- The majority of Florida’s state sales tax goes into the General Revenue Fund, which funds education, human services, and public safety.
- There are 281 exemptions in law that result in billions of dollars in tax revenue not being collected.
- Florida House Speaker Paul Renner wants to review the sales tax and its exemptions.
- Florida TaxWatch has conducted a review of the current exemptions to determine which ones should be retained and which ones could be further analyzed for elimination.
- The report highlights exemptions that are necessary to maintain the structure of the sales tax and those required by the Constitution or other controlling laws.
- Sales tax exemptions are generally not considered good tax policy, but they can address inequities and avoid complex administrative systems.
- Some view exemptions as a way to keep taxes low and support non-profit organizations, while others see them as loopholes or missed revenue opportunities.
- Past research has shown that most exemptions have some justification, but a periodic review is important.
Source: taxconnections.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
