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Tax relief 2006

By JONI JAMES
Published April 22, 2006

The Florida Legislature on Friday sent its first tax relief bill, a 12-day sales tax holiday for hurricane-related supplies, to Gov. Jeb Bush. He is expected to sign it. More tax relief is on the way, though Republican leaders abandoned some ideas, such as a sales tax holiday for items up to $5,000 and a rollback of school property taxes. With just two weeks to go in the 2006 Legislature, here's a forecast for the coming year:

PASSED OR EXPECTED TO PASS

HURRICANE PREPAREDNESS SALES TAX BREAK: Eliminates, for 12 days, sales tax on certain supplies. Headed for governor's approval. HB 47.

Dates: May 21-June 1.

What qualifies: Generators costing $1,000 or less; storm shutter devices for $200 or less; self-powered light sources for $20 or less; self-powered radio or weather band radio for $50 or less; tarpaulins for $50 or less; ground anchor systems for $50 or less; fuel tanks for $25 or less; batteries, excluding automobile or boat batteries; cell phone batteries for $60 or less, or cell phone chargers for $40 or less; nonelectric food coolers for $30 or less; carbon monoxide detectors for $75 or less; blue ice products for $10 or less.

Cost to state: $34-million.

BACK-TO-SCHOOL SALES TAX HOLIDAY: Eliminates sales tax on certain supplies for nine days. Legislative leaders have committed to the break, but it still must pass both chambers. SB 692 and HB 29.

Dates: July 22-July 30.

What qualifies: Clothes, books, wallets and some bags costing $50 or less. Suitcases, garment bags and briefcases are excluded. School supplies costing $10 or less.

Cost to state: $38-million.

ELIMINATION OF THE INTANGIBLES TAX: Ends a 75-year-old tax on savings and investments that is collected largely from wealthy individuals. Already approved by House, expected to pass Senate next week. HB 209.

Who will benefit: Individuals with more than $250,000 in investments or savings, or couples with $500,000 or more.

Cost to state: $160-million annually.

ALCOHOLIC BEVERAGE TAX REPEAL: End taxes on per-drink sales. SB 1292 and HB 7105.

What qualifies: Beer, wine and liquor sales at restaurants and bars.

Cost to state: $45-million in 2006-07; $52-million in 2007-08.

OBSOLETE AGRICULTURE EQUIPMENT. Revises law to allow farm equipment to be deemed obsolete at less than 10 years, which will cut farmers' property taxes. SB 1074 and HB 357.

Who will benefit: Farmers with idle equipment.

Cost to state: less than $1-million annually.

ROLLBACK IN SCHOOL PROPERTY TAX RATES:

First pushed by Gov. Bush and supported by the House, the lower chamber has quietly acquiesced to the Senate, which said the money is needed for public schools.

$100 REBATE CHECK FOR ALL HOMEOWNERS:

Pushed by Democrats and endorsed by Bush, the idea never got traction. Instead, lawmakers are proposing to bail out the state-run property insurer, Citizens Property Insurance Corp., a cost that would otherwise be shouldered by all property insurance policyholders statewide.

SALES TAX HOLIDAY FOR ITEMS COSTING $5,000 OR LESS.

The House plan was dubbed the "plasma TV tax break."

GAS TAX HOLIDAY: A Democratic proposal, its outlook is dim. The last such tax break was largely invisible because it came as oil prices were spiking, making for dubious politics.

[Last modified April 22, 2006, 01:38:14]