2015 Florida
Legislative
Session
Wrap-Up
May 2015
Dear Fellow Taxpayer,
Each spring, the elected members of the Florida Legislature return to Tallahassee
to perform their roles as the representatives of the people of the Sunshine State.
Surrounded by interest groups both large and small, regular citizens and high-powered
lobbyists, our senators and representatives propose and debate new laws and attempt to
meet the needs of their constituents.
The 2015 Regular Session will be remembered as a unique one, with an unusual
ending that has not been seen in Florida in decades. On top of the progress of many
bills coming to an abrupt end, the Legislature failed to pass its only required piece of
legislation: a budget.
During Session, Florida TaxWatch provides on our website the public a weekly recap of
bills related to the issues that we are following, including economic development, health
care, criminal and juvenile justice, and education policies and programs.
This publication is a final look at the legislation followed by TaxWatch this Session, but
does not address the budget, which is scheduled to be completed by the Legislature in
June.
For more information on any research topic highlighted in this publication, please visit
http://www.floridataxwatch.org.
Sincerely,
Dominic M. Calabro
President & CEO
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Introduction
The 2015 Legislative Session was certainly not a
normal one. The session effectively ended three
days early when the House unexpectedly declared
“sine die” and went home, leaving a lot of work
undone and creating more acrimony among
lawmakers. Senate Democrats even asked the
Supreme Court to compel the House to return,
claiming the House’s unilateral adjournment
violated the Florida Constitution, with which
the Court ultimately agreed on principle, but
acknowledged that there was little that could be
done about it, as Session was set to end on the day
of its ruling regardless.
It was already apparent that the one job the
Legislature is required to do, the budget, was not
going to get done on time and a special session
would be needed. The main reasons for the budget
stalemate, Medicaid expansion and federal funding
of the Low-Income Pool to reimburse hospitals for
indigent care, seemed no closer to a compromise. It
was expected lawmakers would finish most of the
policy work, but most of the major issues remain
unresolved, including many priorities of the two
chambers’ leadership.
Prison reform, a statewide water policy, the
implementation of Amendment 1, and more
opportunities for persons with disabilities are just a
few of the issues on which some kind of resolution
was expected. Omnibus legislation (or “trains”) in
areas such as education, health and human services
and economic development also withered on the
vine, killing many separate issues.

A final tax cut package was also not passed.
While taxes will certainly be part of the budget
negotiations in special session, tax cuts are no
longer a sure thing this year.
The Legislature did manage to pass 231 bills (the
fewest since at least 2000). A number of bills
addressing Florida TaxWatch recommendations
were considered and some were passed, including
bills advancing justice reform, a first step in local
pension reform and several measures relating to
cost savings, and accountability recommendations.
In addition, if there is ultimately an agreement on a
tax cut package, a reduction in the communications
services tax, a Florida TaxWatch priority,
will likely be part of it. There were also some
disappointments, as state pension reform and the
collection of sales taxes on remote sales were again
not addressed. Other Florida TaxWatch-supported
measures, including bills relating to flexibility
under the class size amendment, telehealth, medical
tourism, justice reform, and enterprise zones
advanced but ultimately did not pass.
The Legislature will return to Tallahassee on June 1
and leaders expect to finish their work by June 20,
just 10 days before the start of the new fiscal year.
The official proclamation, which will enumerate the
issue that can be considered, has yet to be released.
The special session will likely be mostly limited
to the budget and the budget implementing and
conforming bills, but more issues could be added.
Other unresolved issues that have a bearing on the
budget may find their way into conforming bills.
Past legislatures have shown that the definition of
“conforming” may be broadly construed.
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Informal, behind-the-scenes negotiations will be
taking place over the next couple of weeks, as at
least a basic framework needs to be agreed upon
prior to the start of the special session. Smooth
sailing is not assured. The Senate wants to include
a debate on health care expansion in the session,
the House wants to exclude it, and neither side has
a shown any softening of its position.
The following is a summary of the final results
for legislation of interest to Florida TaxWatch
and its Centers for Educational Performance &
Accountability, Health & Aging, Smart Justice,
Competitive Florida and Government Efficiency.
