Scott Signs Sales Tax Holiday Bill

Gov. Rick Scott signed the Sales Tax Holiday Bill on Tuesday, creating a three-day sales tax hiatus for Florida consumers in August. It provides tax breaks on clothing items up to $75 and school supplies to $15.

After a two-year layoff, the popular back-to-school sales tax break was voted back last year. This year's holiday is set for Aug. 12-14.

Consumers additional spending on taxable items and increased shopping activity boost the states critical retail sector and drive higher tax revenues during the sales tax holiday, said Rick McAllister, president and CEO of the Florida Retail Federation (FRF). Increased demand not only grows tax revenues but just as importantly, it creates jobs.

The bill was approved in the Legislature with support from bill sponsors Sen. Ellyn Bogdanoff and Rep. Elizabeth Porter.

According to FRF, a study by the Washington Economics Group showed that last years sales tax holiday generated $115 million more in taxable sales [when compared to the same weekend from the previous year without a sales tax holiday] and gross sales projections for the month of August were surpassed by $289 million. The bottom line: a $7 million net increase in tax revenues to the state.

Read the full report to get more information about the three-day holiday.
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