A one-month sales tax holiday is coming to the state of Florida, the governor announced on Tuesday.
The “Freedom Sales Tax Holiday” initiative that was launched two years ago will return this summer for the entire month of July, Gov. Ron DeSantis said during a press conference in Tampa.
The holiday will remove sales tax from many outdoor items, including fishing equipment, outdoor recreation equipment, admissions to state parks and museum sales.
“While the federal government is causing high inflation and skyrocketing costs for families, Florida’s smart fiscal policies allow us to reduce taxes and help reduce the burden on Floridians,” the governor said. He added that residents should enjoy the summer “despite record Bidenflation.”
The annual inflation rate for the United States was 3.5 percent for the 12 months ending in March, compared to the previous rate of 3.2 percent, according to data published by the Labor Department earlier this month.
Savings of any sort will help the average American, supporters say. Proponents also suggested that states such as California should follow Florida’s lead.
“Gavin Newsom, I hope you’re taking notes on how to be a Governor that takes care of his state’s citizens. I’m thinking the onerous CA gas tax might be a great place to start,” a California resident posted on social media.
“Gavin Newsom, notice how Governor Ron Desantis is actively providing incentives for being a Floridian. What are you actively doing to provide incentives to Californians? Govern for your tax paying landowners. You take take take. Time to give back!” another user commented on social media.
But some critics, including the Tax Foundation, believe sales tax holidays are largely ineffective. According to a 2017 study published by researchers with the Federal Reserve, consumers simply shift the timing of purchases that they were already going to make. Opponents argue that they provide modest savings but not real tax relief.
Opponents also shunned Florida for imposing any sales tax to begin with. Residents of Oregon, Alaska, Delaware, Montana, and New Hampshire don’t pay sales tax on goods and services.
Critics say the move is a political gimmick, and the holiday doesn’t truly offer residents any significant savings.
“Too bad you won’t do anything about property taxes and the housing and insurance crisis!! But thanks for tossing us a few pennies off a tent! It may end up being a home for most Floridians!” one individual commented.
However, the program is advantageous for all Floridians, according to Dana Young, the President and CEO of Visit Florida. Last year, 135 million people visited Florida, and promoting tourist-friendly activities in the summer has great economic benefits for the state, according to the tourism executive.
“That visitor spending, coupled with the leadership of our governor, gives us the tremendous advantage as Floridians, having no state income tax and having the ability to offer these huge sales tax holidays that, if we weren’t doing so well, we wouldn’t be able to offer,” she said.
The governor also waived admission for all visitors to Florida State Parks for Memorial Day weekend to kick off summer savings for families statewide.
“I’m excited about the summer season. We want people to be able to enjoy it,” Mr. DeSantis said.