Taxes
Very few tax bills passed this session. However,
while now in doubt, tax cuts are still alive. While
no tax package was approved by the Legislature,
tax cuts will certainly be part of the special session
budget negotiations.
Passed
Corporate Income Tax “Piggy-Back” - Florida
uses federal taxable income as the starting point
for determining corporate income tax liability. 
The Legislature passes an annual “piggyback”
bill to conform to any changes in the federal tax
code.  The federal Tax Increase Prevention Act
of 2014 extended two deductions: an increase in
the first-year expensing deduction from $25,000
to $500,000 and a 50 percent bonus depreciation
deduction.  Adopting these changes would have
cost Florida $180 million in FY 2015-16, with
revenue being recouped subsequent years. The
Legislature chose to “de-couple” Florida’s tax
code from these federal changes.  HB 7009
requires Florida taxpayers to add-back the federal
deductions and then subtract from income one-
seventh of these amounts in the next six years.  The
existing federal deductions are treated this way. 
Value Adjustment Board (VAB) Petitions –
Making a minor but worthwhile change, HB 489
allows a taxpayer to include multiple items of
substantially similar tangible personal property on
a single VAB petition and to pay a single petition
filing fee.  Substantial VAB reform was a victim of
the sudden House adjournment (see below).
Did Not Pass
Tax Cuts – The House passed a $689.2 million
tax cut package: HB 7141.  The Senate did not
produce a tax package, citing the budget stalemate;
however, the Senate did advance several tax
reduction bills.  The centerpiece of the House
proposal is a $470.5 million reduction in the
communications services tax, a long-time
Florida TaxWatch recommendation.  Other
provisions supported by Florida TaxWatch
research include a reduction in the sales tax
on commercial leases and an increase in the
research and development tax credit.  The
package also includes three different sales tax
holidays.  The rest is a patchwork of many different
tax cuts, some of them very small and many that
had not yet been part of any legislation.  A final
tax cut package will likely be part of the budget
conference negotiations. To review the provisions
of the House tax package (and any Senate action
on those provisions) see Appendix A.
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Sales Tax Exemption for Manufacturing
Machinery and Equipment - The 2013
Legislature passed a three-year exemption, set
to expire April 30, 2017.  SB 544 and HB 613
would have made the exemption permanent. This
is a long-standing recommendation of Florida
TaxWatch.  Recurring tax savings were expected to
be $142.5 million annually. This exemption is not
part of the House tax cut package.  Both bills died
in committee.
Collection of Sales Taxes on Remote Sales: Once
again, the Legislature failed to address the non-
collection of sales taxes on sales to Floridians by
out-of-state sellers, a situation that hurts Florida
retailers. Florida TaxWatch has been researching
this issue and recommending solutions for
more than 10 years.   Many bills have been filed
to help address this over the years.  This year, SB
310 would have brought Florida fully into the
Streamlined Sales and Use Tax Agreement, which
provides an opportunity for Florida to begin
collecting money from a compact of sellers that
voluntarily collect the tax.  HB 101 would have
expanded nexus over remote retailers, requiring
more retailers to collect tax on sales to Floridians. 
HB 1265 was a memorial urging Congress to
support the Marketplace Fairness Act.  None of
these bills were heard this session.
Corporate Income Tax Reduction - HB 49
and SB 138 would have increased the standard
corporate income tax exemption from $50,000
to $75,000, as was recommended by Governor
Scott.  The exemption was increased from
$5,000 to $25,000 in 2011 and to $50,000 in
2013.  This higher exemption would eliminate
corporate income taxes for 2,189 out of 9,934
taxpayers (22.0 percent), and save $18.7 million
annually.  This is not part of the House tax
package. SB 138 passed two committees and
died in Appropriations.  HB 49 was not heard in
committee.
Value Adjustment Boards (VAB) - HB 695
and SB 972 would have made several Florida
TaxWatch-supported changes to the VAB process
including: taxpayers must sign the petition, interest
on assessment and refunds would change from
12 percent to the prime rate and all VAB petitions
must be resolved by June 1 annually, unless the
county’s petitions increased by more than 10
percent.  HB 695 also would have changed the
composition of VABs from county commissioners,
school board members, and citizen members to all
citizen residents of the county appointed by their
legislative delegation.  This is an attempt to remove
the conflict of interest created by the current
composition which allows those who benefit from
higher assessments to make the decisions. Both
bills were passed by their respective chambers, but
because of differences, both bills died.
