Eligible taxpayers that file Florida corporate income/franchise tax returns with original due dates or extended due dates falling on or after Aug. 1, 2024, and before Feb. 18, 2025, will now have a due date of Feb. 18, 2025.
Florida Department of Revenue
The Florida Department of Revenue on Friday announced it has suspended corporate income tax due dates and extension periods for certain taxpayers affected by Hurricane Idalia in parts of Florida.
DOR: Starting July 1, 2023, taxpayers may apply for allocations of the additional credit amount available.
Eligible taxpayers that file Florida corporate income/franchise tax returns with original or extended due dates falling on or after April 12, 2023, and before Aug. 30, 2023, will now have a due date of Aug. 30, 2023.
On Jan. 26, in conjunction with our 2023 Hike the Hill advocacy event, FICPA State Tax Committee members held their annual Liaison Meeting with Florida Department of Revenue staff.
Florida Department of Revenue Executive Director Jim Zingale issued Emergency Order #22-003, extending certain filing due dates for Florida businesses located in counties impacted by Hurricane Ian.
On Wednesday, Florida Department of Revenue Executive Director Jim Zingale announced extended due dates for corporate income tax filers impacted by Hurricane Ian following the recent declaration from the Internal Revenue Service (IRS).
Advocacy Update: Stevenson retains seat as election season heats up
With election season on the horizon, we check in on those members of the Florida Legislature who have already retained their seats, and look ahead to the role CPAs can play over the coming months.
In this June 24 edition of Advocacy Update, we address:
- The re-election of one of our CPA Lawmakers, Rep. Cyndi Stevenson
- The Gulf Coast Chapter's recent meeting with Sen. Joe Gruters
- Our recent talk with AICPA President & CEO Barry Melancon
- The Florida CPA/PAC's preparation for election season
- An advocacy-focused edition of FICPA CEO Conversations
- Florida DBPR Secretary Melanie Griffin's address at MEGA
- Our Newly Certified Ceremony honoring Florida's Young CPAs
- And more!
Rep. Stevenson re-elected without opposition
Candidates from throughout the state scurried to finalize their plans to run for state office last week ahead of the Friday qualifying deadline for the November elections. Of the more than 390 candidates who qualified to be on the ballot, 37 are celebrating their re-election because no opponents qualified to run against them.
The FICPA’s very own Rep. Cyndi Stevenson, CPA, was among those celebrating over the weekend.
“It was a wonderful surprise! I’m humbled to continue to serve my fantastic district," Rep. Stevenson said. "We have so many people who have chosen to live here. They’re counting on St. Johns County and all of Florida to continue to be a place of freedom and opportunity. I am grateful to continue to represent them and the CPA profession in the Florida House.”
Congratulations to Rep. Stevenson, CPA, and all those elected without opposition:
- Sen. Jen Bradley – District 16
- Sen. Debbie Mayfield – District 19
- Senate President Kathleen Passidomo – District 28
- Sen. Erin Grall – District 29
- Sen. Gayle Harrell – District 31
- Sen. Jason Pizzo – District 37
- Sen. Bryan Avila – District 39
- Sen. Ana Maria Rodriguez – District 40
- Rep. Patt Maney – District 4
- Rep. Jason Shoaf – District 7
- Rep Allison Tant – District 9
- Rep. Chuck Brannan – District 10
- Rep. Wyman Duggan – District 12
- Rep. Joe Harding – District 24
- Rep Stan McClain – District 27
- Rep. Tyler Sirois – District 31
- Rep. Thad Altman – District 32
- Rep. Sam Killebrew – District 48
- Rep. Melony Bell – District 49
- Rep. Dianne Hart – District 63
- Rep. Will Robinson – District 71
- Rep. James Buchanan – District 74
- Rep. Michael Grant – District 75
- Rep. Spencer Roach – District 76
- Rep. Mike Giallombardo – District 79
- Rep. Bob Rommel – District 81
- Rep. Lauren Melo – District 82
- Rep. Kaylee Tuck – District 83
- Rep. Christine Hunschofsky – District 95
- Rep. Michael Gottlieb – District 102
- Rep. Felicia Robinson – District 104
- Rep. Tom Fabricio – District 110
- Rep. David Borrero – District 111
- Rep. Alex Rizo – District 112
- Rep. Daniel Perez – District 116
- Rep. Kevin Chambliss – District 117
Gulf Coast Chapter honors Sen. Gruters
On Tuesday, FICPA Chief External Affairs Officer Justin Thames attended the FICPA’s Gulf Coast Chapter meeting in Sarasota. More than 30 members attended the meeting, where Thames provided a legislative update and presented the FICPA’s 2022 Year in Review.
Also during the meeting, the Gulf Coast Chapter officers recognized Sen. Joe Gruters for his ongoing support of the FICPA and the CPA profession. Officers presented Sen. Gruters with a plaque featuring his appearance on the Spring 2022 cover of Florida CPA Today magazine, highlighting the 2022 Legislative Session.
A chat with AICPA President & CEO Barry Melancon
With election season around the corner, our Chief External Affairs Official Justin Thames caught up with AICPA President & CEO Barry Melancon at MEGA 2022 for quick chat about the role CPAs play in the political process.
Click on the video above to enjoy this advocacy-focused conversation and consider how you can help ensure that CPAs Count in Florida and across the country.
Florida CPA/PAC prepares for upcoming elections
As part of the vetting process for the Florida CPA/PAC, the FICPA Governmental Affairs Team continues interviewing candidates running for state office as part of the Florida Chamber of Commerce Political Institute (FCPI) and Florida Association of Professional Lobbyist (FAPL) 2022 Candidate Interviews.
