by
Mary Edenfield
| Feb 16, 2024
HB 7073 (McClain) and SB 7074 (Finance and Tax) are this session’s comprehensive tax package and address several different areas of taxation. SB 7074 is a preliminary proposed bill dependent on negotiations with the House and Senate. HB 7073 does the following:
•Tourism Development Tax: The bill calls for the expiration of the tax six years after the date the ordinance is approved in a referendum but may be renewed for subsequent six-year periods if each six-year period is approved in a referendum. Provides exceptions for Tourism Development Taxes utilized to secure debt and adjusts time frames for renewal by referendum.
•Tangible Personal Property: The bill clarifies tangible personal property taxes are not assessed for infrastructure constructed or installed by an electric utility until the infrastructure is deemed substantially complete. Substantially complete means all permit, or approval required for commercial operation have been received or approved. Applies retroactively to January 1, 2024, and first applies to the 2024 property tax roll.
•Renewable Energy Source Device Assessments: The bill adds biogas to the list of renewable energy sources. Included in the description is the infrastructure associated with biogas energy operations. The bill excludes the infrastructure distribution grid or transmission lines for a natural gas pipeline or distribution system. The amendment first applies to the 2025 property tax roll.
•Home Equity Conversions Mortgage Tax: The bill clarifies only the amount of the principal limit available to the borrower is subject to the taxes. The amendment is intended to be retroactive but does not create a right to a refund.
•Municipal Resort Tax: Requires cities who presently levy the tax to renew the tax by referendum.
•Tax on Rental or License Fee for Use of Real Property (Business Rent Tax): The bill reduces the rate of the Business Rent Tax to 1.25% from its current rate of 4.5%. Note, prior legislation in 2021 called for a reduction of the Business Rent Tax to 2% by 2026, once the tax revenues had recovered to pre-Covid levels. This schedule was advanced to reduce to 2% as of June 2024. The bill excludes the leasing or renting of a motor vehicle as defined Section 316.003, which is used primarily in the trade or established business of the lessee or rentee for a certain time frame.
•Charter County and Regional Transportation System Surtax: The bill reduces the amount of time the tax may be levied from 30 years to 10 years. The levy of the tax by ordinance must be enacted by an extraordinary vote of the county governing authority and approved by a majority of voters in a referendum.
•Indigent Care and Trauma Center Surtax: The tax is levied by counties. The bill removes the ability to approve the tax by an extraordinary vote of the county governing body. The tax may only be levied by the approval of the majority vote in a referendum.
•County Public Hospital Surtax: The tax is levied by counties. The bill removes the ability to approve the tax by an extraordinary vote of the county governing body. The tax may only be levied by the approval of the majority vote in a referendum.
•Pension Liability Surtax: The bill adds language to sunset the surtax for either the actuarial funding level has reached or exceeded 100% of the defined benefit retirement plan or by December 31st of the tenth year after the surtax was approved by referendum.
•Discretionary Sales Surtax: The bill calls for any new or reenacted surtax held on or after July 1, 2024, may not be levied for more than 10 years unless reenacted by ordinance subject to approval of the majority of the voters in a subsequent referendum.
•Tax Returns: The bill provides for an automatic 10-day extension for the filing of tax returns following a Governor declared state of emergency under certain circumstances.
•Agricultural Promotional Campaign Trust Fund: The bill extends the distribution of funds to June 30, 2027. The amount of the trust fund is $27.5 million.
•Individuals with Unique Abilities Tax Credit Program: The bill increases the amount of tax credits for businesses who employ persons with disabilities. The combined total of tax credits that may be granted under this section is $5 million in each of the state fiscal years 2024-25, 2025-26 and 2026-27.
•Federal Income Tax Filing Extensions: The bill grants an automatic extension of 15 calendar days for filing federal income tax returns if there is a federally declared disaster.
•Strong Families Tax Credits: The bill extends the program for 2024-25, increases the tax credit cap to $40 million (increased for $20 million), adjusts the application period to January 1 at 9 a.m. of each year, except for the additional $20 million in additional credit which will be available on July 1 at 9 a.m.
•James Patrick Memorial Incentive Personal Attendant Services and Employment Assistance Program: The bill also authorized 100% of the revenues collected from the tax collection enforcement diversion program to be used by the Florida Association of Centers for Independent Living to administer the program.
•Disaster Preparedness Sales Tax Holiday: The bill authorizes the holiday this year from June 1 to June 14 and August 24 to September 6.
•Freedom Month Sales Tax Holiday: The bill authorizes the holiday this year from July 1 to July 31 on certain types of events and equipment.
•School Supplies Sales Tax Holiday: The bill authorizes the holiday this year from July 29 to August 11 on the retail sale of certain items.
•Tool Time Sales Tax Holiday: The bill authorizes the holiday this year from September 1 to September 7 for the retail sale of certain tools and construction-related items.
•Affordable Housing in Areas of Critical State Concern: The bill authorizes the use of tourism impact tax funds to be utilized for the expansion of affordable housing under certain conditions. (Chapman)