(The Center Square) — Florida officials are bragging about the state’s tax holiday, but critics say these events are political gimmicks that don’t provide an economic boost.
Lt. Gov. Jeanette Nunez held a news conference Tuesday highlighting Florida’s Freedom Summer sales tax Holiday.
The nonprofit, non-partisan Tax Foundation’s Manish Bhatt, a senior policy analyst, said in a post that “sales tax holidays are political gimmicks that distract from genuine, permanent tax relief.” He also said that “if a state must offer a ‘holiday’ from its tax system, it is an implicit recognition that the tax system is uncompetitive.”
He also recommended that policymakers in Florida and the 17 other states that use this policy reduce the sales tax rate for the entire year rather than “relying on politically popular but economically inefficient and ineffective tax holidays.”
According to a 2022 report by the Tax Foundation, sales tax holidays don’t promote economic growth or spur new purchases of consumer goods. Instead, they simply shift the date of purchase of goods consumers would’ve bought anyway.
Nunez said it has been the work of Gov. Ron DeSantis’ administration to make sure that Floridians are benefiting from all the natural resources available in the state.
“Gov. DeSantis and I recognize that the reckless spending at the federal level by the Biden Administration has really impacted Floridians, and in some cases has impacted summer vacation plans,” Nunez said.
The Freedom Summer sales tax holiday, worth more than $229.9 million, is part of a $2.7 billion tax relief package and part of Florida’s Framework for Freedom Budget – which totals $116.5 billion.
The overall tax package includes nixing sales tax permanently on essential items, baby necessities, and discounts for commuters on tolls. A total of $227 million has been given back to frequent commuters through the tax package, according to Nunez.
“The governor and I are working hard and understanding the difficult decisions so many Florida families are having to make,” Nunez said.
The summer sales-tax holiday began May 29 and runs until Sept. 4. Sales tax-exempt items include admissions to live music and sports events, festivals, museum entries, fairs, movies, and cultural events.
Some boating and water activity supplies are also sales tax-exempt during this period, including canoes or kayaks under $500, paddleboards or surfboards under $300, and wakeboards, kneeboards, or water skis under $150.
Camping supplies, fishing supplies, and general outdoor equipment are exempt, as well as children’s athletic equipment, children’s toys, and pool supplies.
“Our administration has been focused on ensuring Florida’s economy is thriving,” Nunez said. “That’s why you see so many great statistics. We’re always proud to tout Florida’s economy, we are always proud to tout that we are the fastest growing economy in the nation. We’re proud to tout that we are number one for tourism.”
Nunez also noted that two periods over the next year will exempt back-to-school items, and essential survival items will also be sales-tax exempt to allow Floridians to prepare for potential hurricanes.
“We’re just so excited to talk about the Freedom Summer Sales Tax Holiday, we just want people to understand that it’s vital… and there is something for everyone,” Nunez said.
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