This post is part two of a three-part article on Florida’s 2024 tax package. Part one discussed some preliminary changes. The updates are continued in this article. Read on to learn more about what has changed for Florida sales and use tax purposes.
Proceeding forward, the bill then creates a new provision and provides the Florida Department of Revenue with new authority, authority which the Florida Department of Revenue arguably already possessed. Specifically, the Florida Department of Revenue may consider a request to settle any type of liability or refund in the purview of the Florida Department of Revenue after the time to fight the liability or refund has expired. The taxpayer must demonstrate the failure to timely file the challenge was not timely for any one of the following reasons. First, the death or life-threatening injury or illness of the taxpayer; an immediate family member of the taxpayer; or an individual with substantial responsibility for the management or control of the taxpayer. Second, an act of war or terrorism. Third, and finally, a natural disaster, fire, or other catastrophic loss. However, the Florida Department of Revenue may not consider a request received more than one hundred eighty days after the time has expired for contesting the liability or refund denial. Decisions by the Florida Department of Revenue under this new provision are not reviewable in certain circumstances.
Similar to prior years, the Florida Legislature has exempted certain disaster preparedness supplies. There are two periods in which the exemption occurs. The first period is June 1, 2024, through June 14, 2024. The second period is August 24, 2024, through September 6, 2024. The below items are not exempt if sold in a theme park or entertainment complex, public lodging establishment, or airport. The exemption applies to the following items:
- A portable self-powered light source with a sales price of $40 or less.
- A portable self-powered radio, two-way radio, or weather-band radio with a sales price of $50 or less.
- A tarpaulin or other flexible waterproof sheeting with a sales price of $100 or less.
- An item normally sold as, or generally advertised as, a ground anchor system or tie-down kit with a sales price of $100 or less.
- A gas or diesel fuel tank with a sales price of $50 or less.
- A package of AA-cell, AAA-cell, C-cell, D-cell, 6-volt, or 9-volt batteries, excluding automobile and boat batteries, with a sales price of $50 or less.
- A nonelectric food storage cooler with a sales price of $60 or less.
- A portable generator used to provide light or communications or preserve food in the event of a power outage with a sales price of $3,000 or less.
- Reusable ice with a sales price of $20 or less.
- A portable power bank with a sales price of $60 or less.
- A smoke detector or smoke alarm with a sales price of $70 or less.
- A fire extinguisher with a sales price of $70 or less.
- A carbon monoxide detector with a sales price of $70 or less.
- The following supplies necessary for the evacuation of household pets purchased for noncommercial use:
- Bags of dry dog food or cat food weighing 50 or fewer pounds with a sales price of $100 or less per bag.
- Cans or pouches of wet dog food or cat food with a sales price of $10 or less per can or pouch or the equivalent if sold in a box or case.
- Over-the-counter pet medications with a sales price of $100 or less per item.
- Portable kennels or pet carriers with a sales price of $100 or less per item.
- Manual can openers with a sales price of $15 or less per item.
- Leashes, collars, and muzzles with a sales price of $20 or less per item.
- Collapsible or travel-sized food bowls or water bowls with a sales price of $15 or less per item.
- Cat litter weighing 25 or fewer pounds with a sales price of $25 or less per item.
- Cat litter pans with a sales price of $15 or less per item.
- Pet waste disposal bags with a sales price of $15 or less per package.
- Pet pads with a sales price of $20 or less per box or package.
- Hamster or rabbit substrate with a sales price of $15 or less per package.
- Pet beds with a sales price of $40 or less per item.
Back by popular demand is “Freedom Month.” Like with disaster preparedness, Freedom Month exempts from tax certain activities if purchased from July 1, 2024, through July 31, 2024. The sale of admissions to the following types of activities or events will be exempt from sales tax:
- A live music event scheduled to be held on any date or dates from July 1, 2024, through December 31, 2024.
- A live sporting event scheduled to be held on any date or dates from July 1, 2024, through December 31, 2024.
- A movie to be shown in a movie theater on any date or dates from July 1, 2024, through December 31, 2024.
- Entry to a museum, including any annual passes.
- Entry to a state park, including any annual passes.
- Entry to a ballet, play, or musical theatre performance scheduled to be held on any date or dates from July 1, 2024, through December 31, 2024.
- Season tickets for ballets, plays, music events, or musical theatre performances.
- Entry to a fair, festival, or cultural event scheduled to be held on any date or dates from July 1, 2024, through December 31, 2024. Or,
- Use of or access to private and membership clubs providing physical fitness facilities from July 1, 2024, through December 31, 2024.
