House Finance and Tax Subcommittee (conceptual)
Summary: The draft language embodies concepts with an overarching purpose to replace the current local business tax structure in ch. 205, F.S., with a simplified version of the tax that is more consistent across various business types and among taxing jurisdictions. This is accomplished by:
- Establishing a uniform classification system.
- Establishing a flexible rate structure.
- Grandfathering certain local taxing jurisdictions to allow taxation under the current structure to continue under specified circumstances.
- Eliminating “overlap” of city and county taxes.
- Retaining current local administration of the tax.
- New structure would become effective October 1, 2014, with a transition process from the current structure to the new structure, and allowing taxing jurisdictions to replace revenues raised under the prior system.
- The draft bill language is still in the development stages, however it is expected that a proposed committee bill containing the above concepts will be heard in committee during week two, however the official language has not been filed as of 3-7-2013.
HB 807 (R. Stuebe)/SB 1070 (S. Hays)
Status: Three referrals in House and Senate; Scheduled for review by the Revenue Impact Conference on Friday, March 8, 2013.
Internet Sales Tax
- HB 505 (R. Rehwinkel-Vasilinda) relating to Streamlined Sales and Use Tax Agreement
- SB 88 (S. Margolis) relating to Mail Order Sales
- SB 316 (S. Detert) relating to Taxes
- HB 497 (R. Moskowitz) relating to Small Business Fairness Act
- A common goal is to address the taxation (Florida sales tax) of sales by out-of-state retailers conducted over the Internet. Although this concept is expected to produce a positive fiscal impact, some of the bills also employ reductions in other taxes to create a revenue neutral scenario.
- SB 316 has passed its first committee of reference and has three additional committee hearings scheduled.
- The revenue estimating conference returned an indeterminate fiscal impact for S 316 by S. Detert on 3-1-2013.
- Other bills have not been heard by their respective first committees of reference.
- House Finance and Tax Subcommittee held a workshop on related concepts and could potentially produce a committee bill.
HB 629 (R. O’Toole)/SB 656 (S. Hukill)
Summary: Currently, commercial rentals are taxed at 6% at the state level, plus the local discretionary surtax. Bills would phase out the sales and use tax on commercial rentals by reducing the tax rate by 1% per year and completely repealing both state and local sales and use taxes in the year 2019.
Three referrals in House and Senate; workshopped in H. F&T