\n<\/div><\/div>\n<\/div>\n<\/div>\n

By Jim Turner <\/div><\/div>\n

Lawmakers are reviewing further cuts to the state lease tax, already slated for a reduction from 4.5% to 2% in June. The tax reduction is one of Florida Realtors\u2019 legislative priorities. <\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/div>\n

TALLAHASSEE, Fla. \u2013 With business groups long saying the tax should be scrapped, state lawmakers could look at further reducing a tax on commercial leases.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

The House Ways & Means Committee on Thursday reviewed tax-cut \u201cconcepts,\u201d including a possible reduction in the lease tax, as the House and Senate prepare in the coming weeks to negotiate a tax package.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

But committee Chairman Stan McClain, R-Ocala, agreed with Senate Appropriations Chairman Doug Broxson\u2019s assessment that the final tax-cut package won\u2019t reach a $1.3 billion total in the current fiscal year.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cIt won\u2019t be as robust,\u201d McClain said after the committee meeting when asked a question using the same phrase.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

McClain said his committee will roll out a proposal next week that could include shorter sales-tax \u201cholidays\u201d than in the current fiscal year, when the state offered two 14-day tax holidays for back-to-school items, two 14-day tax holidays for disaster-preparedness supplies, a three-month tax holiday for recreational items and activities and a seven-day tax holiday for such things as tools. During tax holidays, consumers do not have to pay sales taxes on purchases.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cAll of that\u2019s in play,\u201d McClain said. \u201cAgain, we have a certain amount of money that we think we can use for tax packaging.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

McClain didn\u2019t say what the overall amount could be.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

House and Senate leaders will negotiate a budget for the 2024-2025 fiscal year and a linked tax package before the scheduled March 8 end of the annual legislative session.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

On Wednesday, Broxson, R-Gulf Breeze, said the final budget will include paying off debt and socking away record reserves but probably will result in tax holidays that are \u201cmore restricted than last year.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

McClain\u2019s committee on Thursday looked at several proposals, including making a deeper cut in the commercial-lease tax, which is expected to go from 4.5% to 2% in June.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

A 1 percentage point reduction would cut revenue to the state by about $360 million a year, McClain said.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

The reduction to 2% is part of a 2021 legislative deal that included collecting sales taxes from out-of-state retailers on purchases made by Floridians and replenishing a state unemployment trust fund depleted after the economy took a massive hit early in the COVID-19 pandemic. The deal allowed cutting the commercial-lease tax when the unemployment fund was replenished. The trust fund is expected to hit a pre-pandemic benchmark of $4 billion in March.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

The state has imposed the commercial-lease tax since 1969, and business groups have sought for years to whittle the rate.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

As an interim step during the 2023 session, lawmakers reduced the tax from 5.5% to 4.5% on July 1, the start of the current fiscal year.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Meanwhile, the House committee also looked Thursday at limiting the number of years local tourist-development taxes could be imposed and providing up to $10,000 in credits against corporate income taxes for companies that employ people with disabilities.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Rep. Anna Eskamani, D-Orlando, said she\u2019d like the credits to also apply to small businesses. Depending on the way they are legally structured, small businesses might not pay corporate income taxes.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cRight now, I think Publix and Disney would be the biggest beneficiaries,\u201d Eskamani said. \u201cAnd I just feel like it would be awesome to incentivize small businesses to benefit too.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

The credits were part of tax proposals from Gov. Ron DeSantis.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

McClain said his committee is still considering a $409 million DeSantis proposal to provide a one-year exemption on certain taxes, fees and assessments on property-insurance policies for homes up to $750,000.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Overall, DeSantis recommended $1.1 billion in tax breaks for next fiscal year, including six sales-tax holidays similar to the current year. The governor\u2019s proposal also called for $22 million in savings through an exemption on insurance premium taxes on flood-insurance policies and to permanently eliminate sales taxes on over-the-counter pet medications, projected to save $37 million.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

<\/p>\n

\n \u2715<\/span><\/p>\n

\n
\n ADVERTISEMENT<\/span> <\/p>\n

<\/p>\n

<\/p><\/div>\n<\/div>\n<\/section>\n

<\/p>\n

Go to Source<\/a>
\nAuthor: amyc<\/p>\n","protected":false},"excerpt":{"rendered":"