By Rivero, Gordimer & Company
Starting January 1, 2025, businesses and residents in Hillsborough County will see a decrease in the total sales tax rate, dropping from 7.5% to 6.5%. This temporary suspension of certain discretionary sales surtaxes highlights the importance of staying informed about changes in tax regulations—a critical aspect of sound financial accounting and tax preparation for both individuals and businesses.
What’s Changing in the Hillsborough County Sales Tax?
The Florida Department of Revenue announced that two discretionary surtaxes will be temporarily suspended:
- The 0.5% indigent care surtax
- The 0.5% local government infrastructure surtax
As a result, only the 6% state sales tax and the 0.5% school capital outlay surtax will apply, reducing Hillsborough County’s overall tax rate to 6.5%. This change affects all dealers, including those located outside Hillsborough County and remote sellers.
For more information, visit the Florida Department of Revenue’s official website.
Why Are These Surtaxes Suspended?
The suspension follows legislative actions after the Florida Supreme Court ruled the 1% Hillsborough County transportation discretionary sales surtax unconstitutional in March 2021. This ruling led to a redistribution of funds, including a temporary suspension of these surtaxes, as outlined in section 212.054(9), Florida Statutes (F.S.).
The funds from the transportation surtax will be used for:
- Offsetting the temporary suspension of surtaxes.
- Resurfacing county roads and city streets in Hillsborough County.
- Administering refunds through a court-appointed settlement administrator. Learn more at FLTaxRefund.com.
How Does This Impact Businesses?
For business owners, including small businesses, understanding the implications of this sales tax change is crucial for accurate financial accounting, bookkeeping, and income statements. Here’s what you need to know:
- Adjust Your Sales Tax Collection: From January 1, 2025, collect only the reduced 6.5% rate.
- Avoid Erroneous Collection: If you accidentally collect the suspended surtaxes, you must remit the funds to the Department of Revenue and issue refunds to customers as applicable.
- Remote Sellers: Businesses outside Hillsborough County, including remote sellers, must follow these changes.
Preparing for Future Changes
The duration of this suspension is uncertain, and businesses should remain vigilant for updates from the Department of Revenue. Dealers will be notified when to resume collecting the surtaxes. Stay prepared by consulting with a CPA to ensure compliance and avoid penalties.
Conclusion
Navigating tax changes like Hillsborough County’s sales tax reduction requires tax preparation, financial statements, and bookkeeping expertise. At Rivero, Gordimer & Company, we specialize in helping businesses stay compliant with ever-changing tax regulations.
Our team of experienced CPAs is here to support your small business with tailored guidance, from managing payroll services to preparing accurate balance sheets and income statements. Contact us today for professional tax help and ensure your business is prepared for this and other regulatory changes.
The post Hillsborough County Sales Tax to Decrease to 6.5% on January 1, 2025 first appeared on Rivero Gordimer | CPA | Accounting | Payroll | Tampa Florida.