Through these interviews, hundreds of candidates statewide are evaluated on a rigorous set of factors, including responses to the Florida CPA/PAC’s Candidate Questionnaire.
We encourage FICPA members to submit recommendations of candidates running for state office in their local area. Please send recommendations to [email protected].
Participating in candidate interviews, receiving member recommendations and thoroughly researching candidates helps ensure the Florida CPA/PAC supports candidates who, once elected, will prioritize the interests of Florida CPAs and the future of the profession.
FICPA CEO Conversations: Shelly Weir and Justin Thames
The latest edition of Shelly Weir's FICPA CEO Conversations features an in-depth discussion on all things Tallahassee with our Chief External Affairs Officer, Justin Thames.
Shelly and Justin review the key issues from the 2022 Legislative Session and recent Special Sessions, look ahead to the 2022 election season, and discuss how to champion the CPA profession to students and the public at large.
As Justin mentions in the video, if you have a story or experience you'd like to share to help us promote the CPA profession, or would like to assist in our awareness campaign in the months ahead, contact [email protected].
AICPA’s PEEC and ASB issue new NOCLAR requirements
The new requirements for AICPA members under the AICPA Code of Conduct and Statement on Auditing Standards No. 147 outline CPAs responsibilities when they encounter noncompliance with laws or regulations (NOCLAR) when working with a client or within their employing organization.
An overview of SAS 147, which is effective for audits of financial statements for periods beginning on or after June 30, 2023, is available to AICPA members.
Secretary Melanie Griffin keynotes MEGA Conference
The FICPA was honored to welcome Florida Department of Business and Professional Regulation (DBPR) Secretary Melanie Griffin as keynote speaker at the 2022 MEGA Conference in Orlando this month. Leading DBPR and overseeing the Florida Board of Accountancy (BOA), Secretary Griffin shared insight and highlights from her first few months as head of the agency.
Secretary Griffin is an attorney with Shumaker, Loop & Kendrick and senior advisor for business-to-business relationships for Shumaker Advisors Florida. She also is the founder and owner of Spread Your Sunshine, a business that provides speaking and professional-training services and designs, manufactures and sells inspirational products and gifts.
As a small business owner, Secretary Griffin has a unique perspective on government and how DBPR can best serve its clients and constituencies. During her keynote presentation, “The DBPR and Florida CPAs: A Partnership for Success,” Secretary Griffin gave an overview of DBPR’s strategic plan, including numerous technology enhancements, and discussed her leadership style and she manages the agency.
Secretary Griffin also highlighted updates to DBPR’s newsletter and website, BOA efforts to engage and educate licensees, streamlining the licensure process, the future of compliance, and how the Clay Ford Scholarship is helping build the next generation of CPAs.
MEGA Conference celebrates new CPAs
During last week’s MEGA Conference in Orlando, the FICPA hosted a Newly Certified Ceremony. During the event, we recognized 26 newly licensed CPAs and welcomed them to our professional community.
We warmly congratulate our honorees and wish them luck as they embark on promising new careers!
- Asad Ahmad
- David Belnap
- Maria Benero
- Rachel Bollone
- Robyn Clark
- Paul Compton
- Trisha Das
- Meleah Davies
- Damone Downs
- Deanna Duell
- Danison Fronda-Tietz
- Thomas Garvey
- Nathan Gauger
- Karen Greaves
- Nathalie Heaney
- Ingrid Hernandez
- Shirley Hurley
- Paola Jimenez
- Richard Kennedy
- Ariel Mosley
- Terry Mullen
- Stacy Ann Powell
- Nathan Pritchett
- Julia Scher
- Nadine Thomas
- Samantha Willis
IRS increases mileage rate for remainder of 2022
Last Thursday, the IRS announced an increase in the optional standard mileage rate for the final six months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes.
For the final six months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up four cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up four cents from the rate effective at the start of 2022.
These new rates become effective July 1, 2022. The IRS provided legal guidance on the new rates in Announcement 2022-13, issued today. For travel from Jan. 1 through June 30, 2022, taxpayers should use the rates set forth in Notice 2022-03.
Midyear increases in the optional mileage rates are rare. The IRS last made such an increase in 2011.
|
Purpose |
Rates 1/1 through 6/30/22 |
Rates 7/1 through 12/31/22 |
|
Business |
58.5 |
62.5 |
|
Medical/Moving |
18 |
22 |
|
Charitable |
14 |
14 |
Four sales tax holidays begin July 1
Beginning next Friday, July 1, consumers can purchase qualifying supplies exempt from tax during four sales and use tax holidays.
Tax exemptions beginning July 1 include admission fees and outdoor activity supplies; ENERGY STAR appliances; children’s diapers and apparel; and impact-resistant doors, garage doors and windows.
DOR’s Tax Information Publications (TIPs) outline qualifying items. The Freedom Week tax holiday extends through July 7, 2022. The tax holidays on appliances and children’s items extend through June 30, 2023. And the tax holiday on impact-resistant doors, garage doors and windows extends through June 30, 2024.
DOR TIPs
The Florida Department of Revenue has published these helpful Tax Information Publications (TIPs) in 2022.
Current Interest Rates
Floating Rate of Interest Remains at 7 Percent for the Period July 1, 2022, Through December 31, 2022
May 4, 2022
The rate of interest for the period July 1, 2022, through December 31, 2022, is 7 percent. The daily interest rate factor to be used for this period is 0.000191781. The daily interest rate is named a factor because it is not expressed as a percentage. This rate is subject to change effective January 1, 2023.
