Families, businesses pay most of Florida's sales tax, state analysis shows
Roughly two-thirds of Florida's sales tax proceeds comes from households in the state, the latest analysis prepared by state economists shows, while tourists account for about 16% of the revenue collected.
The annual analysis was posted last week by Office of Economic and Demographic Research and comes amid debate over whether to cut sales taxes c or look for ways to cut property taxes paid by homeowners. Florida levies a 6% sales tax on retail, admissions, transient lodgings, and commercial real estate rentals, unless expressly exempted. A House legislative analysis shows that sales tax is projected to account for nearly 74% of the states general revenue in state fiscal year 2024-25.
Gov. Ron DeSantis wants to cut property taxes first and has cited the payment of sales taxes by 'tourists' and 'Canadians' as one justification. House Republicans, meanwhile, have touted their proposal to cut more than $5 billion in sales taxes as something that could take effect much sooner. House Speaker Danny Perez wants to trim back the sales tax from 6% to 5.25%.
EDR, which reports to the Legislature, estimates the source of sales tax revenue on an annual basis, but because state economists rely on data available from the federal Bureau of Labor Statistics there is a lag, said Amy Baker, coordinator of the office.
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The latest report, which is based on 2021-'22 information, calculates that households paid 65.8% of sales tax collections while businesses were responsible for slightly more than 18%. Tourists accounted for 16.1%.
Florida has a very regressive tax structure partly because we are so reliant on sales tax. For Floridians who make less they pay more of their income to taxation. … Any effort to address that imbalance is a positive one in my book.'
– Rep. Anna Eskamani
These numbers have fluctuated somewhat, and previous reports show that tourists accounted for roughly 13% of sales tax collections in 2016 and 2017. The number of tourists has been on the upswing in recent years, according to Visit Florida, the state's tourism marketing arm. EDR's 2019-20 report estimated that more than 76% of sales taxes collected in that fiscal year came from households compared to 11.9% from tourists.
When discussing his own plan to lower property taxes, DeSantis argued that a cut in sales taxes would allow 'relief for foreigners. It allows relief for visitors and part-time residents. I think that tax relief needs to be focused on Floridians.'
The governor wants legislators to give an estimated 5.1 million residents who have a homestead exemption on their property taxes a rebate averaging $1,000 in December. That would be followed by a 2026 ballot proposal to enact a permanent tax cut.
The House, however, is moving ahead with its sales tax plan. The bill cleared its first committee unanimously on Wednesday with both Democrats and Republicans on the Ways and Means Committee praising the idea.
'Florida has a very regressive tax structure partly because we are so reliant on sales tax,' said Rep. Anna Eskamani, a Democrat from Orlando. 'For Floridians who make less they pay more of their income to taxation. … Any effort to address that imbalance is a positive one in my book.'
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Chicago Tribune
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CNN said Walters declined to let the Oklahoma State Board of Education see a document on the legal status of his tests during a meeting in July. What People Are Saying The American Federation of Teachers told Newsweek: "Ryan Walters appears to be auditioning for the role of MAGA-in-chief, not educator-in-chief. His priority should be educating students, but it's not. It's getting Donald Trump and other MAGA politicians to notice him and think of him as their culture warrior. "This test will be yet another turnoff for teachers in a state that already has a huge shortage. It doesn't solve an actual problem in the classroom, but it certainly serves as a major distraction in the media as he deals with personal problems. "Teachers are patriotic, and they don't need a loyalty test from Ryan Walters to prove it. Whether they are conservative or liberal, they want what their students need: safe and welcoming public schools that are engaging and relevant and that prepare students for college, career and life." Oklahoma Superintendent for Public Instruction Ryan Walters told CNN: "We will not allow these leftists' plans and schemes to take place here in Oklahoma. They are trying to warp the minds of our kids to turn them into social justice warriors, instead of kids that are getting the most of their god given talents to go get a good job, to go live a fulfilling life." He told the New York Post: "Here in Oklahoma, our academics are going to be grounded in fact. "We've seen states like New York and California go so radical with gender theory and Marxist indoctrination, they are warping the minds of young people. … We need our teachers to agree to not be woke indoctrinators in the classroom. "We're also going to be teaching the foundations of American history. … So we can continue to be the greatest country in the world. We want our students to be patriots." PragerU CEO Marissa Streit told CNN that the questions were aimed at "undoing the damage of gender ideology that is forced and taught through some of these other tests like the PRISM test." PRISM is a training program created to help teachers support LGBTQ+ students in California. Oklahoma Democratic Party Chair John Waldron, a former teacher, told the outlet that Walters' plan was a "loyalty test" and an "insult to our profession." What Happens Next If Walters goes ahead with his tests, they are likely to face legal challenge. If they pass the courts, it remains to be seen what effects they will have on Oklahoma's education system and whether they will be extended to teachers coming from beyond New York and California.