Aviation Fuel – HB 595 and SB 722 would have
reduced the tax on aviation fuel from 6.9 cents per
gallon to 5.4 cents per gallon, beginning July 1,
2018.  Also, the bills would eliminate a refund of all
aviation fuel taxes paid by transcontinental airlines
that created a certain number of jobs.  The idea is
that the two changes together would be revenue
neutral and that all airlines would benefit from
lower taxes. However, at its last committee stop,
SB 722 was amended to expand the current refund
to include at least one other airline, which would
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reduce revenues until the refund expired in three
years. HB 595 was approved by the full House.  
SB 722 died in the Appropriations Committee.
Law Enforcement Services Special Assessment
- SB 780 and HB 919 would have allowed the
governing body of a municipality to levy this
assessment to fund all or a portion of its costs of
providing law enforcement services if the property
tax millage is reduced by a similar amount.  SB 780
limited the assessment to $200 per parcel.  SB 780
died on second reading. HB 919 died in the Local
and Federal Affairs Committee.
The following bills passed one committee, but went no
further:
Save Our Homes (SOH) “Glitch” Bill - SJR1142
was a proposed constitutional amendment to
repeal the recapture provision which allows the
assessed value of homestead property to increase
by the SOH cap, even if the market value falls,
provided that the assessed value does not exceed
the just value. 
Direct Mail Advertising (DMA)- SB 858 would
have created a sales tax exemption for DMA goods
and services. 
Renewable Energy Source Devices - SJR 400
and HJR 865 proposed an amendment to the
state Constitution that would exempt the assessed
value of these devices from the tangible personal
property tax and allow the Legislature, by general
law, to prohibit consideration of the installation of
such device in determining the assessed value for
real property taxes. It would expire December 31,
2036. 
Property Tax Discount for Spouse of Disabled
Veterans - SJR 910 proposed an amendment
to the state Constitution to authorize the living
spouse of a deceased veteran, who upon death was
aged 65 or older, partially or permanently disabled
as a result of combat, and honorably discharged,
to keep the discount on ad valorem taxes currently
afforded the veteran. 
Low Income Elderly Homestead Exemption
- SJR 652 proposed an amendment to the state
Constitution that would revise the current
homestead tax exemption for low-income, elderly
people that have lived in their home for at least
25 years.  The current exemption is 100 percent
of the assessed value of a homestead with a just
value less than $250,000.  The amendment would
lock in the just value of the home to its value when
the exemption is originally applied for, meaning
the taxpayer would not lose the exemption due to
rising value. 
Food Desert Tax Credit - SB 610 provided an
income tax credit for grocery businesses that sell
nutrient-dense food items in areas designated as
food deserts.  The credit would be equal to 20
percent of its annual sales. 
For a summary of tax bills that were filed but not
heard this session see Appendix B.
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Economic
Development
Passed
Freight Mobility and Logistics - HB 257 defines
a freight logistics zone and allows a county, or
two or more contiguous counties, to designate
one. Projects within freight logistics zones,
which are consistent with the Department of
Transportation’s Freight Mobility and Trade Plan,
may be eligible for priority in state funding and
certain incentive programs.   Florida TaxWatch
research has highlighted the importance of
freight mobility to Florida’s economy.
Did Not Pass
Start-up and Second-stage Companies – HB
7067 would have created the “Startup Florida
Initiative,” which would encourage start-up and
second-stage company growth. Prior to the
session, Florida TaxWatch released a report
that highlighted the benefits of second-stage
companies, including the creation of 394,000 net
new jobs in Florida from 2009 to 2013. HB 7067
was approved by the full House but the Senate
economic development package (SB 1214) did not
include this provision.
Enterprise Zones Program - There was much
discussion of the Enterprise Zone program this
session, as the program is scheduled to sunset
in December 2015.  Florida TaxWatch testified
at several committee hearings, referencing
our recent analysis of the program.  The report
calls on the Legislature to revise and extend the
state’s Enterprise Zone program, designed to
revitalize and redevelop distressed, blighted areas
in Florida. However, the state’s enterprise zone
program will not be renewed.  Bills to extend
and revise the program (HB 903, SB 1556,
and SB 392) were not heard.  HB 7067 would
have replaced the state program with a Local
Enterprise Zone Program.  Late in the session,
language was added to SB 1214 that would have
permitted businesses located in enterprise zones
that have active economic development contracts
to continue to apply for enterprise zone state tax
programs and the child care facility property tax
exemption for three years.