Administration
Florida Tax Credit Scholarship Program Tax Credit Cap Will Increase
June 6, 2022
Section 1002.395(5), Florida Statutes, provides an increase of 25 percent of the tax credit cap when the annual tax credit amount for the prior fiscal year is equal to or greater than 90 percent of the tax credit cap applicable to that year. The tax credit amount allocated for the 2021-2022 state fiscal year now exceeds 90 percent of the $873,565,674 tax credit cap. Therefore, the tax credit cap amount will increase to $1,091,957,093 ($873,565,674 times 125 percent [1.25]) for the 2022-2023 state fiscal year.
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit 2022 Legislative Changes
May 11, 2022
Taxpayers with corporate income/franchise taxable years beginning on or after January 1, 2021, may apply to the Florida Department of Revenue (Department) for an allocation of the tax credits available for state fiscal year 2021-2022. The application must be filed by the day before the due date of the Florida Corporate Income/Franchise Tax Return (Form F-1120), or if extended, the day before the extended due date. The Department will send notification of approval or denial of the request for an allocation of the tax credits.
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit for Corporate Income Tax and Insurance Premium Tax
April 28, 2022
Legislation is currently pending that would allow corporate income taxpayers and insurance premium taxpayers to seek a tax credit allocation from the 2021-2022 state fiscal year cap. The Department is accepting applications based on the pending legislation. Allocation approvals are subject to the legislation becoming law.
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit
Feb. 7, 2022
Florida’s New Worlds Reading Initiative was established in 2021 under the Florida Department of Education to improve literacy skills and promote a love of reading by providing high-quality, free books to students in kindergarten through fifth grade who are reading below grade level. Florida’s Strong Families Tax Credit was established in 2021 under the Florida Department of Children and Families to provide services to prevent child abuse, engage absent fathers in being more active in their children’s lives, provide books to eligible children, and assist families of children with chronic illness.
Communications Services Tax
Change in Local Communications Services Tax Rate Beginning May 1, 2022
Jan. 27, 2022
Beginning May 1, 2022, the local communications services tax (CST) rate for the Town of Astatula will change. The total local CST rate includes: (1) the local rate imposed under the CST statute; and (2) any county discretionary sales surtax imposed under the sales and use tax statute.
Corporate Income Tax
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit 2022 Legislative Changes
May 11, 2022
Taxpayers with corporate income/franchise taxable years beginning on or after January 1, 2021, may apply to the Florida Department of Revenue (Department) for an allocation of the tax credits available for state fiscal year 2021-2022. The application must be filed by the day before the due date of the Florida Corporate Income/Franchise Tax Return (Form F-1120), or if extended, the day before the extended due date. The Department will send notification of approval or denial of the request for an allocation of the tax credits.
Florida Corporate Income Tax Adoption of 2022 Internal Revenue Code
May 9, 2022
Each year, the Florida Legislature must consider adopting the current Internal Revenue Code (Title 26, United States Code) to ensure certain tax definitions and the calculation of adjusted federal income will be consistent between the Internal Revenue Code (IRC) and the Florida Income Tax Code (Chapter 220, Florida Statutes [F.S.]). The Florida corporate income tax “piggybacks” federal income tax determinations and uses adjusted federal income as the starting point for computing Florida net income.
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit for Corporate Income Tax and Insurance Premium Tax
April 28, 2022
Legislation is currently pending that would allow corporate income taxpayers and insurance premium taxpayers to seek a tax credit allocation from the 2021-2022 state fiscal year cap. The Department is accepting applications based on the pending legislation. Allocation approvals are subject to the legislation becoming law.
Florida Corporate Income Tax 2022 Automatic Refund
Jan. 13, 2022
An automatic refund is available for Florida corporate income/franchise tax returns filed on or before Feb. 1, 2022, for taxable years beginning on or after April 1, 2019, and on or before March 31, 2020 (subject to any 2022 law change). For most taxpayers, this will be the return for taxable year ending Dec. 31, 2020.
Florida Corporate Income/Franchise Tax – Internship Tax Credit Program
Jan. 4, 2022
For taxable years beginning during the 2022 and 2023 calendar year, a student internship tax credit is available against the Florida corporate income/franchise tax. The Florida Internship Tax Credit Program (Program) allows credit for up to five student interns per taxable year, per corporation. The credit amount is $2,000 per student intern (maximum of $10,000 for each taxable year). A total of $2.5 million in credits are available for each of the two years of the Program.
Fuel Tax
Florida Motor Fuel Tax Relief Act of 2022 October 1, 2022 through October 31, 2022 – Local Gov't and Mass Transit System Operators
June 14, 2022
The Florida Motor Fuel Tax Relief Act of 2022 reduces the tax rate on motor fuel by 25.3 cents per gallon from Saturday, October 1, 2022 through Monday, October 31, 2022. The reduced tax rate applies to all gasoline products, any product blended with gasoline, or any fuel placed in the storage supply tank of a gasoline-powered motor vehicle.
Florida Motor Fuel Tax Relief Act of 2022 October 1, 2022 through October 31, 2022 – Retail Dealers
June 14, 2022
The Florida Motor Fuel Tax Relief Act of 2022 reduces the tax rate on motor fuel by 25.3 cents per gallon from Saturday, October 1, 2022 through Monday, October 31, 2022. The reduced tax rate applies to all gasoline products, any product blended with gasoline, or any fuel placed in the storage supply tank of a gasoline-powered motor vehicle.
Florida Motor Fuel Tax Relief Act of 2022 October 1, 2022 through October 31, 2022 – Terminal Suppliers
June 14, 2022
The Florida Motor Fuel Tax Relief Act of 2022 reduces the tax rate on motor fuel by 25.3 cents per gallon from Saturday, October 1, 2022 through Monday, October 31, 2022. The reduced tax rate applies to all gasoline products, any product blended with gasoline, or any fuel placed in the storage supply tank of a gasoline-powered motor vehicle.
