FL – Guidance provided on temporary suspension of hillsborough county discretionary sales surtaxes

Beginning January 1, 2025, dealers should temporarily stop collecting the following Florida discretionary sales surtaxes:

• the Hillsborough County 0.5% indigent care surtax; and

• the Hillsborough County 0.5% local government infrastructure surtax.

However, dealers should continue to collect the 6% state sales tax and Hillsborough County 0.5% school capital outlay discretionary sales surtax for a combined tax rate of 6.5% for Hillsborough County. The Florida Department of Revenue will notify dealers when to begin collecting all Hillsborough County discretionary sales surtaxes again.

Reason for the Temporary Suspension of the Hillsborough County Surtaxes

In 2024, legislation provided instructions applicable to counties and to the department regarding when a discretionary sales surtax is adjudged to be unconstitutional. Those instructions include the temporary suspension of surtaxes, other than the school capital outlay surtax. In March 2021, the Florida Supreme Court ruled that the 1% Hillsborough County transportation discretionary sales surtax that was adopted in November 2018, was unconstitutional.

End of Temporary Suspension

It is unknown exactly when the suspension of the surtaxes will end but that determination is based on several factors and is to be determined. The department will issue another Tax Information Publication to notify affected dealers when to resume collecting the Hillsborough County 0.5% indigent care surtax and the Hillsborough County 0.5% local government infrastructure surtax. Tax Information Publication, No. 24A01-15, Florida Department of Revenue, November 19, 2024