Florida has implemented permanent, year-round sales tax exemptions on select disaster preparedness and recreational supplies, projected to save consumers more than $160 million annually. This is in addition to an estimated $217 million in yearly savings from a back-to-school sales tax holiday every August.
Both measures are part of a broad tax package approved by the Florida Legislature and signed into law by Gov. Ron DeSantis. Several items now permanently exempt from sales tax were previously covered only during temporary disaster preparedness or outdoor recreation tax holidays that required yearly legislative approval. House Bill 7031 made these exemptions permanent, effective August 1.
The changes will reduce state and local government sales tax revenue. The annual back-to-school holiday alone is expected to cost the state $167.7 million and local governments $49.3 million in lost revenue.
Items now permanently exempt under disaster preparedness include AA-, AAA-, C-, D-, 6-volt and 9-volt batteries; smoke detectors; carbon monoxide alarms; fire extinguishers; portable generators of 10,000 watts or less; waterproof tarpaulins and other waterproof sheeting of 1,000 square feet or less; ground anchor systems and tie-down kits; and portable gas or diesel containers of five gallons or less. Battery exemptions alone are estimated to save consumers $75.7 million annually.
Permanent exemptions for recreational supplies now include U.S. Coast Guard-approved life jackets, bicycle helmets, sunscreen, and insect repellent. These items were previously part of short-term “freedom summer” sales tax holidays.
The legislation also establishes a permanent annual August back-to-school sales tax holiday covering clothing, footwear, wallets, handbags, backpacks, fanny packs, and diaper bags priced at $100 or less per item; school supplies priced at $50 or less per item; learning aids and jigsaw puzzles priced at $30 or less per item; and personal computers and related accessories up to $1,500 for noncommercial use. The exemption excludes purchases made at theme parks, entertainment complexes, lodging establishments, or airports.
Additional provisions include a sales tax exemption on admission to Florida’s 175 state parks, effective July 1, and a full exemption on the sale of gold, silver, and platinum bullion as of August 1, removing the previous $500 minimum transaction requirement.
A temporary “Second Amendment” sales tax holiday will run from September 8 through December 31, exempting various hunting, fishing, and camping items. Covered products include firearms, ammunition, bows, crossbows, and related accessories; camping gear such as tents up to $200, sleeping bags, hammocks, stoves, and chairs up to $50, and lanterns or flashlights up to $30; and fishing equipment including rods and reels up to $75 individually or $150 as a set, tackle boxes or bags up to $30, and bait or tackle up to $5 individually or $10 in sets. Supplies for commercial fishing are excluded from the exemption.
