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Kiplinger
Kiplinger
Business
Katelyn Washington

What’s in DeSantis’ $1.3 Billion Florida Tax Relief Bill?

Florida welcome sign for DeSantis tax bill story

Gov. Ron DeSantis signed a $1.3 billion Florida sales tax relief bill into law. The legislation, which DeSantis describes as the largest tax cut in the state's history, defines 2023 sales tax holidays and makes several essential items permanently tax-free There’s even a tax break for gas stoves.

“I will continue to push smart fiscal policy that will allow Florida families to keep more of their hard-earned money in their pockets. Stronger families make a stronger Florida,” DeSantis said in a release regarding the bill.

The multi-billion tax relief bill came just in time to help Floridians keep more of their money. A temporary sales tax-exemption period for baby and toddler clothing, toddlers’ shoes and other items, was due to expire at the end of June. Now, Florida families can purchase these items beyond just this summer.

DeSantis Tax Bill: What is Tax-Free in Florida for 2023?

While many other states eliminated the tax on diapers, the Florida tax relief bill exempts nearly all baby products from sales tax. Under the new bill, tax-exempt baby and toddler products include but are not limited to:

  • Clothing, shoes and accessories
  • Baby safety gates and play yards
  • Baby bottles, nipples, and teething rings
  • Changing tables, cribs, strollers, jumpers, bouncers, and baby swings
  • Disposable and reusable diapers and baby wipes
  • Baby and toddler carrying seats and trailers for bicycles

Other items are tax-free under the 2023 Florida tax legislation as well, including oral hygiene products and firearm safes and lock boxes.

Florida Sales Tax Holidays 

Last year, Florida only had one “back to school” sales tax holiday and one “disaster preparedness” tax holiday. Now, residents can look forward to two “back to school” shopping sales tax holidays when school supplies and some clothing and footwear (not limited to baby and toddler sizes) will be tax-exempt. 

Additionally, Florida will have two “disaster preparedness” sales tax holidays in 2023 (exempts items such as flashlights and batteries). One has already begun. 

  • "Disaster preparedness” tax holidays are from May 27 through June 9, 2023, and August 26 through September 8, 2023. During these holidays, consumers can purchase several items tax-free, including generators, laundry detergent, and even portable pet kennels.
  • “Back to school” tax holidays will take place from July 24 through August 6, 2023, and from January 1, 2024, through January 14, 2024.

There will also be a “Freedom Summer” rather than only a "freedom week" from May 29 through September 4, 2023. During this sales tax holiday, some athletic equipment and children’s toys will be tax-exempt. Floridians can also purchase many event tickets (concerts, sporting events, etc.) tax-free during the freedom summer. 

DeSantis’ Gas Stove Tax Break 

Gov. DeSantis has been expressing his wishes to make gas stoves tax-exempt since at least February after he reportedly accused the Biden administration of wanting to ban gas ranges. A permanent sales tax exemption on gas stoves didn’t make it into the law, but a one-year sales tax holiday on these appliances did. 

Floridians can purchase gas ranges, gas cooktops, and some energy-efficient appliances tax-free any time between July 1, 2023 through June 30, 2024.

Other Florida Tax Relief 

  • The Florida tax relief bill also includes a reduction in business rental tax. The rental tax will be reduced from 5.5% to 4.5% and will become effective on December 30, 2023. 
  • Some Florida residents also have an extension to file their 2022 federal income taxes. The IRS granted a tax deadline extension following severe storms. Impacted residents now have until August 15, 2023, to file their federal taxes that were originally due on April 18.
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