Economic Development Programs – Both
chambers had omnibus economic development
bills that would have made numerous changes
to several programs.  SB 1214 and HB 7067
became “trains,” with more provisions added as
the session progressed.   SB 1214 standardized
the incentives application process, limited most
incentive agreements to 10 years and required
capital investment to remain in the state for the
duration of the contract.  It also set approval
requirements for different thresholds such as
allowing the Governor to approve projects
requiring less than $2 million without legislative
notice or approval.  The bill also makes additional
changes to the Quick Action Closing (QAC) Fund
and the Qualified Target Industry Business (QTI)
Tax Refund.   HB 7067 also makes numerous
changes including creating a new approval process
for performance-based cash incentive programs
and capping economic development incentive
programs at $60 million annually.  While the two
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chambers could not agree on this legislation, it is
likely some of these provisions will show up in a
budget conforming bill during the Special Session.
Seaports – HB 7039 and SB 1554, in addition
to several provisions related to the Florida
Department of Transportation, increased the
funding for the Florida Seaport and Economic
Development (FSTED) Program from $15 million
to $25 million per year. HB 7039 passed the full
House.  SB 1554 died in committee. This funding
may be addressed in Special Session.
Entertainment Industry Financial Incentive
Program – This program, which tries to bring
film and television productions to the state by
offering sales and corporate income tax credits, has
received a lot of attention this session.  A report
by the Office of Economic and Demographic
Research, which reviewed the return on
investment for many of the state’s economic
development programs, said the entertainment
program is not recouping the state’s investment
(in terms of produced state revenue).  SB 1214
and HB 451 would have made numerous changes
to the program.  Florida TaxWatch was asked by
the sponsor to review HB 451 and we found it
makes significant improvements to the current
program, including changing from a first-come
first-served process to one that prioritizes
based on expected economic return.  Both
bills transferred and renamed the Office of Film
and Entertainment under the Department of
Economic Opportunity as the Division of Film
and Entertainment under Enterprise Florida. The
Senate bill reduced the size of the Florida Film and
Entertainment Advisory Council and the House
bill eliminated the Council.  SB 1214 also created
the Entertainment Action Fund Program to
respond to extraordinary opportunities. A similar
fund was removed from the House bill.  SB 1214
set a sunset date of July 1, 2021 and July 1, 2025
for the action fund.   Under HB 451, the program
would still expire July 1, 2016.  Both bills died on
second reading. 
Qualified Television Revolving Loan Fund - HB
237 and SB 196 would have created a qualified
television revolving loan fund - an “evergreen”
fund privately managed under state oversight,
which offers loans (term limited to 36 months) for
qualified television content production throughout
the state. The program would use state money
and private funds raised by a third-party loan
administrator. Neither the bill nor the current
House budget contain an appropriation for the
fund.  HB 237 died on second reading. SB 196 was
not heard in committee.
These bills, containing potentially valuable concepts,
did not get a hearing:
Freight Mobility and Trade - HB 331 and SB 958
would have directed a portion of motor vehicle
fees, such as title fees, to be set aside for specified
freight mobility and trade projects.
Incentives for Small Technology Companies
– SB 1090 would have authorized the provision
of loans to small technology companies through
the Microfinance Guarantee Program.  The bill
appropriated $50 million for these loans.
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New Small Business Tax Credit – SB 128 and
HB 517 would have created a corporate income
tax credit for new small businesses.  If qualified,
the business would receive a $1,500 credit for
each employee, up to a maximum total credit of
$21,000.
Community Creative Grant Program - SB
1030 would have created this alternative to the
expiring Enterprise Zone program.  The program
was a competitive process through which cities
and counties could apply for grants to fund local
economic development projects. 
