Disaster sales tax holiday clears first committee despite revenue squeeze

Hurricane_Preparedness_Sales_Tax_Holiday_0_43509984_ver1.0_1280_720
Joe Gruters wants an 17-day break to prep for storms tax-free.

Despite concern over a revenue shortfall driven by the pandemic, a Senate committee on Monday unanimously supported a tax holiday.

The Commerce and Tourism Committee voted 11-0 to advance legislation (SB 734) that would provide a 17-day period when no sales tax will be assessed on disaster preparedness supplies.

Bill sponsor Sen. Joe Gruters said the fact COVID-19 continues to grip the state economically makes the relief all the more important.

“We are in the middle of a crisis and if disaster hits it can make our situation much worse,” he said. “This will allow Floridians to prepare ahead of time as we head into the upcoming storm season.”

The holiday, as proposed, would run from May 28 to June 13, overlapping with the June 1 start of hurricane season. The bill would appropriate more than $70,000 to the general revenue fund, though the full economic cost of a sales tax holiday this has not been calculated by the Revenue Estimating Conference yet.

This wouldn’t be the first time the state held a sales tax holiday to encourage citizens to prep for storms, and sales tax holidays often prove popular among the public. Gruters ran a similar bill in the 2020 Legislative Session, with the House companion ultimately signed by the Governor. Officials last year, incidentally, estimated that would deliver a $20.7 million hit to sales tax revenues but that was before the pandemic struck.

But despite the loss of revenues as a result of reduced spending in the pandemic, Gov. Ron DeSantis this year included both the disaster preparedness sales tax holiday and a similar one for back-to-school shopping in his own budget.

The legislation as written would only offer a cut on taxes to a limited list of supplies, including lights and batteries, tarps, personal radios, fuel tanks, coolers and a few other specified items. It would cover some bigger ticket goods like power generators costing $750 or less and impact-resistant doors and windows, which must be purchased by residential home owners for use at their own property.

From here, Gruters’ bill heads to the Senate Finance and Tax Committee, then to Appropriations. There still hasn’t been a House companion bill filed.

Jacob Ogles

Jacob Ogles has covered politics in Florida since 2000 for regional outlets including SRQ Magazine in Sarasota, The News-Press in Fort Myers and The Daily Commercial in Leesburg. His work has appeared nationally in The Advocate, Wired and other publications. Events like SRQ’s Where The Votes Are workshops made Ogles one of Southwest Florida’s most respected political analysts, and outlets like WWSB ABC 7 and WSRQ Sarasota have featured his insights. He can be reached at [email protected]


One comment

  • Sonja Fitch

    February 17, 2021 at 4:08 am

    Another reasonable Bill.

Comments are closed.


#FlaPol

Florida Politics is a statewide, new media platform covering campaigns, elections, government, policy, and lobbying in Florida. This platform and all of its content are owned by Extensive Enterprises Media.

Publisher: Peter Schorsch

Contributors & reporters: Phil Ammann, Jason Delgado, Drew Dixon, Renzo Downey, Rick Flagg, A.G. Gancarski, Joe Henderson, Janelle Irwin, Ryan Nicol, Jacob Ogles, Scott Powers, Andrew Wilson, and Kelly Hayes.

Email: [email protected]
Phone: (727) 642-3162
Address: 204 37th Avenue North #182
St. Petersburg, Florida 33704