Key Tax Legislation Impacting Homeowners and Real Estate Market
Governor Ron DeSantis has recently signed House Bill 7073, which introduces substantial tax relief measures amounting to $1.07 billion for Floridians this year. Coupled with the $450 million toll relief enacted last month, Florida families will benefit from $1.5 billion in savings for the Fiscal Year 2024-2025. Since 2019, the Governor has achieved nearly $6.7 billion in tax cuts, maintaining a healthy budget surplus.
Governor DeSantis emphasized that despite economic challenges, Florida’s strong fiscal policies are providing crucial relief to families. The new tax package aims to alleviate the financial burden on residents amidst rising inflation and economic uncertainty at the federal level.
Key Provisions for Homeowners and the Real Estate Market
- Tax Exemption on Residential Property and Flood Insurance:
- A one-year tax exemption on residential property and flood insurance premiums.
- Enhances the My Safe Florida Home Program with an additional $200 million, raising the total investment to over $600 million since 2022.
- Homeowners Insurance Market Reforms:
- Since the 2022 and 2023 reforms, eight new companies have joined Florida’s homeowners insurance market.
- Positive rate filings: 10 companies have filed zero percent increases, and 10 more have filed rate decreases effective in 2024.
Annual Tax Holidays
To further support Florida families, the tax package includes several annual tax holidays:
- Disaster Preparedness Holidays:
- June 1—14 and August 24—September 6.
- Tax-free sales on hurricane preparedness items such as tarps, batteries, and flashlights.
- Back-to-School Sales Tax Holiday:
- July 29—August 11.
- Tax-free purchases on school supplies, clothing, and computers.
- Tool Time Sales Tax Holiday:
- September 1—7.
- Savings on power tools, hand tools, and toolboxes.
- Freedom Month Sales Tax Holiday:
- July 1—31.
- Tax-free purchases on summer recreational items, museum admissions, and state park entries.
Additional Savings and Incentives
- Sales Tax Credit for Businesses:
- A credit for businesses employing persons with disabilities.
- Strong Families Tax Credit Program:
- Increases the cap from $20 million to $40 million to support child welfare organizations.
- Employer Childcare Program Tax Credit:
- Incentives for employers who support childcare programs for their employees.
- Corporate Tax Benefits:
- Automatic return filing extensions for sales tax and corporate income tax in emergencies.
- Corporate income tax credits for businesses hiring persons with disabilities.
- Documentary Stamp Tax Limitations:
- Restricts assessments for reverse mortgages.
Summary for Real Estate Professionals
These tax relief measures are crucial for Florida homeowners, enhancing the real estate market’s stability and growth. Real estate professionals should be aware of these changes, as they significantly impact property taxes, insurance rates, and overall market dynamics. The continued legislative support underscores the importance of staying informed and leveraging these benefits to better serve clients and strengthen the market.