As a part of “Freedom Month,” the sale of boating and water activity supplies, camping supplies, fishing supplies, general outdoor supplies, residential pool supplies, and electric scooters are exempt. "Boating and water activity supplies" means life jackets and coolers with a sales price of $75 or less; recreational pool tubes, pool floats, inflatable chairs, and pool toys with a sales price of $35 or less; safety flares with a sales price of $50 or less; water skis, wakeboards, kneeboards, and recreational inflatable water tubes or floats capable of being towed with a sales price of $150 or less; paddleboards and surfboards with a sales price of $300 or less; canoes and kayaks with a sales price of $500 or less; paddles and oars with a sales price of $75 or less; and snorkels, goggles, and swimming masks with a sales price of $25 or less. "Camping supplies" means tents with a sales price of $200 or less; sleeping bags, portable hammocks, camping stoves, and collapsible camping chairs with a sales price of $50 or less; and camping lanterns and flashlights with a sales price of $30 or less. "Electric scooter" means a vehicle having two or fewer wheels, with or without a seat or saddle for the use of the rider, which is equipped to be propelled by an electric motor and which weighs less than 75 pounds, is less than 2 feet wide, and is designed for a maximum speed of less than 35 miles per hour, with a sales price of $500 or less. "Fishing supplies" means rods and reels with a sales price of $75 or less if sold individually, or $150 or less if sold as a set; tackle boxes or bags with a sales price of $30 or less; and bait or fishing tackle with a sales price of $5 or less if sold individually, or $10 or less if multiple items are sold together. The term does not include supplies used for commercial fishing purposes. "General outdoor supplies" means sunscreen, sunblock, or insect repellant with a sales price of $15 or less; sunglasses with a sales price of $100 or less; binoculars with a sales prices of $200 or less; water bottles with a sales price of $30 or less; hydration packs with a sales price of $50 or less; outdoor gas or charcoal grills with a sales price of $250 or less; bicycle helmets with a sales price of $50 or less; and bicycles with a sales price of $500 or less. Finally, "residential pool supplies" means individual residential pool and spa replacement parts, nets, filters, lights, and covers with a sales price of $100 or less; and residential pool and spa chemicals purchased by an individual with a sales price of $150 or less. Like before, the exemption does not apply to sales in a theme park or entertainment complex, public lodging establishment, or an airport. If purchasers purchase an admission exempt from tax but then resells the same, sales tax is due on the full amount paid for the resold admission.
These are just some of the additional changes to Florida sales and use tax law from this past legislative session. With how long the bill is, there are still more updates to cover. Look for part three of this article for the conclusion of the series.
About the author: David Brennan is partner with Moffa, Sutton, & Donnini, P.A. His primary practice area is multistate tax controversy. David received a B.S. in Accounting and Finance, with a minor in Computer Science, from Florida State University. He worked as an accountant for a CPA firm before attending law school at Regent University. He received his Juris Doctor in 2013 and was licensed to practice law in Florida in the same year. In 2015, David earned his Masters of Laws in Taxation from Boston University. While working for the Florida Department of Revenue as a Senior Attorney, David focused on various sales and use tax issues. You can read his BIO HERE.
At the Law Office of Moffa, Sutton, & Donnini, PA, our primary practice area is Florida taxes, with a very heavy emphasis in Florida sales and use tax. We have defended Florida businesses against the Florida Department of Revenue since 1991 and have over 100 years of cumulative sales tax experience within our firm. Our partners are both CPAs/Accountants and Attorneys, so we understand both the accounting side of the situation as well as the legal side. We represent taxpayers and business owners from the entire state of Florida. Contact us for a FREE INITIAL CONSULTATION to confidentially discuss how we can help put this nightmare behind you.
AUTHORITY
Chapter 2024-158; House Bill 7073
ADDITIONAL RESOURCES
2024 FLORIDA SALES TAX UPDATE PART I, published June 13, 2024, by David J. Brennan, Jr., Esq.
2023 FLORIDA SALES TAX UPDATE PART II, published August 14, 2023, by David J. Brennan, Jr., Esq.
2023 FLORIDA SALES TAX UPDATE PART I, published July 5, 2023, by David J. Brennan, Jr., Esq.
FLORIDA SALES TAX AUDITS PROCESS AND TRAPS, published March 4, 2023, by David J. Brennan, Jr., Esq.
2023 FLORIDA SALES TAX RATE ON COMMERCIAL RENT, published January 23, 2023, by James Sutton, CPA, Esq.
PHONE CALL FROM FLORIDA DEPARTMENT OF REVENUE: SALES TAX, published October 15, 2022, by Jeanette Moffa, Esq.
FLORIDA SALES TAX INFORMAL WRITTEN PROTEST, published November 17, 2018, by James Sutton, C.P.A., Esq.
FLORIDA SALES TAX - VOLUNTARY DISCLOSURE PROGRAM, published April 9, 2018, by Jeanette Moffa, Esq.