Florida Motor Fuel Tax Relief Act of 2022 October 1, 2022 through October 31, 2022 – Wholesalers and Importers
June 14, 2022
The Florida Motor Fuel Tax Relief Act of 2022 reduces the tax rate on motor fuel by 25.3 cents per gallon from Saturday, October 1, 2022 through Monday, October 31, 2022. The reduced tax rate applies to all gasoline products, any product blended with gasoline, or any fuel placed in the storage supply tank of a gasoline-powered motor vehicle.
Gross Receipts Tax
Gross Receipts Tax Index Prices for the Period July 1, 2022 Through June 30, 2023
May 20, 2022
Every year on July 1, the index prices used by distribution companies to calculate the gross receipts tax on the sale or transportation of natural or manufactured gas to retail consumers are adjusted as provided by law. Beginning with customer bills dated on or after July 1, 2022, distribution companies must use the index prices listed below when completing the Gross Receipts Tax Return (Form DR-133).
Insurance Premium Tax
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit 2022 Legislative Changes
May 11, 2022
Taxpayers with corporate income/franchise taxable years beginning on or after January 1, 2021, may apply to the Florida Department of Revenue (Department) for an allocation of the tax credits available for state fiscal year 2021-2022. The application must be filed by the day before the due date of the Florida Corporate Income/Franchise Tax Return (Form F-1120), or if extended, the day before the extended due date. The Department will send notification of approval or denial of the request for an allocation of the tax credits.
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit for Corporate Income Tax and Insurance Premium Tax
April 28, 2022
Legislation is currently pending that would allow corporate income taxpayers and insurance premium taxpayers to seek a tax credit allocation from the 2021-2022 state fiscal year cap. The Department is accepting applications based on the pending legislation. Allocation approvals are subject to the legislation becoming law.
Intangible Tax
2022 Governmental Leasehold Intangible Tax Valuation Factor Table
Jan. 5, 2022
Florida law provides that all leasehold estates or related possessory interest in property of the United States, the State of Florida or any of its political subdivisions, municipalities, agencies, authorities or other governmental units are taxed as intangible personal property if the leased property is undeveloped or predominantly used for a residential or commercial purpose and rental payments are due in consideration of the leasehold estate or possessory interest. Unless the leasehold estate qualifies for specific exemptions, lessees of governmentally owned property are required to file an annual intangible tax return.
Sales and Use Tax
Electronic File and Pay Requirements for Taxes, Fees, and Surcharges
June 24, 2022
Effective January 1, 2023, taxpayers must file tax returns and remit payments of taxes and fees electronically if the tax amount paid in the prior state fiscal year (July 1 – June 30) is $5,000 or more. This requirement applies separately to each tax and is based on the amounts remitted as estimated payments, tentative payments, tax return payments, or any other type of payment made for the specific tax.
Indexed Tax on Asphalt Increases to 98 Cents Per Ton for the Period July 1, 2022 Through June 30, 2023
June 9, 2022
The tax rate used by contractors who manufacture and use asphalt during fiscal year July 1, 2022 through June 30, 2023, will increase from 84 cents per ton to 98 cents per ton. The indexed tax is adjusted on July 1 of each year, using a producer price index published by the U.S. Department of Labor, Bureau of Labor Statistics.
State Sales Tax Rate Imposed on Retail Sales of New Mobile Homes Reduced to 3%
May 27, 2022
Beginning July 1, 2022, the state sales tax rate imposed on the retail sale of a new mobile home is reduced from 6% to 3%. Any applicable discretionary sales surtax (local option sales tax) continues to apply.
Tax-Exempt Admissions Expanded
May 24, 2022
Effective July 1, 2022, admissions to certain FIFA World Cup matches, Formula One Grand Prix races and Daytona 500 races are exempt from sales tax.
2022 Sales Tax Exemption Period on Children’s Books – May 14, 2022, Through August 14, 2022
May 6, 2022
Florida’s first sales tax exemption period on children’s books begins Saturday, May 14, 2022, and ends Sunday, August 14, 2022. During the sales tax exemption period, tax is not due on the retail sale of children’s books.
2022 Disaster Preparedness Sales Tax Holiday May 28, 2022, Through June 10, 2022
May 6, 2022
The 2022 Disaster Preparedness Sales Tax Holiday begins on Saturday, May 28, 2022, and ends on Friday, June 10, 2022. During the sales tax holiday period, tax is not due on the retail sale of eligible items related to disaster preparedness.
Freedom Week Sales Tax Holiday on Specific Admissions and Outdoor Activity Supplies July 1, 2022, Through July 7, 2022
May 6, 2022
The sales tax holiday begins on Friday, July 1, 2022, and ends on Thursday, July 7, 2022. During this sales tax holiday period, tax is not due on the retail sale of admissions to music events, sporting events, cultural events, specified performances, movies, museums, state parks, and fitness facilities. Also exempt from sales tax during this holiday period are eligible boating and water activity supplies, camping supplies, fishing supplies, general outdoor supplies, residential pool supplies and sporting equipment.
Sales Tax Exemption Period on New ENERGY STAR Appliances – July 1, 2022, Through June 30, 2023
May 6, 2022
Florida’s sales tax exemption period on new ENERGY STAR appliances for noncommercial use begins Friday, July 1, 2022, and ends Friday, June 30, 2023. During this sales tax exemption period, tax is not due on the retail sale of eligible new ENERGY STAR appliances purchased for noncommercial use. The rental of eligible new ENERGY STAR appliances does not qualify for the exemption.
