of three safe and effective vaccines aided the recovery as COVID-19 cases declined and jobs steadily returned, but by mid-year, the highly-infectious Delta variant thwarted expectations for a seamless path forward, reminding everyone that the future was still very unpredictable. The recent emergence of the Omicron variant has only reinforced this sense of uncertainty for many people.

As COVID-19 enters its third year, Florida’s economic outlook is settling into a new normal—one defined by advancing job growth, punctuated by lingering challenges with labor shortages, supply chains, and inflation. For Floridians making sense of the future uncertainty, the issue is no longer just about returning to pre-pandemic trends and traditions, but rather adapting and settling into a new normal way of life.

For the overall Florida economy, real Gross State Product (GSP)—a measurement of state output and a general barometer for assessing economic health—is steadily rising due to higher levels of economic activity. Official state estimates forecast that GSP will reach a 4.5 percent annual growth rate in 2022 before tempering down to a more characteristic 2.5 percent over the subsequent years. The higher than average GSP growth for next year speaks to the tremendous decline in economic activity that occurred early on, pent-up demand among consumers, and Florida’s “open for business” strategy.

Reflecting general labor market conditions, Florida’s unemployment rate is anticipated to fall to 3.5 percent in 2022, somewhat approaching the pre-pandemic record of 3.1 percent set in 2019. Since some individuals may inevitably leave the labor force and therefore are not reflected in official unemployment rates, it is also worth looking at figures describing labor force participation. Based on estimates, Florida’s labor force is expected to climb by 2.9 percent in 2022 as more individuals gradually return to the labor force.

Anecdotally, many Floridians are witnessing the general improvements in the broader economy as leisure travel picks back up, spurring attendance at concerts, sporting events, and other gatherings across the state. Rebounding tourism has also brought many people back to the Sunshine State’s natural amenities and theme parks. Many regional real estate markets are attracting new residents to the state due to increased remote work. In response, many local businesses are capitalizing on the twin benefit of returning tourists and new residents.

For Florida’s economic outlook in 2022, projections are that employment will rise by 4.3 percent or about 379,500 additional jobs, and the state unemployment rate will decline to 3.5 percent. Job growth will lead in areas like Leisure & Hospitality but lag behind in Retail Trade. Personal income growth is also projected to rise by 1.5 percent next year; however, how this translates into increased consumer spending will be affected by how much inflation undermines consumer confidence. Next year, inflation is expected to rise by around 2.2 percent if supply chain and labor issues turn out to be truly transitory.

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