Relief from Hidden Taxes Filed by Senator John Legg & Representative Danny Burgess

Relief from Hidden Taxes Filed by Senator John Legg & Representative Danny Burgess

$140 Million Potential Taxpayer Savings – PRESS RELEASE

Pasco County —Senator John Legg and Representative Danny Burgess filed legislation that simplifies how Florida calculates sales tax.  Under current law, items subject to sales tax are charged the tax percentage for each full dollar amount and the partial cents are divided into tax brackets.  Senate Bill 506 and House Bill 355 would eliminate the sales tax brackets and would simply multiply the purchase amount by the sales tax rate, rounding down to the nearest whole cent.The sales tax brackets often charge higher percentages than the sales tax amount, effectively becoming a hidden tax to the consumer.  These brackets sometimes charge more than 13% sales tax on the partial dollar amount of a purchase.

“By rounding down with the sales tax, it calculates in favor of the consumer, instead of the State of Florida,” said Senator Legg. “Those cents add up to an estimated taxpayer savings ranging between $85 million to more than $140 million.”

Representative Burgess said, “Everyone in Florida deserves to keep more of their hard-earned money. This legislation eliminates three pages of the tax code and will affect Floridians of all incomes on every purchase they make. I look forward to providing tax relief to every Floridian during the 2015 Session.”

Taxpayer savings is based on a previous Revenue Estimating Conference report using numbers from last year.  Committee references for both Senate Bill 506 and House Bill 355 are pending.