Actions Florida Should Take to Help Taxpayers Impacted by Hurricanes Helene and Milton

Florida is reeling from an unprecedented string of Hurricanes. This month's Category 3 (once a Category 5) Hurricane Milton followed Category 4 Hurricane Helene by less than two weeks. August brought Hurricane Debby and there was flash flooding in South Florida in June. People are still recovering from storms in 2023 and 2022. Every Florida county was included in at least one of the numerous state of emergency declarations issued by the Governor, most were included in multiple emergencies.

The Governor, Legislature and many state and local agencies have been responding, first with search and rescue and providing shelter and other necessities to those displaced by the storms. Now comes rebuilding peoples' lives. Many homes, businesses, and other property were destroyed or severely damaged. Rebuilding residential and commercial property, agriculture, infrastructure, and our natural resources will be a multi-year endeavor. These are the critical needs and Florida TaxWatch is confident that our governments and the citizens of our state will once again rise to the challenge.

In addition, Florida taxpayers should be protected from suffering long-term economic damage as the state moves forward with recovery efforts. As we did after the COVID-19 pandemic and Hurricane Ian, Florida TaxWatch has developed recommendations aimed at ensuring that administering Florida's tax system does not unnecessarily add to taxpayers' financial struggles and hinder the state's economic recovery. These recommendations can help lessen the taxpayers' burden of complying with tax laws, protect them penalties, interest, and over assessments when failure to comply is due to the storms, and help reduce their monetary tax burden.

Our elected officials have been very receptive to Florida TaxWatch's past post-disaster tax recommendations and a number have been implemented, both temporarily and permanently.

As has become standard in the wake of a hurricane, Florida has already taken steps to relieve the tax compliance burden for those impacted by Hurricane Helene. Governor DeSantis and the Executive Director of the Florida Department of Revenue (DOR) have implemented the following actions (delaying deadlines is a past Florida TaxWatch recommendation):

Extending Tax Deadlines

For taxpayers in counties impacted by Hurricane Helene, deadlines for returns, reports, and payments have been postponed until November 22, 2024 for:

• Sales and Use Tax
• Local Discretionary Sales Surtax
• Reemployment Tax
• Communications Services Tax
• Motor Fuel Tax
• Gross Receipts Tax
• Insurance Premium Tax
• Documentary Stamp Tax (unrecorded)
• Rental Car Surcharge
• Tourist Development Tax
• Lead Acid Battery Fee
• Severance Tax
• Motor Vehicle Warranty Fee
• Prepaid Wireless Fee
• New Tire Fee

Corporate Income Tax

DOR will follow the tax return deadline extensions granted by the Internal Revenue Service for taxpayers in counties impacted by Hurricanes Debby, Helene, and Milton and the severe storms and tornadoes in May 2024. Florida corporate income/franchise tax returns with original due dates or extended due dates on or before September 23, 2024, and before May 16, 2025, will now have a due date of May 16, 2025. This includes affected taxpayers that already had payment and return due dates postponed due to earlier storms.

Taxing Authority Millage and Budget Hearings

The in-person quorum requirement was suspended, and hearings are allowed to be held by telephonic or video conferencing.

For more information on these extensions, and to keep up with additional actions, visit FloridaRevenue.com.

Florida TaxWatch Post-Hurricane Tax Recommendations

These taxpayer protections include past Florida TaxWatch recommendations that have not been implemented or are not currently in effect.

1. The provisions extending filing and payment deadlines that are already in place for counties impacted by Hurricane Helene (see above) should be expanded to include counties impacted by Hurricane Milton, and further extension of the deadlines should be considered. We are confident that the Governor and DOR are planning to include Hurricane Milton.
2. Extend the date for taxpayers take advantage of the tax discounts they would normally receive for paying property taxes and special assessments in November (4 percent), December (3 percent), January (2 percent), and February (1 percent).
3. Postpone the deadlines for property tax installment payments.
4. Postpone tax notices and waive penalties or interest for late tax filings in affected areas.
5. For the most impacted counties, postpone the April 1, 2025 date that property taxes become delinquent.
6. Protect individual and business taxpayers from the risks for notices that they will likely not receive because their home or business address is not accessible anymore.
7. Issue no new audits in severely impacted areas, extend the statute of limitations and postpone existing audits that have not reached the assessment (final) stage.
8. Create procedures for fairly estimating taxes which can't be calculated because records have been destroyed by the storm, moving away from the current method which significantly overestimates activity if no records are available.
9. Initiate procedures to offer payment plan assistance for late taxes, rather than resorting to the standard collection methods, like liens, levies, or bank freezes.
10. The 2022 Legislature passed a law that provides property tax refunds for residential property rendered uninhabitable as a result of a catastrophic event for at least 30 days. A similar law should be enacted for commercial property. The Legislature should consider reimbursing, or sharing the cost with, local governments for reduced property tax revenues. The 2023 Legislature appropriated $35 million to reimburse counties that were required to refund property taxes to taxpayers whose residential property was rendered uninhabitable by Hurricanes Ian or Nicole.
11. Provide tangible personal property relief for businesses, such as refunds for such property that was destroyed by the storms.
12. Property taxes have been skyrocketing. Statewide tax levies increased 27.9 percent from FY2021-22 to FY2023-24 and county taxable value increased another 10.2 percent this year. Most local governments have adopted their new millage rate for this year. Florida TaxWatch urges local governments and to roll-back their next adopted millage rates to at least partially offset rapidly growing property values.
13. Persuade Congress to pass a Disaster Tax Relief Act that includes provisions from past packages, including elements such as an Employee Retention Credit, an enhanced casualty loss deduction, and other relief provisions.

Florida TaxWatch welcomes other ideas from Florida taxpayers. Send suggestions via email to [email protected].