State Sen. Annette Taddeo is filing legislation that would allow small businesses to opt out of collecting sales tax as a way to boost business in the post-Thanksgiving shopping rush.
The sales tax holiday would apply for one day on the Saturday following Thanksgiving, which is known as “Small Business Saturday.”
But Taddeo’s legislation (SB 1052) would offer a financial incentive to Floridians as well.
According to the bill’s language, stores would not be required to forego collecting the sales tax. But for those who do, they’ll be able to offer an effective discount to shoppers, who will see a 6% price cut when they hit the stores.
Taddeo says she’s hoping her bill will help support the effort to ensure small businesses aren’t left behind during the holidays.
“It has grown in certain cities and counties across the U.S.,” Taddeo said of the push to encourage Small Business Saturday.
“But I’d like to encourage more local small business shopping by making Small Business Saturday a tax-free holiday.”
The holiday would only be effective for next year, allowing the bill to serve as sort of a test run. The sales tax holiday would be in effect from 12:01 a.m. on Nov. 28, 2020 until 11:59 p.m. on Nov. 28.
Taddeo’s measure would also allot $200,000 in nonrecurring funds from the General Revenue Fund to the Department of Revenue to cover the costs associating with foregoing the sales tax.
To qualify as a “small business,” a dealer must have paid less than $200,000 in total tax to the state for the one-year period prior to Sept. 30, 2020.
The sales tax holiday will have its limits, however. The exemption will only apply to items having a sales price of $1,000 or less.