The House Economic Affairs Committee gave a unanimous vote this morning in favor of HB 1003, a proposal to create a new exemption from tangible personal property (TPP) taxes for businesses with less than $50,000 in business equipment. The proposal also gives counties and municipalities the freedom and flexibility to create even more TPP business tax relief to meet their community’s unique economic goals.
The bill, offered by Governor Scott, requires a constitutional amendment. If it passes the full Legislature, Floridians will vote on the measure in November.
The Foundation for Government Accountability (FGA) engaged early on. We had regular discussions and meetings with the House sponsor, Rep. Eric Eisnaugle, staff from the Senate sponsor of a companion bill, Sen. Nancy Detert, and the Governor’s office.
An earlier version of the proposal did not include county and municipal option to enact even greater TPP relief. FGA Chief Executive Officer Tarren Bragdon and Senior Fellow for Tax Policy Joyce Errecart urged the inclusion of the local option, sharing research that confirmed such a reform would truly make Florida the Tax Haven of the South.
No state in the Southeast or Southwest instituted such meaningful business tax relief. Tarren shared this information with members of the Committee during his testimony this morning, and each member received the overview document we prepared explaining how the reforms would make Florida more competitive for business investment and growth, and the positive impact the local option flexibility had in the state of Vermont.
Meaningful business tax relief like that accomplished by the Governor’s proposal is critical to creating jobs and improving the Florida economy. There are more steps in the process before this proposal is voted by the Chambers and put to the voters in the November, but FGA will be there every step of the way.