Tampa, Florida – Florida is set to introduce an innovative back-to-school tax “holiday,” a first-of-its kind initiative following the winter break, aimed at providing a significant boost to the retail industry. This tax-free shopping period, encompassing a range of products from clothes to personal computers, presents an exciting opportunity for both businesses and consumers.
Scott Shalley, President and CEO of the Florida Retail Federation, acknowledges mixed feelings about the timing of this event. The tax holiday falls just after the new year, a time already crowded with holidays. Shalley told The News Service of Florida, “It’s certainly a fair concern. It is right on the heels of the holidays, but we hope folks will be out trying to take advantage of sales in other areas. This will just be an added opportunity.”
The tax holiday, which will run from Monday through January 14, mirrors the traditional back-to-school holidays offered in the summer, including the one from this year. Shalley expressed hope that this new initiative would encourage people to take advantage of the savings opportunities at the start of the new year.
State economists project that the two back-to-school holidays this fiscal year will reduce state revenue by $126.8 million and local government revenue by $33.8 million. While the actual impact will only be known once the receipts are finalized, the initiative has received backing from Gov. Ron DeSantis, who has proposed holding two back-to-school holidays again during the 2024–2025 fiscal year. This proposal is part of his $114.4 billion budget recommendation, which will be considered by lawmakers starting January 9.
The upcoming tax holiday includes significant exemptions:
- Clothing items like wallets, bags, backpacks, shoes, and diaper bags priced at $100 or less will be tax-free.
- School supplies such as pens, pencils, notebooks, and calculators costing up to $50 are exempt from sales tax.
- Learning aids and puzzles, priced at $30 or less, are also included in the tax exemption.
- Personal computers and related accessories, with a price limit of $1,500, will not incur sales taxes.
However, items like cell phones and video game consoles are not part of the tax holiday.
This initiative represents a strategic move by Florida to stimulate retail activity and provide relief to consumers during a typically high-spending period. The success of this tax holiday could set a precedent for similar initiatives in the future, potentially reshaping the retail landscape in Florida and beyond.
