Tax Cuts Totaling Over $1 Billion for Florida Families

Tax Cuts Governor Scott wants Florida to beat Texas in job creation by diversifying the economy and helping key industries like manufacturers and small businesses. Governor Scott understands that Florida has a real opportunity to make our state first in job creation. Cutting taxes by more than $1 billion will help achieve that goal. According to the latest data by the U.S. Census Bureau, Florida’s per capita state tax burden is the lowest among all large states at $1,779 and Governor Scott wants to continue to lower it to help businesses and families succeed while stopping the growth of government.

By eliminating the tax on business income for all Florida manufacturers and retailers, the Florida First budget is putting both large and small businesses on the road to more job creation for years to come. The more taxes we cut, the more small businesses in Florida grow, which further diversifies the economy and creates opportunities for all Floridians.

Governor Scott’s $1 billion tax cut package includes:

  • Permanently Eliminating Income Tax on Manufacturing and Retail Businesses –The elimination of this tax will reduce the cost for businesses in Florida by about $770 million annually, attract more businesses to the state, and diversify Florida’s economy by helping more businesses succeed.
  • Permanently Eliminating the Tax on Manufacturing Machinery and Equipment – This tax cut is estimated to reduce the tax liability of Florida’s manufacturing businesses by $76.9 million annually beginning in 2017. By permanently eliminating this tax, Florida will be more competitive for manufacturing businesses to start or expand. If no action is taken during the upcoming legislative session, there will be a substantial tax increase on Florida manufacturers.
  • Cutting the Tax on Commercial Leases – Florida is the only state that has a tax on commercial leases which unfairly targets small businesses. Governor Scott is proposing to reduce the tax on commercial leases by 1 percent in 2017 through the use of both recurring and non-recurring funds. This will save Florida businesses $339 million over the next two fiscal years.
  • Extending the Sales Tax Exemption on College Textbooks – Governor Scott is proposing to extend the sales tax exemption on the purchase of college textbooks for an additional year. The prices of college textbooks have increased significantly over the years, often exceeding $100 per book. Exempting college textbooks from the state sales tax is expected to save Florida students $46 million.
  • Savings for Families with Sales Tax Holidays – The Florida First budget includes funding for a 10-day back-to-school sales tax holiday and 9-day disaster preparedness sales tax holiday. These two tax holidays will save Florida families an estimated $72.8 million in the upcoming fiscal year.