Tallahassee, Fla. -- The idea to give Floridians a back-to-school sales tax break for a few days this summer moves ahead at the state Capitol.
The sales tax holiday is always very popular among families and it proved very popular in the Florida House on Wednesday. Lawmakers passed the bill on a vote of 115 to 0.
The legislation would create a three-day sales tax holiday from August 3-5.
It eliminates state and local sales taxes on a whole host of items, including clothing, footwear, wallets, and bags that cost $75 or less, and school supplies that cost $15 or less.
Bill sponsor Rep. Elizabeth Porter says she's glad to guide the bill forward because a lot of families look forward to the tax holiday in a tough economy.
"It is something they wait for, to do all of their back-to-school shopping, and they go out and they purchase all of their kids' clothes, shoes book bags, school supplies, all at the same time. So not only is it a savings for the families but it's also a boon for the retailers as well. So it stimulates the economy and helps out the families."
Estimates indicate the tax break will cost the state more than about $30 million. But studies show overall tax collections usually increase because people end up buying a lot of items that don't qualify for the tax break.
The Senate must still vote on the legislation.
Florida has offered a sales tax holiday 10 times since 1998. When the economy was better before 2008, the tax break would last from 7 to 10 days. But the last two years, it has been reduced to a three-day period.
The House also approved a proposal from Gov. Rick Scott to increase the corporate income tax exemption from $25,000 to $50,000. That means more than 3,500 small businesses will be allowed to stop paying income taxes. About 11,000 businesses still pay the tax.
First Coast News