Here Are the Tax Breaks, Retirement Adjustments, and Other Items You Need to Know From Florida's Latest Budget Proposal

Money.Photo byMackenzie MarcoonUnsplash

Floridians may soon find themselves paying just a little less for some popular items. Governor DeSantis announced a new tax plan on February 8th with a purported $2 billion in credits, savings, and exemptions across a wide variety of items. The announcements came as part of a larger push by the governor's office to draw attention to DeSantis's proposed budget for the 2023 - 2024 fiscal year, which was also revealed this month.

Families with young children will be set to benefit most from the plan. Sales tax exemptions are planned for many childcare and young-adult items, such as books and toys. Additionally, permanent tax exemptions are planned for the following items:

• Baby and toddler clothing
• Cribs/strollers
• Diapers
• Sanitary wipes

Additionally, the state's "Back to School Tax Holiday" will be extended to four weeks in total: two during springtime, and two more during fall. Collectively, these measures are aimed at providing tax relief to the state's ever-increasing number of families with children.

Further credits are planned for the summer, defined in this case as Memorial Day through September 4th. During what the press release is calling a "Freedom Summer" tax holiday, many leisure and recreational activities will be exempted from sales tax. These include fishing, camping, boating, and other watersport supplies, parks and museum admissions, and some sports equipment. Collectively, the governor's office valued these tax exemptions at more than $224 million.

Jetski on the open water.Photo byBas Van Den EijkhofonUnsplash

The overall budget proposal, being positioned as the "Framework For Freedom Budget", carves out a few more exemptions. All household goods under $25 will receive a one-year tax exemption, for example. The proposal also includes a permanent tax exemption for the purchase of gas stoves - a not-too-subtle rejoinder at recent federal commissioner comments regarding potential bans of the appliances.

The budget proposal isn't all tax breaks, however: it also includes several proposed changes to the Florida Retirement System or FRS, which is currently only 82% funded, according to the annual budget details. Chief among the changes are the following recommendations:

• Increasing the employer's contribution by 3%
• Increasing current retiree's pension benefits by 4% to ease inflationary burdens

The overall proposed changes also include several items that impact law enforcement and public safety, including new funds for law enforcement to combat fentanyl abuse and a slated increase for correctional officers' and state police officers' salaries. The budget proposal also carves aside $220 million for one-time incentives and recognition payments to first responders.

The budget also sets records for public school funding overall, as well as allocating an additional $200 million for teacher salary increases. Those changes are paired with more specialized and local funding for various colleges, recruitment programs, and other targeted education measures. Postsecondary workforce training and continuing education course funding also see an increase. Combined with direct funding for Florida's state universities, the education package makes up a large portion of the new spending allocated in this year's budget.

Taken together, these items make up the largest proposals and changes in this year's budget. Needless to say, the budget goes on to propose new and revised funding for many areas other than those discussed above. These include environmental protections, water improvement, Everglades restoration projects, healthcare and related services, and government operations. Those who would like to read the full detail of the proposals can find the budget framework here.