Sales Tax Exemption Period on Children's Diapers and Baby and Toddler Clothing, Apparel and Shoes – July 1, 2022, Through June 30, 2023
May 6, 2022
Florida’s first sales tax exemption period on children’s diapers and baby and toddler clothing, apparel, and shoes begins Friday, July 1, 2022, and ends Friday, June 30, 2023. During this sales tax exemption period, tax is not due on the retail sale of children’s diapers or on baby and toddler clothing, apparel, and shoes primarily intended for children age 5 or younger
Sales Tax Exemption Period on Impact-Resistant Doors, Garage Doors, and Windows – July 1, 2022, Through June 30, 2024
May 6, 2022
A temporary sales tax exemption period on impact-resistant doors, impact-resistant garage doors, and impact-resistant windows begins July 1, 2022, and ends June 30, 2024. During this sales tax exemption period, tax is not due on the retail sales of impact-resistant doors, impact-resistant garage doors, and impact-resistant windows for commercial or noncommercial use.
2022 Back-to-School Sales Tax Holiday – July 25, 2022, Through August 7, 2022
May 6, 2022
During the sales tax holiday period, tax is not due on the retail sale of:
- Clothing, footwear, and certain accessories with a sales price of $100 or less per item*
- Certain school supplies with a sales price of $50 or less per item,
- Learning aids and jigsaw puzzles with a sales price of $30 or less*
- Personal computers and certain computer-related accessories with a sales price of $1,500 or less, when purchased for noncommercial home or personal use
- Read the full TIP here.
2022 Sales Tax Holiday for Tools Commonly Used by Skilled Trade Workers – September 3, 2022, Through September 9, 2022
May 6, 2022
Florida’s 2022 ‘Tool Time’ Sales Tax Holiday begins on Saturday, September 3, 2022, and ends on Friday, September 9, 2022. During this sales tax holiday period, tax is not due on the retail sale of eligible items related to tools commonly used by skilled trade workers.
Madison County Increases Its Tourist Development Tax Rate From 3% to 5%
Jan. 5, 2022
The Madison County Board of County Commissioners adopted Ordinance No. 2021-246 increasing the tourist development tax rate from 3% to 5% on transient rental transactions occurring in Madison County.
Severance Tax
Gas and Sulfur Production Tax Rates for 2022-2023
May 10, 2022
On July 1 of each year, the tax rates for production of gas and sulfur are adjusted as provided by law. The adjusted rates must be used when completing the Declaration of Estimated Gas and Sulfur Production Tax (Form DR-144ES) beginning with the July 2022 estimated payment. Form DR-144ES will be mailed to all active accounts during the last week of July.
Solid Mineral Tax Rates for 2022
March 21, 2022
Phosphate rock producers are subject to tax as provided by law. Use the following rate when completing the Declaration/Installment Payment of Estimated Solid Mineral Severance Tax (Form DR-142ES).
Contribute
The Florida CPA/PAC supports the politicians who stand up for CPAs. We back the candidates and incumbents who will ensure CPAs and their clients are included in the legislative process. It is your voluntary contributions that help protect the CPA license.
Please note: Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others.
Advocacy Update: Legislature passes condo reform in Special Session
The Florida Legislature reconvened this week for its latest Special Session, passing both condominium and property insurance reforms, which have been signed into law by Gov. Ron DeSantis.
In this May 27 edition of Advocacy Update, we address:
- What you need to know about the new condo regulations
- The details of the new property insurance law
- Our recently released, advocacy-focused issue of Florida CPA Today magazine
- The Disaster Preparedness Sales Tax Holiday beginning this Saturday
- IRS FAQ updates for the 2021 Child Tax Credit and Advance Child Tax Credit
- And the latest Department of Revenue TIPs
Latest News
Legislature Adds Condo Reform to Special Session
This week, the Florida Legislature convened in a Special Session to consider legislation related to property insurance, reinsurance, changes to the Florida Building Code to improve the affordability of property insurance, the Office of Insurance Regulation, civil remedies and appropriations.
On Tuesday, the Legislature expanded the scope of the Special Session to include legislation addressing the tragic Surfside Chaplain Towers condominium collapse in June 2021. In the Legislature’s announcement, Florida's future House Speaker, Rep. Danny Perez, expressed his aspirations for the changes adopted this week.
“After I witnessed the tragedy of Surfside, the No. 1 priority for me this past session was to pass meaningful condominium reform,” Rep. Perez said. “I have always been willing to discuss what that looks like, but I was never willing to pass legislation that did not solve the real issue, which is to ensure there is association funding to fix the problems discovered during inspections. I am hopeful, with the commitments from Senate leadership, to pass real reform this Special Session, and in doing so honor the lives lost as well as the survivors and their loved ones.”
The legislation, House Bill 5D, amends Florida’s Building Codes Act, Condominium Act and Cooperative Act to enact new requirements meant to address concerns raised in the aftermath of the collapse. The House Appropriations Committee considered the bill late Tuesday and amended it to the Senate’s roofing bill related to property insurance. The legislation passed both chambers Wednesday and Gov. DeSantis signed it into law Thursday.
Here’s what you need to know about the new law:
1. Requires milestone structural inspections for condominium and cooperative association buildings three stories in height and 30 years old by licensed architect or engineer by Dec. 31, 2024
2. Requires “structural integrity reserve studies” for condominium and cooperative associations at least every 10 years. The following items are required to be included:
- Roof
- Load-bearing walls or other primary structural members
- Floor
- Foundation
- Fireproofing and fire protection systems
- Plumbing
- Electrical systems
- Waterproofing and exterior painting
- Windows
- Any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and the failure to replace or maintain such item negatively affects the items listed above as determined by the licensed engineer or architect performing the visual inspection portion of the structural integrity reserve study
3. Effective Dec. 1, 2024, an association or the developer may not waive funding reserves
4. Requires structural integrity reserve studies to be provided to unit owners, developers, buyers and renters
5. Requires condominium and cooperative associations to provide the following information to the Florida Division of Condominiums, Timeshares and Mobile Homes by Jan. 1, 2023:
- The number of buildings in the association that are three stories or higher in height
- The number of units in such buildings
- The address of such buildings
- The counties in which all buildings are located
For more information about the changes, read House Bill 5D and House Analysis of House Bill 5D.
