*FAC Priority*
HB 5601
Tax Reduction and Economic Development Incentive Package
House Proposed Concept

  • Both the Senate and House have agreed upon reducing Motor Vehicle License Fees by approximately $395 million.  As a part of the budget process both chambers will propose and adopt other tax cuts and economic development incentives that will be negotiated during the budget conference to determine a final package.  
  • Status: The House tax package has been approved by the full Body and has been transmitted to the Senate and referred to the Senate Appropriations Committee and will likely be discussed as a part of Budget Conference.  The House Budget Chairman has made a verbal commitment to mitigate the negative fiscal impact to local governments related to the “PECO Tax Swap” on the sale of electricity.

 

House Concept

Local Government Statewide Impact

 

Non-Recurring (1 Year)

Recurring (Ongoing)

Sales Tax Holidays

3 – Day Back to School Sales Tax Holiday

12 – Day Hurricane Preparedness Sales Tax Holiday

3 – Day Energy Efficient Appliances Sales Tax Holiday

8 – Day Physical Fitness Membership Sales Tax Holiday

 

($7,200,000)

($700,000)

($300,000)

($900,000)

 

Sales Tax Exemption on Car Seats

Permanent exemption for sales of child restraint systems and booster seats for use in motor vehicles.

 

 

 

($500,000)

Sales Tax Exemption on Cement Mixers

Adds cement mixer drums that are affixed to mixer trucks, as well as the parts and labor necessary to affix those drums to trucks, to the sales tax exemption for manufacturing machinery and equipment that will sunset on April20, 2017.

 

($700,000)

 

 

Tax Swap on the Sale of Electricity

Decreases the sales tax on sales of electricity from 7 to 4 percent and increase the gross receipts tax on electrical power or energy delivered to a retail consumer by the same amount. The new gross receipts tax additional rate will incorporate the existing exemptions from the sales tax to make this change revenue neutral to both the state and to taxpayers. The result is to increase the bondable revenue flow to the PECO trust fund.

 

 

 

($20,900,000)

Community Contribution Tax Credit

The Community Contribution Tax Credit Program provides a credit or refund in the amount of 50 percent of eligible donations to Florida businesses that make donations toward community development and housing projects for low-income persons. The draft legislation extends the expiration date of the program by one year to June 30, 2016.

 

($1,400,000)

 

Prepaid Calling

Modernizes the definition of "prepaid calling arrangement" (Broadens exemption from state and local CST taxes)

 

 

($11,200,000)

Total Fiscal Impact to Local Government

($11,200,000)

($32,600,000)

 

*FAC Priority*
Relating to Communications Services Taxes
SB 266 (Sen. Hukill) 

  • Summary: (After 3/19/2014 Amendment) SB 266 reduces the communications services tax (CST) rates by 0.58 percent, reducing the general rate from 6.65 percent to 6.07 percent and the rate on direct-to-home satellite from 10.8 percent to 10.22 percent. The bill also makes conforming changes to the statutes that authorize a communications services dealer to collect one combined rate that includes both the CST and the gross receipts tax to reflect this two percent reduction in the communications services tax. The effective date of the bill would be January 1, 2015
  • Fiscal Impact: Approximately $5.9 million annually
  • Status: SB 266 in last of three committees. The proposed tax cut was not included in the Governor’s proposed tax reform package and there is currently no companion bill in the House. The amended bill is now being postured by the Senate as a part of its primary tax cut package that will be negotiated with the House during budget conference.  The House is no longer considering the proposal of a major CST related tax cut.
*FAC Priority*
Relating to Tax on Sales, Use, and Other Transactions

(Sales Tax Exemption - Commercial Leases)
SB 176 (Sen. Hukill) and HB 11 (Rep. Steube) 
  • Summary: SB 176 reduces the sales and use tax rate on commercial leases by 1 cent from the current state rate of 6% to 5%. The effective date of the bill would be January 1, 2015.
  • Fiscal Impact: Approximately $17.2 million annually
  • HB 11 phases in an incremental repeal of the sales and use tax rate on commercial leases by 1 cent per year, including local options taxes levied by local governments over a six year period.  The effective date of the bill would be July 1, 2014.
  • Fiscal Impact: $400 million annually after the full repeal
  • Status: SB 176 has been referenced to four committees with no hearing yet. HB 11 referred to three committees with no hearing yet.

*FAC Priority*
Relating to Emergency Communication System

(E-911 Fees)
HB 175 (Rep. Steube) and SB 294 (Sen. Hays) 

  • Summary: Among a variety of technical updates to current law the major emphasis of the legislation is to provide a mechanism for collection of the E911 fee on prepaid wireless services by retailers at the point of sale.  In conjunction with applying the fee to prepaid wireless services the actual fee is being proposed at a reduced rate equal to creating a revenue neutral impact on the total amount of revenue currently collected.
  • Fiscal Impact: It has been determined that a reduction in the fee from 50 cents to 40 cents is necessary to keep the legislation in a revenue neutral posture due to the expanded base including prepaid telecommunications.
  • Status: HB 175 was approved unanimously by the entire House membership on 3/27/2014 and will now await senate action. SB 294 has passed two of three committee references.

 

*FAC Priority*
Relating to Discretionary Sales Surtaxes

(Homelessness Local Option and Use of Funds for Maintaining Transportation Infrastructure)
HB 723 (Rep. Rooney) and SB 786 (Sen. Latvala) 

  • Summary: (After 3-19-2014 Senate Amendment) The senate version of the legislation authorizes counties to use proceeds & interest of local government infrastructure surtax for maintenance and operation of infrastructure only after the approval of an ordinance adopted via a countywide referendum.  The house version of the legislation authorizes counties to use proceeds & interest of local government infrastructure surtax for maintenance and operation of transportation infrastructure only after the approval of an ordinance adopted via a countywide referendum.  The Senate version also authorizes counties to levy discretionary sales surtax for homeless services & facilities pursuant to ordinance conditioned to take effect upon approval of referendum.  The proposed local option for homelessness services would be included underneath the existing cap on combined local discretionary surtaxes levied by counties.
  • Fiscal Impact: The revenue estimating conference has yet to provide an analysis
  • Status: HB 723 was approved by the House Finance and Tax Committee on 3/26/2014 and now moves to the House Local and Federal Committee, which is its second of three references.  SB 786 has passed two of four committees of reference.

Relating to Entertainment Industry
(Film and Entertainment production incentive program)
HB 983 (Rep. Diaz) and SB 1640 (Commerce and Tourism) 

  • Summary: Both bills provide technical revisions to the existing incentive programs and provides for appropriation to fund the program over several years.  Currently, the House bill provides funding in the amount of $200 million per year for six years.  The Senate bill provides funding in the amount of $50 million per year for six years.
  • Status: HB 983 has three committees of reference. SB 1640 passed out of its first committee of reference and is scheduled next to be heard in Finance and Tax. 

SPB 7128 (Sen. Detert)

  • Summary: This bill is similar S 1640 with the major exception that applicants receiving film or entertainment tax credits must receive a 10 percent cash match from the county in which the major production will take place.
  • Status: SPB 7128 is scheduled to be heard in the Senate Commerce and Tourism Committee on Monday 4-7-2014