A Miami Democrat wants to give U.S. military veterans a two-month sales tax “holiday” at the end of 2016.
Rep. Kionne McGhee on Friday filed a measure (HB 279) that would allow veterans to avoid paying sales taxes on purchases of clothing, footwear, personal computers, books, sports gear, billiard tables and televisions. The tax break would last Nov. 1, 2016, through Dec. 31, 2016, just in time for the holidays.
The proposal will have to compete with a number of other tax-cut measures during the 2016 legislative session. As an example, Gov. Rick Scott on Thursday renewed his call to permanently eliminate a sales tax on manufacturing machinery and equipment.
Lawmakers in 2013 approved a three-year moratorium on the manufacturing tax, but the tax is scheduled to be revived in 2017. Scott last year projected that companies will have to pay $142.5 million annually if the tax returns.
As for McGhee’s proposal, there is no immediate projection on the savings for veterans or the reductions in state revenue, but the amount could be sizable.
The Florida Department of Veterans’ Affairs reports there are more than 1.5 million veterans in the Sunshine State, accounting for 12 percent of the population over the age 18.
McGhee’s proposal comes as Senate committees next week will begin reviewing tax-cut measures. Also, Scott is expected soon to ask for more than $500 million in tax cuts during the 2016 legislative session.
Along with making the manufacturing tax cut permanent, another issue that could drew attention is a Scott-backed proposal to reduce a commercial real-estate lease tax.
Money for tax cuts during the coming year is expected to come from a projected $635.4 million budget surplus, something that Florida TaxWatch, a Tallahassee-based think tank, warned lawmakers this week not to dip into too deep.
“There will still be intense competition for funding in the next year,” Kurt Wenner, TaxWatch vice president for research, said in a release. “Just as state revenue is climbing, demand for services is also increasing. State economists have predicted $1.6 billion for increased needs next year, ranging from education to health services.”
Senate President Andy Gardiner, R-Orlando, in a memo to senators indicated he would support $250 million in tax cuts.
Senate committees will hear proposals during the coming week to hold a back-to-school tax holiday, trim the tax on commercial real-estate leases and reduce corporate income taxes..
The Commerce and Tourism Committee on Monday will consider a proposal (SB 198), filed by Sen. Dorothy Hukill, R-Port Orange, that calls for a 10-day tax holiday from Aug. 5-14.
The following day, the Senate Community Affairs Committee is scheduled to take up a proposal (SB 116) that would reduce the tax on commercial leases from 6 percent to 5 percent. Cutting the tax is a priority for some business groups. That bill also is sponsored by Hukill, who is the chairwoman of the Senate Finance and Tax Committee.
Also, the Senate Banking and Insurance Committee will take up a proposal (SB 76), filed by Hukill, that would increase the corporate income-tax exemption from $50,000 to $75,000. Increasing the exemption would reduce — or even potentially eliminate — tax bills for businesses.
Throughout his nearly five years in office, Scott has made a top priority of cutting taxes.