House pitches $297M in tax cuts, half what Scott wanted

TALLAHASSEE — A wide-ranging $296.8 million tax cut package from the House would eliminate sales taxes on diapers and feminine hygiene products, offer tax “holidays” for purchasing school and hurricane supplies and trim a commercial lease tax.

The package, introduced Wednesday by the House Ways & Means Committee, is smaller than the $618 million collection of tax cuts proposed by Gov. Rick Scott. The fate of the proposals will depend on upcoming budget negotiations between the House and Senate.

Ways & Means Chairman Jim Boyd, R-Bradenton, said the House package would provide multiyear relief that could potentially reach $949 million and grow to $2.2 billion when added to a House measure being introduced next week that would ask voters to increase the homestead exemption for property taxes.

A similar homestead-exemption proposal in the Senate (SJR 1774) has been approved by one committee.

Boyd e s t i mated t hat , i f approved, the homestead change would save property owners $170 a year on average.

Rep. Joe Geller, D-Aventura, called the cuts “targeted” to individuals and small businesses.

“It didn’t look to me like there was anything that was a giveaway to people who didn’t need it,” Geller said.

Last month, Boyd called Scott’s proposed $618.4 million tax-cut package “a little ambitious,” with other lawmakers saying the governor’s proposal favored corporations over individual Floridians.

“I a l s o s a i d I hoped he was right,” Boyd said after the House tax package was announced. “As we looked through the math, and figured out where we’ve been able to cut spending in the House, we’ve been able to do some other things that allowed us to give more money back to taxpayers. So I’m excited his tax plan was a little ambitious.”

Scott’s proposal features a reduction in a tax on commercial leases, an increased corporate-income tax exemption and a number of salestax holidays for consumers.

T h e H o u s e p a c k a g e , announced as House subcommittees this week rolled out proposed reductions in state spending for the fiscal year that begins July 1, includes a temporary 1.5 percentage-point drop in the commercial rent tax. That tax rate is currently 6 percent.

The reduction wouldn’t begin until Jan. 1, 2018, but it quickly drew praise from business lobbying groups Associated Industries of Florida and the Florida Chamber of Commerce. It is projected to save business owners $190.7 million next fiscal year.

The rate would go to 5.5 percent in January 2020, a mark intended to be permanent.

The Senate has proposed (SB 378) reducing the rent tax by 1 percentage point but has linked it with a controversial plan to eliminate an insurance-industry tax credit.

The tax-holiday proposals include lifting state sales taxes for 10 days in August on school supplies, clothing and the first $1,000 on personal computers and related accessories.

Also, a tax holiday would be provided for nine days just before the 2017 hurricane season on self-powered lights, self-powered radios, tarpaulins, first-aid kits, battery packs and generators.