Property Insurance Bills Considered During Session D
In advance of Special Session 2022D, House Speaker Chris Sprowls (R-Clearwater) and Senate President Wilton Simpson (R-Trilby) released memorandums highlighting property insurance legislation that was passed on May 25 and signed into law on May 26.
SB 2D will do the following:
- Create the Reinsurance to Assist Policyholders (RAP) program for insurance companies and allocate $2 billion to the program. The coverage will be at no cost to the insurer and will allow quicker reimbursement for hurricane damages.
- Allocate $150 million for the My Safe Florida Home Program, which will provide funding to residents for hurricane mitigation inspections and grant funding for home hardening upgrades. For every dollar that the homeowner provides, the program will provide $2, allowing homeowners to receive up to $10,000.
- Prohibit contractors from soliciting consumers to make a claim for roof damage unless the solicitation states the consumer must pay the deductible, that a contractor paying or waiving the deductible is a felony and that it is a felony to knowingly file a claim that contains false, misleading or fraudulent information.
- Prohibit insurers from refusing to write or renew a policy on homes with roofs based solely on a roof’s age (less than 15 years old). If a roof is at least 15 years old, insurers must allow the homeowner to have a roof inspection before the homeowner has to replace the roof in order to obtain or renew an insurance policy.
- Limit contingency risk multipliers by allowing attorney fee multipliers in insurance litigation only in specific and rare situations. Eliminate attorney fee awards in assignment of benefits cases and prevent transfers or assignment to collect attorney fees in property insurance litigation.
- Require a policyholder to prove the property insurance company breached its contract before winning a bad faith lawsuit. Require a policyholder to opt out of a separate roof deductible and ensure the roof deductible provision is unambiguous and clear.
- Analyze an insurer’s failure within two months after the insurance company is referred to the Department of Financial Services’ (DFS) Division of Rehabilitation and Liquidation. DFS must review the Office of Insurance Regulation's oversight of the failed insurer.
- Establish an exception to the Florida Building Code to allow roofs that are more than 25 percent damaged but comply with the 2007 Florida Building Code to be repaired instead of mandatory replacement.
- Require insurers to notify a policyholder that they are able to request a copy of an estimate of the loss generated by the insurance adjuster. The insurer must send the estimate to the policyholder within seven days after receiving the request.
Available Now: Florida CPA Today – 2022 Legislative Report
The Spring 2022 Legislative Edition of Florida CPA Today is now available online!
In this advocacy-focused issue, you'll find:
- An in-depth breakdown of Florida's 2022 Legislative Session
- An exclusive Q&A with Florida DBPR Secretary Melanie Griffin
- A recap of our 2022 FICPA Advocacy Days
- Articles on the CPA exam, Florida's 2022 tax package, and changes to the Department of Revenue’s audit process
Click here to enjoy our annual legislative issue!
Disaster Preparedness Sales Tax Holiday and Additional Resources
Earlier this week, the FICPA published a special edition of Advocacy Update focused on disaster preparedness. With hurricane season nearly here, we encourage you to review these resources today to make sure you're ready for every eventuality in the weeks and months to come.
We also want to remind you that, beginning this Saturday, May 28, consumers can purchase qualifying disaster preparedness supplies exempt from tax during the 2022 Disaster Preparedness Sales Tax Holiday.
“Hurricane season can be a trying time but preparing in advance for disasters is the best way to stay safe,” said Jim Zingale, Executive Director of the Florida Department of Revenue (DOR). “The 2022 Disaster Preparedness Sales Tax Holiday helps families stock up on essentials while saving money.”
DOR’s Tax Information Publication (TIP) outlines qualifying items ranging from cans or pouches of wet pet food selling for $2 or less to portable generators selling for $1,000 or less. The sales tax holiday extends through June 10.
IRS Revises 2021 Child Tax Credit and Advance Child Tax Credit
The IRS has issued a Fact Sheet updating the 2021 Child Tax Credit and Advance Child Tax Credit frequently asked questions (FAQs). The updates help eligible families properly claim the credit when they prepare and file their 2021 tax return.
The FAQs revisions are:
- • Topic A: General Information: updated questions 1-5, 8-11, 13- 16
- • Topic E: Advance Payment Process of the Child Tax Credit: updated questions 2-3
- • Topic F: Updating Your Child Tax Credit Information During 2021: removed questions 1-2 and updated 3-4
- • Topic G: Receiving Advance Child Tax Credit Payments: updated questions 1, 6-7, 9-11
- • Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return: updated questions 1-2, 9 and removed 10
- • Topic J: Unenrolling from Advance Payments: updated question 1 and removed 2-7
- • Topic K: Verifying Your Identity to View your Payments 2021 Child Tax Credit: Updated 2-3,5-6 and removed 7
- • Topic L: Commonly Asked Shared-Custody Questions: Updated 1-2
Click here to read the full IRS Fact Sheet.
DOR TIPs
The Florida Department of Revenue has published these helpful Tax Information Publications (TIPs) in 2022.
