CS/SB 7074 (Finance and Tax) is the Senate comprehensive tax package and addresses several different areas of taxation. CS/SB 7074 does the following:
•Tourism Development Tax: The bill adds language for the current law provision for a plan for the expense of the revenues. The new language states the plan may not allocate more than 25% of the tax revenue received for a fiscal year to fund an individual project unless approved by a supermajority vote of the governing body.
•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 permits or approvals required for commercial operation have been received or approved. Applies retroactively to January 1, 2024, and first applies to the 2024 property tax roll.
•Homestead Assessment: The bill addresses the correction of mistakes/errors made by the property appraiser in assessing homesteaded properties and defines the timing of the correction of the mistakes, notice to the property owner and the time frame for when the correcting valuation will apply.
•Assessments of certain residential and nonresidential real property: The bill addresses the correction of mistakes/errors made by the property appraiser in assessing non-homesteaded properties and defines the timing of the correction of the mistakes, notice to the property owner and the time frame for when the correcting valuation will apply.
•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.
•Taxpayer Friendly Property Assessment Administration: The bill requires property appraisers to provide multi-language versions of the forms prescribed by the department. The bill also provides if exemptions are granted by error of the property appraiser, the taxpayer will not be liable for the unpaid taxes, penalties or interest.
•Exemption of Homesteads: The bill provides for when a homestead property is damaged or destroyed and is uninhabitable by January 1 after the damage occurs, failure to repair or rebuild the homestead property in five years will constitute an abandonment of the property and its status as a homestead. The change is the time frame from three years for abandonment to five years.
•Homestead Exemption Forms: The property appraiser is to provide a form with notices of examples of activities that may affect eligibility of homestead exemptions. The bill further identifies notice requirements by the property appraiser to a property owner explaining why the owner is not entitled to a homestead exemption, any unpaid taxes, penalties and interest due and how they were calculated.
•Exemption for Disabled Ex-Service Member or Surviving Spouse: The bill increases the property value of the exemption of such a person exempt from taxation from $5,000 to $10,000.
•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.
•Promissory Notes (Alarm Systems): The bill exempts from all excise taxes all non-interest bearing promissory notes, non-interest bearing non-negotiable notes, or non-interest bearing written obligations to pay money, or assignments of salaries, wages or other compensation made, executed, delivered, sold, transferred, or assigned in the state, and for each renewal of the same, of $3,500 or less given by a customer to an alarm systems contractor.
•Local Option Food and Beverage Tax: The bill clarifies language relating to the referendum.
•Indigent Care and Trauma Center Surtax: The tax is levied by counties. The bill extends the tax to consolidated counties with a population of at least 800,000.
•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.
•Dealers Credit for Collecting Tax for the Department of Revenue: The bill amends the amount due on such returns only filed by electronic means shall be allowed $45 of the amount of the tax due (up from 2.5%), accounted for and remitted to the Department of Revenue in the form of a deduction.
•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.
•Qualifying Railroad: The bill redefines “qualified railroad” and provides clarity and timelines for when an applicant must submit required documents to secure tax credits.
•Individual 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 granted under this section is $5 million in each of the state fiscal years 2024-25, 2025-26 and 2026-27.
•Strong Families Tax Credits. The bill extends the program for 2024-25 under certain revised criteria, 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.
•Deposit of Revenue from Alcohol and Tobacco Laws: The bill provides that after the required distributions to the Alcoholic Beverage and Tobacco Trust Funds, certain allocations will be made monthly to the University of Miami, University of Florida and the Mayo Clinic for Cancer Research until June 30, 2054.
•Agricultural Promotional Campaign Trust Fund: The bill repeals Section 41 of Chapter 2023-157, Florida Statutes.
•Insurance Premium Tax: The bill makes the following changes to the insurance premiums tax:
•Exempts flood insurance policies for one year.
•Requires insurers to provide a credit to policyholders for certain insurance policies on residential dwellings for one year and allows insurers to take a credit against their Insurance Premium Tax liability by the amount credited to policyholders.
•Creates a one-year state fire marshal assessment and surcharge holiday and Florida Insurance Guaranty Association assessment credit.
•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.
CS/SB 7074 was amended to include provisions to extend childcare provider tax credits and clarify language for affordable housing homestead exemption criteria applicable to a 75% exemption of multifamily residential units. Additionally, the bill was amended to include affordable housing provisions within Areas of Critical State Concern (Monroe County) and clarifies language pertaining to tax reductions to the Insurance Premium Tax. (Chapman)