2017 Tax Cut Package
The 2017 tax cut package is intended to provide for a wide range of tax reductions and modifications designed to directly impact both households and businesses, and to improve tax administration.
Based on FAC’s analysis of the proposed tax cut concepts, Counties will experience an estimated $21 million recurring impact statewide. FAC’s initial analysis can viewed here.
The proposed concepts contain several provisions related to sales tax. The proposal:
- Exempts from sales tax certain purchases made by municipally owned golf course operators;
- Reduces the state sales tax rate on the rental of commercial real estate from 6.0 percent to 5.8 percent;
- Includes new sales tax exemptions for Feminine hygiene products;
- Provides a 3-day “back-to-school” holiday for sales of clothing valued at $60 or less and school supplies valued at $15 or less, and exempts the first $750 of the sales price of personal computers from the sales and use tax;
- Provides a 3-day "disaster preparedness" holiday for sales of specified items related to disaster preparedness;
- Sets forth procedures for certain resellers of admissions to receive a refund or a credit of taxes paid when they make a sale to a tax-exempt person;
- Creates a sales tax exemption for building materials, pest control services, and the rental of tangible personal property used in new construction in Rural Areas of Opportunity. The exemption is limited to $10,000 for any single parcel;
- Exempts from the sales and use tax data center property purchased, rented, or leased by a data center’s owners and tenants when used to construct, maintain, and operate computer server equipment at a data center. The data center’s owners and tenants must make a cumulative capital investment of $150 million and the data center must have at least 15 megawatts of power and at least 1 megawatt of power dedicated to each individual owner and tenant of the data center.
- Exempts from the sales and use tax fingerprint services that are part of the application to obtain a concealed weapons and concealed firearms license;
- Exempts from sales tax health products for livestock, poultry, and aquaculture.
For property tax purposes, the proposed includes:
- Provides a 50 percent discount in property taxes to certain multifamily, low-income housing projects;
- Exempts 501(c)(3) Assisted Living Facilities from property tax, beginning in 2017.
- Clarifies that existing exemption for charter schools also applies when the charter school makes a payment directly to a third party.
- Provides guidance for the determination of whether certain heavy construction and agricultural equipment returned under a rent-to-purchase option is inventory and exempt from property tax
Further changes in the concept language include:
- Expands the authority of counties to use revenue derived from local option tourist development taxes for a publicly owned auditorium operated by an organization exempt from federal income tax under the provisions of section 501(c)(3) of the Internal Revenue Code;
- The bill extends the 4.04 percent distribution of the cigarette tax distribution to the Moffit Cancer Center, not to fall below $15.6 million annually, to the Moffitt Center until June 30, 2053;
- Repeals obsolete emergency rulemaking authority for the Department of Revenue;
- Makes permanent the Community Contribution Tax Credit and limits credits to $14 million per fiscal year;
- Increases the Contaminated Site Rehabilitation Tax Credit program annual tax credit limit from $5 million to $10 million;
- Increases the limit on Research and Development Corporate Tax Credits from $9 million to $18 million for calendar year 2018;
- Redefines “beer” for purposes of the beverage law;
- Changes the filing due date for Reemployment Assistance Tax returns and allows the Department of Revenue to waive penalties for late filing in certain circumstances;
- Requires local motor fuel taxes to be renewed before July 1 to be effective on September 1 of the year they expire;
- Exempts from license fees the registration of certain marine boat trailers;
- Extends the Corporate Income Tax filing extension period from 5 months to 6 months for certain corporate taxpayers to conform to federal changes;
- Repeals a requirement that a tax notice be placed on vending machines, and the related penalty;
- Repeals several annual license taxes and registration fees;
- Deletes a requirement that circuit courts provide estate administration information to the Department of Revenue;
- Allows low-income residents of homes for the aged to prove their income by providing an affidavit to the property appraiser.