House package cuts taxes on jet fuel, cardrooms and gold bars

A tax proposal from the House would eliminate an aviation tax, cut taxes on cardrooms and eliminate all taxes on the sale of gold bars.

Legislation unrolled by the House Ways and Means Committee lays out several ways taxes could be cut in the state. The repeal of the tax on aviation fuel could have the most dramatic fiscal impact, with budget estimators saying the legislation could cost $1.8 million in general revenue in the first year and $2.2 million in recurring funds. State trusts could take a $22.3 million hit the first year alone without the tax and $25 million in further years.

Rep. Wyman Duggan, a Jacksonville Republican and Chair of the Ways and Means Committee, said eliminating that tax would attract more airlines to do business in Florida. Currently, many carriers plan routes intentionally to avoid fueling up in the Sunshine State, which affects how many routes to and from destinations connect with Florida airports. That has prompted lawmakers to look at the potential repeal of the tax for years.

“By removing this financial burden, hopefully more airlines will refuel in state, which will result in the creation of new routes,” Duggan said.

Meanwhile, the state would expand a sales tax exemption on the exchange of gold, silver, and platinum bullions, a term that includes bars, coins, and ingots. The state also has a tax exemption for the sale of bullion for more than $500, and this would eliminate the threshold entirely for the sake of consistency and bringing the state closer to treating the metals as legal tender.

However, according to House estimates, that could cost state revenue about $1.6 million per year in state taxes and another $500,000 to $600,000 in local taxes.

A House tax relief package shuffles up the controversial distribution of millions in tax dollars to thoroughbred horse breeders.

The legislation, as drafted, would deprive the Florida Thoroughbred Breeders’ Association of $5 million that the organization would have received from the Florida Agricultural Promotional Campaign Trust Fund.

Instead, the House wants to send $4 million to the Gulfstream Park Racing Association and $1 million to Tampa Bay Downs.

The legislation also reduces the tax on pari-mutuel cardrooms for operators from 10% to 8%. That cut could cut an estimated $2.3 million yearly from the state budget.

The proposal would also exclude charitable trusts from paying Florida’s corporate income tax rate, which could reduce taxes collected each year by about $1.1 million.