New Florida Bill Has Sweeping Sales Tax Ramifications
by May 13, 2022
Veteran retailers know that sales tax rates are never set in stone. And because some states have recently registered budget surpluses, local governments are eager to cut sales tax rates to potentially lessen the impacts of inflation and make goods more affordable.
In Florida, on Friday, May 6th, 2022, Gov. Ron DeSantis signed into law HB 7071, a bipartisan effort to reduce sales tax rates across a number of product categories – otherwise known as a sales tax holiday. Some of these changes only affect sales tax rates for a week, while others institute changes for an entire year, or longer.
For retailers selling to Floridians, this helpful list can guide you into charging the correct amount of sales tax for every purchase for these time periods. For information on other state’s sales tax holidays in 2022, we’ve compiled this handy article.
How should sellers handle sales tax holidays?
In most cases, online sellers should try their best to honor sales tax holidays. In some situations, sellers are required to honor these holidays. However, there are situations where states allow retailers or certain localities to opt-out of sales tax holidays. In this case, it’s the sellers decision whether or not you honor sales tax holidays.
Sales tax holidays and your e-commerce store
Run your own shopping cart or marketplace? The TaxJar API honors sales tax holidays. Just set your product codes and we’ll make sure you’re not charging sales tax on non-taxable products during sales tax holidays in 2022.
It’s important to keep in mind that sometimes states approve sales tax holidays mid-year. To receive the most up-to-date sales tax news, subscribe to our sales tax newsletter. Ready to automate sales tax? Get started with your free, 30-day TaxJar trial here.
Here are the sales tax holidays in Florida for 2022 and beyond:
Florida Sales Tax Holidays 2022
May 14-August 14, 2022 – Children’s Books Sales Tax Exemption
- A children’s book for this purpose is “any fiction or nonfiction book primarily intended for children age 12 or younger, including any board book, picture book, beginning reader book, juvenile chapter book, middle grade book, or audiobook on CD or tape.” More FAQs on this exemption here.
May 28-June 10, 2022 – Disaster Preparedness 2022 Sales Tax Holiday
July 1-July 7, 2022 – Freedom Week
- During this sales tax holiday period, tax is not due on the retail sale of:
- Admissions to music events
- Sporting events,
- Cultural events
- Specified performances
- Movies
- Museums
- State parks
- Fitness facilities.
- Also exempt from sales tax during this holiday period are eligible boating and water activity supplies, camping supplies, fishing supplies, general outdoor supplies, residential pool supplies, and sporting equipment.
- More information on this holiday can be found here.
July 1, 2022 -June 30, 2023 – Diapers and Clothing Sales Tax Exemption
- Children’s diapers and baby and toddler clothing, apparel, and shoes
The sales tax exemption does not apply to:
- Alterations to any eligible items
- Clothing, apparel, or shoes primarily intended for children over the age of 5 years
- Rentals of any eligible items
- Watches, watchbands, jewelry, umbrellas, or handkerchiefs
July 1, 2022-June 30, 2023 – Energy Star Appliances Sales Tax Holidays
- New Energy Star appliances for noncommercial use
- The rental of eligible new ENERGY STAR appliances does not qualify for the exemption.
- More information on qualifying purchases here.
July 1, 2022-June 30, 2024 – Home Hardening Sales Tax Holiday
- Impact-resistant doors, impact-resistant garage doors, and impact- resistant windows. More information here.
July 25, 2022-August 7, 2022 – Back to School Sales Tax Holiday
- Clothing, footwear, and certain accessories with a sales price of $100 or less per item*
- Certain school supplies with a sales price of $50 or less per item,
- Learning aids and jigsaw puzzles with a sales price of $30 or less*
- Personal computers and certain computer-related accessories with a sales price of $1,500 or less, when purchased for noncommercial home or personal use
- More information can be found here.
September 3-9, 2022 – Tool Time Sales Tax Exemption
- Find a list of eligible items here.
- This sales tax holiday is not supported by TaxJar at this time.
October 1-31, 2022 – Motor Fuel Sales Tax Holiday
- Florida has not released guidance yet for this holiday, and we will update when information is shared.
- This sales tax holiday is not supported by TaxJar at this time.
