FL Tax On Diapers, Other Care Product Ends

FLORIDA — While, on the whole, the 2023 legislative session was a disappointment for Democratic legislators, there was one bill that received nonpartisan support in both the Senate and House, to the delight of its unceasing defender, Senate Democratic Leader Lauren Book, D-Davie.

On Friday, Book watched with relief as Gov. Ron Desantis signed House Bill 7063 into law. The " Taxation" bill includes a package of tax relief measures, among them Book's proposal to permanently eliminate sales taxes on diapers and other essential baby products as well as incontinence products for the elderly.

Book and Rep. Anna Eskamani, D-Orlando, proposed the bill to make diapers and incontinence products tax-free during the 2022 session. But while the 2022 Legislature eliminated sales tax on baby food, infant formula as well as tampons and feminine hygiene products, it opted to limit the tax-free status of diapers to just one year, running through June 30.

“We made history last year by eliminating sales tax on diapers for one year. A true difference-maker for families with young kids across our state because we know that they deserve relief from rising costs, and because we know that essential health and hygiene items should not be taxed. Period," Book said.

Now, House Bill 7063 makes this measure permanent.

"After years of fighting, we were successful in achieving one of my longstanding priorities: the elimination of sales tax on diapers for working families across the state,"said Book, the mother of 5-year-old twins who has been sponsoring this legislation since she was elected to the Senate in 2016.

"I have been working on this since my very first session, when my own kids were in diaper," Book said. "President Passidomo presented the bill for me during a committee week when I was on maternity leave. And now, here we are — after years and years of fighting. I could not be more proud of our bipartisan work to bring Floridians real, permanent tax relief for baby diapers and incontinence products for Floridians of all ages.

Undaunted by previous rejections of her bill, Book and Eskamani reintroduced their tax-free diaper bill in January as Senate Bill 114.

While the bill died in the appropriations committee on May 5, all was not lost.

The bill was attached to HB 7063, which was unanimously approved by both the House and Senate.

"An average monthly supply of diapers costs approximately $80 which presents a great financial challenge for many working families, especially when you consider the fact that 21 percent of Florida children under age 3 live in families earning less than 100 percent of the federal poverty level, and 26 percent of Florida children under age 3 live in families earning between 100 to 200 percent less than the federal poverty level," said Book.

"Florida families should not be forced to choose between filling up their gas tank, putting food on the table, or buying needed diapers. This tax relief will go a long way to help those who need it most," Eskamani said.

With Eskamani and Book's hard-fought win, Florida became the 22nd state in the nation to remove sales tax charges for diapers.

In addition to diapers, HB 7063, introduced by Sen. Blaise Ingoglia, R-Spring Hill, chairman of the Senate Committee on Finance and Tax, includes an eclectic mix of 31 measures that provide tax exemptions, tax credits, relief from sales taxes and tax reimbursements totaling $1.2 billion in broad-based tax savings to families and businesses.

“Florida cannot independently fix or outpace runaway inflation caused by excessive spending and socialist policies in Washington," Ingoglia said. "While the federal government just keeps printing money, here in Florida under the leadership of Gov. DeSantis and the Florida Legislature, we are saving it and living within our means, so we can reduce or eliminate taxes charged when Floridians purchase key items needed to run a household, raise a child or age with dignity."

Senate President Kathleen Passidomo, R-Naples, said inflation has especially impacted Florida's most vulnerable residents.

"However, we are working to ease the pain with broad-based sales tax relief that will be very meaningful for families and seniors," she said. "This bill creates tax relief opportunities for growing families with new babies or kids heading back to school, for Floridians looking to prepare their homes for severe weather and for Floridians, young and old, who want to get out and enjoy all the beautiful natural resources and fun events the free state of Florida has to offer this summer."

The sales tax exemption on diapers is rolled into a section that also includes tax exemptions on:

• Baby and toddler products, including diapers and wipes.
• Oral hygiene products.
• Adult incontinence products.
• Private investigative services by certain small private investigative agencies.
• Machinery and equipment used to produce, store, transport, compress or blend renewable natural gas.
• Firearm storage devices.
• Certain cattle fencing.

