Summer is just around the corner, and with it comes the start of the sales tax holiday season. We have an important announcement regarding changes to the sales tax holidays in Florida. On Friday, May 5, 2023, HB 7063 was passed unanimously in both chambers of the Florida legislature and subsequently signed into law on Thursday, May 25, 2023.
According to a recent Avalara communication, some companies doing business in Florida may need to take action. Please consult your tax advisor prior to making any changes.
We have included the full text of the customer notification regarding the sales tax holiday changes in Florida. We kindly request your assistance in ensuring that our joint customers are aware of this communication and the associated Avalara Knowledge Center article.
Customer Communication sent on Friday, May 26, 2023:
Hello,
We would like to inform you that on Thursday, May 25, Governor Ron DeSantis of Florida signed a bill approving legislation that introduces six sales tax holidays in the state.
However, due to the haste in drafting the bill, the Florida Legislature included items eligible for two sales tax holidays that have different tax treatments. For the overlapping AvaTax codes that are included in both holiday periods, Avalara will apply the tax treatment that is most beneficial for your customers. In cases where an item is subject to two different price thresholds, the highest threshold will be applied whenever possible.
The two sales tax holidays that have overlapping items are as follows:
- Disaster Preparedness: Saturday, May 27, to Friday, June 9, and Saturday, August 26, to Friday, September 8.
- Freedom Summer: Monday, May 29, to Monday, September 4.
No action is required from your end for the impacted AvaTax codes.
However, there are certain items included in the legislation that require new AvaTax codes to properly support these sales tax holidays. The following tax codes have been created:
- PH101100 – Non Electric food storage cooler
- PH101010 – Portable self-powered light source
- PO200108 – Outdoor gear and supplies / Camping lanterns
- PO200109 – Outdoor gear and supplies / Flashlight
- PT118806 – LED flashlights
- PH401018 – Sunscreen with less than SPF 8
- PH401019 – Sun Blocks and Sun Screens
- PH400986 – Lotions – non-medicated (with sunscreen)
- PC010010 – Laundry detergent and supplies
- PC010020 – Dish soap and detergents including dishwasher products
- PC010030 – Cleaning and disinfecting sprays or wipes
- PC010200 – Trash bags
- PH400825 – Hand soap, bar soap, and body wash
- PP051161 – Pet supplies – non-commercial – dry pet food – 50lbs or less
- PC030425 – Clothing and related products / Business-to-Business / Children’s sports equipment
- PC040425 – Clothing and related products / Business-to-Consumer / Children’s sports equipment
- PT012300 – Children’s Toys
Customers may find it beneficial to map their products to these new codes prior to the start date of the sales tax holidays. For information on how to map tax codes, please refer to the Avalara Knowledge Center article on this topic.
If you have any further questions or concerns, please don’t hesitate to reach out to Avalara Product Support.
