ISSUE: Should Florida continue the Back-to-School Sales Tax Holiday.

DISCUSSION: The Florida Legislature once again granted citizens a Back-to-School Sales Tax Holiday at the conclusion of the 2011 Legislative Session. This was in part due to our strong grassroots efforts and a study by the Washington Economics Group that showed the actual positive economic effects of the 2010 sales tax holiday. The study showed that the 3-day sales tax holiday actually generated increased revenues to the state in the amount of $7 million based on increased sales of taxable items of $115 million, rather than costing the state approximately $24 million in lost sales taxes as asserted by the state revenue estimates. The results of this study are in keeping with the 2009 Washington Economic Group study which concluded that a sales tax holiday would result in increased sales tax revenue to the state and, further, should be adopted on a continuing annual basis.

POSITION: The Florida Retail Federation supports the Back-to-School Sales Tax Holiday.

RELATED BILLS
SB 982 Back-To-School Sales Tax Holiday, Bogdanoff
HB 737 Back-To-School Sales Tax Holiday, Porter

UPDATES

1/27/12
The Back-to-School Sales Tax Holiday bill, HB 737 by Representative Elizabeth Porter, was passed unanimously by the House Finance & Tax Committee on Thursday afternoon, January 26th. The next stop for the bill is the House Budget Committee and then to the House Floor for final action. The Senate companion bill, SB 982 by Senator Ellyn Bogdanoff, is still in its first committee of reference, but this should not be a problem since Senate President Mike Haridopolis has indicated he is very much a fan of the holiday. We are very optimistic that the Legislature will once again grant a Back-to-School Sales Tax Holiday for the 2012 school year.

2/17/12
On Wednesday, HB 737, by Rep. Elizabeth Porter, passed the Florida House of Representatives on a unanimous vote. This bill, as passed by the House, gives shoppers the opportunity to purchase their back to school items tax free during the weekend beginning August 3rd. The Senate version, SB 982, by Sen. Ellyn Bogdanoff, still has two more committees of reference in which it needs to be heard: Finance and Tax, and Budget. FRF is working with the Senate to ensure that it makes it through to the Senate floor for final passage.