Florida Expands its Tax-Free Holiday(s) for 2021

26 de May de 2021by Larson Accounting
15172.flim_.v104.bffffff.jpg

Learn how to save and what to buy during Florida’s tax free holidays for back-to-school and emergency preparedness — as well as its brand-new “Freedom Week.”

It’s not often that states revamp their annual tax-free holidays. But Florida, filled with post-pandemic enthusiasm, has drastically changed its tax-free holiday offerings for 2021. Shoppers not only get a completely new tax-free holiday geared at post-pandemic, economy-stimulating purchases (dubbed “Freedom Week”). But it’s ballooned its tax-free back-to-school shopping holiday into 10 days (it’s usually just three days long).

Here’s everything Florida shoppers need to know to get all the stuff they can without paying sales tax this year.

When is Florida’s tax-free holiday?

Florida is offering three tax-free holidays during 2021 at different times.

Florida Freedom Week (July 1-7)

Florida Freedom Week runs over the Fourth of July holiday, from July 1 to 7.

This sales tax holiday is brand new for 2021, and it’s geared at post-pandemic purchases. So what exactly are these eligible freedom-related purchases? The list includes:

  • Tickets to music events, sporting events, cultural events, movies, museums and state parks for admission through Dec. 31.
  • Boating and water supplies: Get the first $25 tax free when you buy snorkels, goggles and swimming masks; the first $50 tax free when you buy safety flares; the first $75 tax free when you buy life jackets, paddles, oars and coolers; the first $150 tax free when you buy water skis, wakeboards, kneeboards and inflatable water tubes; the first $300 tax free when you buy paddleboards and surfboards; and the first $500 tax free when you buy canoes and kayaks.
  • Camping supplies: You can get the first $30 tax free when you buy camping lanterns and flashlights; the first $50 tax free when you buy sleeping bags, portable hammocks and camping stoves; and the first $200 tax free when you buy tents.
  • Fishing supplies, general outdoor supplies and sports equipment: See a full list of what qualifies in this Florida Freedom Week press release.

Florida tax-free weekend for back-to-school (July 31-Aug.9)

For 2021, Florida’s tax-free weekend for back-to-school prep runs 12:01 a.m. on July 31, through 11:59 p.m. on Aug. 9. That’s 10 days, up from three days in past years. Shoppers save Florida’s 6% state sales tax plus local tax.

What qualifies for back-to-school tax-free weekend in Florida?

The following items are tax free:

  • Clothing and apparel costing $60 or less per item.
  • School supplies and related items costing $15 or less per item.
  • The first $1,000 for personal computers and related accessories (for noncommercial use only). This is a slight change over last year. In 2019, only computers selling for $1,000 or less were tax exempt. This year, things are more flexible — you can buy a computer for more than $1,000 and still have taxes waived on the first $1k you spend.

See a full list of tax-free items for 2020.

Most items that children need for school are tax exempt. This includes most clothing and most school supplies, but not all of them. Within each category, there are exemptions.

Because the guidelines aren’t necessarily intuitive, take some time on the Florida Department of Revenue website to familiarize yourself with Florida’s list of exempt and taxable items.

And keep in mind the spending thresholds, too. Tax exemptions apply only to clothing items $60 or less. There’s also no limit to how many tax-free items you can buy so, in essence, you could buy a hundred $50 jackets, and they’d all be tax-free.

Florida tax-free week for disaster preparedness (May 28-June 6)

This one’s also been extended to 10 days for 2021, running from May 28 to June 6.

In anticipation of hurricane season, Florida’s tax-free emergency preparedness week waives sales tax on items residents need to weather the storm.

When is Florida’s tax-free week for disaster preparedness?

Shop the Florida emergency-prep tax-free holiday from May 28 to June 6. That roughly matches the holiday’s usual Memorial-Day weekend timing, but the holiday is longer this year. In 2020, that same holiday ran May 29 to June 4 (seven days).

What does the Florida disaster-preparation tax-free week include?

Eligible items include generators costing $1,000 or less; flashlights and lanterns costing $40 or less; radios costing $50 or less; tarps costing $100 or less; coolers costing $60 or less; and batteries costing $50 or less. See the full list of eligible items.]

Does Florida’s tax-free holidays apply to online purchases?

Florida residents can also take advantage of the tax-free weekend online. Tax-free shopping applies to all transactions that are accepted and confirmed by the retailer during the tax-free period (even if delivery happens later). However, according to Florida law, shipping and handling charges are part of the sales price of an item, even if they are stated separately. This means that an order of a $59 jacket with $5 shipping would not be tax exempt because the item exceeds the $60 apparel threshold. Pro Tip: Bypass this rule by adding a couple more items to your order – shipping and handling will be divided by the number of items in the order to determine tax exemption.

Learn more about tax-free shopping and see a list of other state’s tax-free holidays for 2021.

Using coupons during Florida’s tax-free week

Coupons and discounts can help you buy more items tax free during Tax Free Weekend. That’s because it’s the total paid the retailer — not the sticker price — that determines whether sales tax is waived. For example, if you want a $65 jacket, it would not be tax free because it’s above the $60 threshold. However, if you have a coupon for 10% off, the price would fall below $60, and you’d get the jacket tax free. Note that manufacturers’ coupons are different. Because the retailer is reimbursed for the amount of the discount, manufacturer coupons do notrender an item tax exempt, even if they bring the customer’s price down below the threshold.

Are layaway items tax free during Florida’s sales tax holidays?

Yes. However, you must place the item on layaway during Tax Free Weekend, or pick it up during that time frame.

Source: Offers
By: Kristin McGrath

 

Larson Accounting