Education
Passed
Testing, Student Assessments & Teacher
Evaluations – HB 7069 will reduce testing time in
Florida schools, capping the time students spend
on state and local tests at 5 percent of their school
hours, or up to 45 hours.  The legislation also
reduces the reliance on test results in evaluating
teacher performance from 50 percent to 33 percent
of an evaluation. The bill eliminates the 11th-grade
language arts test (ELA) and the Postsecondary
Education Reading Test (PERT).  It eliminates
the requirement that a school district administer
a local end-of-course assessment for each course
that is not assessed by a statewide, standardized
assessment.  It codifies the rollout schedule for
statewide, standardized computer-based testing
and paper testing options through the 2017-2018
school year and requires independent verification
of validity of statewide, standardized assessments
before the results can be used to determine third
grade retention or high school graduation.  The bill
has been signed into law by the Governor.
Did Not Pass
Class Size Requirements - SB 818 and HB 665
would have revised the method for calculating
the penalty for failure to comply with the class
size requirements by performing the calculation
at the school average instead of at the classroom
level.  Florida TaxWatch released a report
showing that adjusting the way class sizes are
calculated will result in significant savings to
Florida taxpayers, which can then be reinvested
in measures that have been proven to improve
student achievement.  Florida’s class size limits
have cost taxpayers more than $30 billion since
voters approved them in a 2002 constitutional
amendment. The report encourages the Legislature
to adjust Florida’s class size calculation to a school
wide average. Applying the school level average
calculation across all of Florida’s public schools
would allow school districts to comply with the
class size reduction mandate, while reinvesting the
savings into measures to improve teacher quality
and student achievement. HB 665 passed the full
House and even though it was identical, SB 818
died on second reading.
Charter Schools/School Choice – HB 7037
aimed to increase charter school accountability
and increase student access.  It also changes some
funding provisions.  It required charter schools
to begin submitting monthly financial statements
upon approval of the charter contract, and clarifies
that charter schools that earn two consecutive
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grades of “F” are automatically terminated. 
It removed the limit on replication of high-
performing charter schools if the school is created
to serve high-need areas.  The bill also created the
Florida Institute for Charter School Innovation
at Florida State University to provide technical
assistance, conduct research on policy and practice
and provide opportunities for aspiring teachers to
experience teaching in charter schools.  The bill
earmarked $1 million annually for the institute. 
HB 357 established the Principal Autonomy
Pilot Program Initiative (PAPPI) to provide
the principals of schools in participating school
districts with increased autonomy and authority
regarding allocation of resources and staffing,
similar to charter schools.  SB 1552 and HB 1145
expanded school choice by allowing a student to
attend an out of district school, provided it has
capacity and the parents provide transportation. 
The bills also included the PAPPI program and
SB 1552 included the charter school institute
provisions.  All the House bills were approved by
the House. SB 1552 died on the Special Order
Calendar.
Digital Classrooms – SB 1264 directed the
Agency for State Technology (AST) to establish
information technology architecture standards
for purposes of implementing the state’s new
digital classroom funding allocation.  AST was
required to collaborate with the Departments of
Education and Management Services to identify
state procurement options and shared services
available through the State Data Center to facilitate
implementation digital classrooms.  AST must also
do an annual assessment and provide planning
assistance to address issues identified by the
assessment.  The bill appropriated $10 million to
the Agency for State Technology.   This language
was also added to SB 948, the Senate education
“train.”  Both bills made it to the floor but did not
get to a vote.
Reducing Educational Facility Costs - HB 181
and SB 1262 aimed to provide cost savings to
school districts by allowing them to implement
exceptions to the State Requirements for
Educational Facilities (the public education
building code).  These exceptions relate to the
use of wood studs in interior nonload-bearing
walls, paved walkways, roadways, driveways, and
parking areas, covered walkways for relocatable
buildings, and site lighting.  A school board must
hold a workshop and then the resolution must pass
by a supermajority vote at a public meeting.  The
school board must conduct a cost-benefit analysis
prepared according to a professionally accepted
methodology that describes how each exception
achieves cost savings, improves the efficient
use of school district resources, and impacts
the life-cycle costs and life span for the facility.
The cost-benefit analysis must also demonstrate
that implementation of the exception will not
compromise student safety or the quality of
student instruction.  This language was also added
to SB 948, the Senate education “train.”  All three
bills made it to the floor but did get to a vote.