The tax relief package also provides:

• Two 14-day back-to-school sales tax holidays from July 24 through Aug. 6, and Jan. 1, 2024, through Jan. 14, 2024, for certain clothing, school supplies, learning aids and personal computers.
• Provides two 14-day disaster preparedness sales tax holidays from May 27 through June 9, and Aug. 26 through Sept. 8.

See related: Hurricane Preparedness Items On Sale Tax-Free In Florida

• Provides a three-month recreational sales tax holiday (“Freedom Summer”) from May 29 through Sept. 4 for specified admissions, boating and water activity supplies, camping supplies, fishing supplies, general outdoor supplies, residential pool supplies, children’s toys and children’s athletic equipment.
• Provides a seven-day tools sales tax holiday from Sept. 2 to Sept. 8 for tools and equipment needed in skilled trades.
• Provides a one-year sales tax exemption from July 1 through June 30, 2024, for gas ranges and cook tops.
• Provides a one-year sales tax exemption from July 1 through June 30, 2024, for certain ENERGY STAR-certified refrigerators, refrigerator/freezer combinations, water heaters and clothes washers and dryers.
• Reduces the sales tax rate on commercial leases from 5.5 percent to 4.5 percent beginning in December and lasting until the rate is permanently reduced to 2 percent in accordance with Senate Bill 50, which was passed in 2021.

The bill also:

• Expands the property tax exemption for educational property to include certain leased property.
• Redefines “first responder” to include federal law enforcement officers for purposes of the homestead exemption for totally and permanently disabled first responders and the homestead exemption for surviving spouses of first responders who die in the line of duty.
• Clarifies that parsonages, burial grounds and tombs owned by an entity that owns a house of public worship are used for a religious purpose.
• Clarifies that totally and permanently disabled veterans and surviving spouses may transfer their existing homestead exemption to a new property, and allows totally and permanently disabled veterans and surviving spouses who purchase a new homestead in Florida to receive a refund of the taxes they paid in the year of purchase.
• Prohibits the imposition of special assessments on agricultural lands, except special assessments that are currently pledged for bonds until the bonds have been paid.
• Increases the property values and percentages of variance above which a property appraiser may appeal an assessment change made by a value adjustment board.
• Amends the totally and permanently disabled veteran homestead property tax exemption to incorporate a recent court decision.
• Creates a temporary corporate income tax credit for expenses incurred in Florida in preparing a facility to produce human breast milk fortifiers.
• Creates a temporary corporate income tax credit for installing a graywater system on residential property in Florida.
• Increases the annual limit for contaminated site rehabilitation (“brownfields”) tax credits from $10 million to $35 million.
• Delays Florida’s motor fuel tax on natural gas from Jan. 1, 2024, until Jan. 1, 2026.
• Freezes the local communications services tax rates until Jan. 1, 2026.
• Increases the annual cap on the Strong Families Tax Credit program by $10 million.
• Requires future levies of tourist development tax to be by referendum.
• Increases from 225,000 to 275,000 the population cap under which certain counties are authorized to use up to 10 percent of their tourist development tax receipts on public safety expenses necessitated by tourism.
• Authorizes certain fiscally constrained counties to use up to 10 percent of their tourist development tax receipts on public safety expenses necessitated by tourism.
• Distributes $27.5 million in sales tax receipts for two years for use by thoroughbred race tracks in Florida to promote thoroughbred racing and thoroughbred breeding in Florida.
• Creates a pari-mutuel tax credit equal to the amounts paid by Florida racetracks to the Horseracing Integrity and Safety Association.
• Appropriates $35 million to the Department of Revenue to reimburse local governments for the property tax refunds issued to property owners whose residential property was rendered uninhabitable by Hurricane Ian or Hurricane Nicole during 2022.
• Makes non-substantive clarifications to Florida’s statute that provides for property tax refunds related to property rendered uninhabitable.

These provisions take effect July 1.