Current Interest Rates
Floating Rate of Interest Remains at 7 Percent for the Period July 1, 2022, Through December 31, 2022
May 4, 2022
The rate of interest for the period July 1, 2022, through December 31, 2022, is 7 percent. The daily interest rate factor to be used for this period is 0.000191781. The daily interest rate is named a factor because it is not expressed as a percentage. This rate is subject to change effective January 1, 2023.
Administration
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit 2022 Legislative Changes
May 11, 2022
Taxpayers with corporate income/franchise taxable years beginning on or after January 1, 2021, may apply to the Florida Department of Revenue (Department) for an allocation of the tax credits available for state fiscal year 2021-2022. The application must be filed by the day before the due date of the Florida Corporate Income/Franchise Tax Return (Form F-1120), or if extended, the day before the extended due date. The Department will send notification of approval or denial of the request for an allocation of the tax credits.
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit for Corporate Income Tax and Insurance Premium Tax
April 28, 2022
Legislation is currently pending that would allow corporate income taxpayers and insurance premium taxpayers to seek a tax credit allocation from the 2021-2022 state fiscal year cap. The Department is accepting applications based on the pending legislation. Allocation approvals are subject to the legislation becoming law.
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit
Feb. 7, 2022
Florida’s New Worlds Reading Initiative was established in 2021 under the Florida Department of Education to improve literacy skills and promote a love of reading by providing high-quality, free books to students in kindergarten through fifth grade who are reading below grade level. Florida’s Strong Families Tax Credit was established in 2021 under the Florida Department of Children and Families to provide services to prevent child abuse, engage absent fathers in being more active in their children’s lives, provide books to eligible children, and assist families of children with chronic illness.
Communications Services Tax
Change in Local Communications Services Tax Rate Beginning May 1, 2022
Jan. 27, 2022
Beginning May 1, 2022, the local communications services tax (CST) rate for the Town of Astatula will change. The total local CST rate includes: (1) the local rate imposed under the CST statute; and (2) any county discretionary sales surtax imposed under the sales and use tax statute.
Corporate Income Tax
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit 2022 Legislative Changes
May 11, 2022
Taxpayers with corporate income/franchise taxable years beginning on or after January 1, 2021, may apply to the Florida Department of Revenue (Department) for an allocation of the tax credits available for state fiscal year 2021-2022. The application must be filed by the day before the due date of the Florida Corporate Income/Franchise Tax Return (Form F-1120), or if extended, the day before the extended due date. The Department will send notification of approval or denial of the request for an allocation of the tax credits.
Florida Corporate Income Tax Adoption of 2022 Internal Revenue Code
May 9, 2022
Each year, the Florida Legislature must consider adopting the current Internal Revenue Code (Title 26, United States Code) to ensure certain tax definitions and the calculation of adjusted federal income will be consistent between the Internal Revenue Code (IRC) and the Florida Income Tax Code (Chapter 220, Florida Statutes [F.S.]). The Florida corporate income tax “piggybacks” federal income tax determinations and uses adjusted federal income as the starting point for computing Florida net income.
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit for Corporate Income Tax and Insurance Premium Tax
April 28, 2022
Legislation is currently pending that would allow corporate income taxpayers and insurance premium taxpayers to seek a tax credit allocation from the 2021-2022 state fiscal year cap. The Department is accepting applications based on the pending legislation. Allocation approvals are subject to the legislation becoming law.
Florida Corporate Income Tax 2022 Automatic Refund
Jan. 13, 2022
An automatic refund is available for Florida corporate income/franchise tax returns filed on or before Feb. 1, 2022, for taxable years beginning on or after April 1, 2019, and on or before March 31, 2020 (subject to any 2022 law change). For most taxpayers, this will be the return for taxable year ending Dec. 31, 2020.
Florida Corporate Income/Franchise Tax – Internship Tax Credit Program
Jan. 4, 2022
For taxable years beginning during the 2022 and 2023 calendar year, a student internship tax credit is available against the Florida corporate income/franchise tax. The Florida Internship Tax Credit Program (Program) allows credit for up to five student interns per taxable year, per corporation. The credit amount is $2,000 per student intern (maximum of $10,000 for each taxable year). A total of $2.5 million in credits are available for each of the two years of the Program.
Gross Receipts Tax
Gross Receipts Tax Index Prices for the Period July 1, 2022 Through June 30, 2023
May 20, 2022
Every year on July 1, the index prices used by distribution companies to calculate the gross receipts tax on the sale or transportation of natural or manufactured gas to retail consumers are adjusted as provided by law. Beginning with customer bills dated on or after July 1, 2022, distribution companies must use the index prices listed below when completing the Gross Receipts Tax Return (Form DR-133).
Insurance Premium Tax
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit 2022 Legislative Changes
May 11, 2022
Taxpayers with corporate income/franchise taxable years beginning on or after January 1, 2021, may apply to the Florida Department of Revenue (Department) for an allocation of the tax credits available for state fiscal year 2021-2022. The application must be filed by the day before the due date of the Florida Corporate Income/Franchise Tax Return (Form F-1120), or if extended, the day before the extended due date. The Department will send notification of approval or denial of the request for an allocation of the tax credits.
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit for Corporate Income Tax and Insurance Premium Tax
April 28, 2022
Legislation is currently pending that would allow corporate income taxpayers and insurance premium taxpayers to seek a tax credit allocation from the 2021-2022 state fiscal year cap. The Department is accepting applications based on the pending legislation. Allocation approvals are subject to the legislation becoming law.
Intangible Tax
2022 Governmental Leasehold Intangible Tax Valuation Factor Table
Jan. 5, 2022
Florida law provides that all leasehold estates or related possessory interest in property of the United States, the State of Florida or any of its political subdivisions, municipalities, agencies, authorities or other governmental units are taxed as intangible personal property if the leased property is undeveloped or predominantly used for a residential or commercial purpose and rental payments are due in consideration of the leasehold estate or possessory interest. Unless the leasehold estate qualifies for specific exemptions, lessees of governmentally owned property are required to file an annual intangible tax return.
