Florida parents shopping for back-to-school deals may be able to avoid sales taxes if a bill creating a sales tax holiday works its way through the Legislature.
Florida has held sales tax holidays for seven of the last 10 years, but not since 2007. Gov. Charlie Crist called for a sales tax holiday in his State of the State address on March 2.
I ask you to bring back the sales tax holiday for 10 days just before the new school year, Crist said in the speech. This step will put millions back into the pockets of Florida families. They will thank you as will Florida business.
The Washington Economics Group compiled a study on the impact of a Florida sales tax holiday in October. The study maintained that a sales tax holiday held right before a new school year would have generated almost 22,000 jobs and $628 million in salaries. It also held that a sales tax holiday would have added $118 million in state and local taxes in the long run, though state revenue would decrease anywhere from $24 million to $44 million.
Rick McAllister, president and CEO of the Florida Retail Federation, said everyone benefits from a sales tax holiday.
A sales tax holiday is a win for the consumer, and Florida families need a break right now, he said Tuesday. Its also a win for retailers in terms of selling both taxable and non-taxable goods.
The state also wins from a sales tax holiday, he said. It stimulates the economy and it creates extra jobs.
Kurt Wenner, director of tax research at Florida TaxWatch, praised the proposed tax holiday. It boosts sales in a generally down time, he said. It works on a lot of different levels -- politically, for individual taxpayers and the economy.
Despite the governors backing, the fate of the sales tax holiday remains uncertain in the Legislature.
Sen. Mike Fasano, R-New Port Richey, has a bill that would establish a 10-day sales tax holiday in August. While the bill has not yet emerged in any committee, Fasano staff members said the bill has the support of the Senate leadership and will be heard in the next two weeks.
Legislation in the House, sponsored by Rep. David Rivera, R-Miami, and Rep. Anitere Flores, R-Miami, would create a three-day sales tax holiday. The bill moved through the House Finance & Tax Council last week.
On Tuesday, the governors office said Crist continues to favor a 10-day holiday but that it will review the proposed three-day holiday.
Noting that sales tax holiday proposals have died in the Senate in the last two years, McAllister said the final result will probably be a three-day holiday. Even a shortened tax holiday would be good for Florida, he said.
McAllister said that he hopes the matter will be resolved as quickly as possible since retailers would have to set up advertising for the event.
Reach Kevin Derby at kderby@sunshinestatenews.com, or (850) 727-0859.
