Sales Tax Exemption Bill FAQ

After many years of educating the legislature and the Department of Revenue (DOR), we were finally able to craft a sales tax exemption for private investigators.  Due to the large fiscal impact of including all PI services, we had to limit the exemption to a firm with 3 or less employees with a TAXABLE income of $150,000 or less.  

When does it take effect?
July 1, 2023

How did the bill pass when it is showing as having gone nowhere this Session?
FALI had two stand-alone bills, SB116 in the Senate and HB205 in the House. After successfully being voted out of various committees,UNANIMOUSLY, each of the bills was moved into their respective chambers overall tax package and was passed as part of Florida’s massive tax relief bill.

We are so grateful for our sponsors, Rep Peggy Gossett Seidman, her aide, Andres, Sen Ana Maria Rodriguez, her aide, Luke, and Sen Ingoglia that chaired the tax package on Senate side and Rep Bobby Payne, chair on House side.  

Why only 3 employees? Why only $150,000? 
When DOR did the fiscal analysis, they looked at national impacts and found that the national average for income for private investigators was $50,000 per employee. Then they wanted to limit to 3 x $50,000, or $150,000.  This kept the fiscal impact under the $1.6 million impact in order for us to get approved to be part of the tax package. If it were higher, we would not have been included.  

We understand that from a policy perspective no private investigators should be paying sales taxes.  However, we are taking the proverbial baby steps.  We appreciate your patience as we start the implementation.  We will see how this goes for a couple of years then go back to the legislature for a broader tax relief. Remember, it took us over 30 years to get this far.

What’s next?