Sales and Use Tax
State Sales Tax Rate Imposed on Retail Sales of New Mobile Homes Reduced to 3%
May 27, 2022
Beginning July 1, 2022, the state sales tax rate imposed on the retail sale of a new mobile home is reduced from 6% to 3%. Any applicable discretionary sales surtax (local option sales tax) continues to apply.
Tax-Exempt Admissions Expanded
May 24, 2022
Effective July 1, 2022, admissions to certain FIFA World Cup matches, Formula One Grand Prix races and Daytona 500 races are exempt from sales tax.
2022 Sales Tax Exemption Period on Children’s Books – May 14, 2022, Through August 14, 2022
May 6, 2022
Florida’s first sales tax exemption period on children’s books begins Saturday, May 14, 2022, and ends Sunday, August 14, 2022. During the sales tax exemption period, tax is not due on the retail sale of children’s books.
2022 Disaster Preparedness Sales Tax Holiday May 28, 2022, Through June 10, 2022
May 6, 2022
The 2022 Disaster Preparedness Sales Tax Holiday begins on Saturday, May 28, 2022, and ends on Friday, June 10, 2022. During the sales tax holiday period, tax is not due on the retail sale of eligible items related to disaster preparedness.
Freedom Week Sales Tax Holiday on Specific Admissions and Outdoor Activity Supplies July 1, 2022, Through July 7, 2022
May 6, 2022
The sales tax holiday begins on Friday, July 1, 2022, and ends on Thursday, July 7, 2022. During this sales tax holiday period, tax is not due on the retail sale of admissions to music events, sporting events, cultural events, specified performances, movies, museums, state parks, and fitness facilities. Also exempt from sales tax during this holiday period are eligible boating and water activity supplies, camping supplies, fishing supplies, general outdoor supplies, residential pool supplies and sporting equipment.
Sales Tax Exemption Period on New ENERGY STAR Appliances – July 1, 2022, Through June 30, 2023
May 6, 2022
Florida’s sales tax exemption period on new ENERGY STAR appliances for noncommercial use begins Friday, July 1, 2022, and ends Friday, June 30, 2023. During this sales tax exemption period, tax is not due on the retail sale of eligible new ENERGY STAR appliances purchased for noncommercial use. The rental of eligible new ENERGY STAR appliances does not qualify for the exemption.
Sales Tax Exemption Period on Children's Diapers and Baby and Toddler Clothing, Apparel and Shoes – July 1, 2022, Through June 30, 2023
May 6, 2022
Florida’s first sales tax exemption period on children’s diapers and baby and toddler clothing, apparel, and shoes begins Friday, July 1, 2022, and ends Friday, June 30, 2023. During this sales tax exemption period, tax is not due on the retail sale of children’s diapers or on baby and toddler clothing, apparel, and shoes primarily intended for children age 5 or younger
Sales Tax Exemption Period on Impact-Resistant Doors, Garage Doors, and Windows – July 1, 2022, Through June 30, 2024
May 6, 2022
A temporary sales tax exemption period on impact-resistant doors, impact-resistant garage doors, and impact-resistant windows begins July 1, 2022, and ends June 30, 2024. During this sales tax exemption period, tax is not due on the retail sales of impact-resistant doors, impact-resistant garage doors, and impact-resistant windows for commercial or noncommercial use.
2022 Back-to-School Sales Tax Holiday – July 25, 2022, Through August 7, 2022
May 6, 2022
During the sales tax holiday period, tax is not due on the retail sale of:
- Clothing, footwear, and certain accessories with a sales price of $100 or less per item*
- Certain school supplies with a sales price of $50 or less per item,
- Learning aids and jigsaw puzzles with a sales price of $30 or less*
- Personal computers and certain computer-related accessories with a sales price of $1,500 or less, when purchased for noncommercial home or personal use
- Read the full TIP here.
2022 Sales Tax Holiday for Tools Commonly Used by Skilled Trade Workers – September 3, 2022, Through September 9, 2022
May 6, 2022
Florida’s 2022 ‘Tool Time’ Sales Tax Holiday begins on Saturday, September 3, 2022, and ends on Friday, September 9, 2022. During this sales tax holiday period, tax is not due on the retail sale of eligible items related to tools commonly used by skilled trade workers.
Madison County Increases Its Tourist Development Tax Rate From 3% to 5%
Jan. 5, 2022
The Madison County Board of County Commissioners adopted Ordinance No. 2021-246 increasing the tourist development tax rate from 3% to 5% on transient rental transactions occurring in Madison County.
Severance Tax
Gas and Sulfur Production Tax Rates for 2022-2023
May 10, 2022
On July 1 of each year, the tax rates for production of gas and sulfur are adjusted as provided by law. The adjusted rates must be used when completing the Declaration of Estimated Gas and Sulfur Production Tax (Form DR-144ES) beginning with the July 2022 estimated payment. Form DR-144ES will be mailed to all active accounts during the last week of July.
Solid Mineral Tax Rates for 2022
March 21, 2022
Phosphate rock producers are subject to tax as provided by law. Use the following rate when completing the Declaration/Installment Payment of Estimated Solid Mineral Severance Tax (Form DR-142ES).
Contribute
The Florida CPA/PAC supports the politicians who stand up for CPAs. We back the candidates and incumbents who will ensure CPAs and their clients are included in the legislative process. It is your voluntary contributions that help protect the CPA license.
Please note: Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others.