FLORIDA – The Sunshine State has just announced sweeping sales tax exemptions for a slew of products your company may need that are related to disaster preparedness and certain skilled trades.
The exemptions are part of a significant tax package signed into law by the governor on May 6, 2022. Here’s what you need to know.
Each year, Florida hosts a two-week sales tax holiday for products related to disaster preparedness. This year’s tax holiday will take place from May 28, 2022, to June 10, 2022.
According to the Dept. of Revenue, supplies that can be purchased tax-free during this time include:
- Reusable ice packs retailing for $20 or less
- Portable self-powered light sources (e.g, flashlights, lanterns and candles) selling for $40 or less
- Gas or diesel fuel containers selling for $50 or less
- Two-way and weather band radios selling for $50 or less (must be powered by batteries, solar power or a hand crank)
- Various batteries, including rechargeable batteries, selling for $50 or less (not including batteries for cars or boats)
- Tarps, bungee cords, ratchet straps and tie-down kits selling for $100 or less, and
- Portable generators used to provide communications or light that sell for $1,000 or less.
New products that are included in the tax holiday this year are smoke detectors, smoke alarms, carbon monoxide detectors and fire extinguishers that retail for $70 or less.
The new sales tax holiday for tools commonly used by skilled trade workers will take place from Sept. 3, 2022, to Sept. 9, 2022. If you’re purchasing tools for employees, this may be a good time to do it.
Products that will be eligible for the exemption include:
- Work gloves that sell for $25 or less a pair
- LED flashlights, hand tools, duffle bags, protective coveralls and tote bags that sell for $50 or less per item
- Safety glasses that sell for $50 or less a pair
- Toolboxes that sell for $75 or less per item
- Tool belts, shop lights and electrical voltage and testing equipment that sells for $100 or less per item
- Industry code books and textbooks that sell for $125 or less per item
- Work boots that sell for $175 or less per pair, and
- Power tools and toolboxes for vehicles that sell for $300 or less per item.
Additional sales tax guidelines
Keep in mind that, with both these exemptions, if you purchase tax exempt and taxable merchandise in the same transaction during the tax holidays, the entire purchase is subject to sales tax.
And any online purchases of eligible items made during both tax holidays are exempt from sales tax as long as orders are accepted by the seller for immediate shipment, even if the products are delivered after the holidays end.