ORLANDO, Fla. – After months of contentious debate, some in public, Florida lawmakers passed a budget and tax package Monday that included $1.3 billion in state and local tax cuts, but nothing as radical as leaders were proposing.
The Florida Legislature passed HB 7031, a mix of sales tax relief for consumers, along with the repeal of some business taxes, the creation of some new tax credit programs, and some new rules meant to allow local governments to make tax changes.
[WATCH video below to learn about the new Florida budget]
Republican leaders spent much of the session at odds over what sort of tax cuts to provide. Gov. DeSantis wanted a larger effort to cut property taxes, like a one-year rebate for homeowners. House Speaker Daniel Perez wanted to permanently reduce the state sales tax.
The debate was so heated that DeSantis criticized Perez during public events and appeared to take sides with Senate President Ben Albritton, who said cutting the state sales tax would not provide much relief. It also led to an extended session that ended over a month later than scheduled.
In the end, the package lawmakers passed will not lead to large savings, but they promise individual Floridians will see a benefit.
“Will you save a ton of money because of what we do? Probably not,” said Senate Appropriations Chairman Ed Hooper, R-Trinity on Friday. “But you will save some.”
Whether the tax cut package will become reality now falls to Gov. Ron DeSantis, who can either sign or veto the package by July 1.
The deepest tax cut
The biggest tax cut will be for businesses. The bill will repeal the business rent tax, a 2% sales tax on commercial leases, starting on Oct. 1, 2025. The repeal amounts to $904.8 million of the $1.3 billion in cuts.
Lawmakers say the cuts will lead to more jobs and spending by businesses.
“If those tax breaks give relief to corporations to allow them to grow and prosper in Florida, that is good for the employees, the Floridians that work for those companies,” said House Budget Chairman Lawrence McClure, R-Dover.
Sales tax holiday changes
The second largest tax cut will come from the back-to-school sales tax holiday, which will take place during the entire month of August. That is projected to cost some $167.7 million.
The Florida Legislature passes a back-to-school sales tax holiday every year. Sometimes it takes place over a couple of weeks, sometimes a month, sometimes they hold more than one holiday.
From now on, however, the sales tax holiday will have a permanent location on the calendar: from August 1-31, every year.
Clothing, wallets and bags priced at $100 or less will be exempt from sales taxes.
So will school supplies costing $50 or less, learning aids or puzzles that are $30 or less, and personal computers or accessories costing $1,500 or less.
Lawmakers also approved a sales tax holiday for hunting, fishing and camping items from Sept. 8, 2025 to Dec. 31, 2025.
Lawmakers did not approve another annual sales tax holiday on hurricane supplies this year.
Permanent sales tax exemptions
[WATCH video to see what supplies to pick up for hurricane season now]
Instead, sales taxes will now be exempt year-round on the following items:
- Batteries: AA-cell, AAA-cell, C-cell, D-cell, 6-volt and 9-volt
- Fire extinguishers, smoke detectors, smoke alarms, carbon monoxide detectors
- Some portable generators
- Waterproof tarps or flexible waterproof sheeting that is 1,000 square feet in size or less
- Ground anchor systems or tie-down kits
- Gas or diesel fuel cans that are five gallons or less in size
Sales taxes will remain on other items that would appear on hurricane supplies sales tax holiday lists, such as weather radios, flashlights and lanterns, and pet supplies.
Lawmakers also permanently removed sales taxes on all bicycle helmets, sunscreen, insect repellent, and life jackets.
Admission to state parks will also be sales tax-exempt.
Lawmakers also permanently repealed sales taxes on gold, silver or platinum bullion.
For NASCAR fans, championship race tickets have also been exempt from a sales tax on admissions. Admissions were already exempt from taxes for other NASCAR races like the Daytona 500, as well as other sporting events around the state.
Starting Jan. 1, 2026, aviation fuel will also be tax-free.
Other tax changes
The tax package also:
- Exempts charitable trusts from corporate taxes
- Creates several new tax exemptions for affordable housing, which will apply to the 2026 tax rolls
- Expands an exemption on education property to include some gold seal-certified childcare facilities
- Provides exemptions to agricultural businesses affected by citrus greening
- Creates a new Home Away from Home tax credit to Florida businesses contributing to charities that house families of critically ill children while they travel for care
- Creates a new Rural Communities Investment Program to provide millions in annual tax credits for investing in a rural fund.
The package originally included measures that would have opened up local tourism development tax dollars for use on public facilities. However, that measure was dropped from the package at the last minute.
Instead, fiscally-restrained coastal counties will be able to use TDT revenues for public facilities, and all coastal counties will now be able to use TDT revenue for beach lifeguards.
Finally, the bill provides $1 million to help conduct a study of the state’s property tax system and make recommendations for changes to the legislature by Nov. 1, 2025.