Florida TaxWatch has been monitoring the latest tax relief proposals working their way through the 2025 Florida Legislature.
Property Taxes or Sales Tax?
The House Ways & Means Committee unanimously passed a proposed committee bill (now HB 7031) that would reduce the state sales tax by 0.75 percentage points, from 6.0 percent to 5.25 percent.
On the sales tax, TaxWatch points out that only a few items the state taxes at less than 6.0 percent—business rent (2.0 percent), electricity (4.35 percent), coin-operated amusement games (4.0 percent), and mobile homes (3.0 percent)—will also get a .75 percent rate reduction.
At its current proposal, the sales tax cut proposal would save taxpayers $5.4 billion this first year.
Governor Ron DeSantis wants the GOP-controlled Legislature to pass his proposal of $5 billion in property tax relief. His plan calls for more than five million Florida homestead property owners to receive rebates (using state funds) averaging just under $1,000 in November. The Governor still wants to pursue larger property tax cuts, including the potential elimination of the tax, which would require voters to approve a constitutional amendment.
Where does Governor DeSantis’ plan fall currently?
The Florida Senate has been largely silent on its tax cut plans, but President Albritton said that both the House and the governor’s proposals were worthy of consideration. However, rightly warning about creating future budget deficits, he said he favors non-recurring (one-time) cuts this session and then studying potential permanent cuts.
Business Rent Tax Cut Advances
Florida TaxWatch commends the House for including the business rent tax in the rate reductions in its sales tax relief plan. Eliminating this tax has been a top priority for years, and our research has helped to reduce this unique and anti-competitive tax from 6.0 percent down to its current 2.0 percent. Whatever tax relief package is passed this session, Florida TaxWatch strongly recommends that it includes the business rent tax. HB 7031 will be considered on the House floor next Wednesday.
Any conversation about tax relief is a good one. This level of both permanent and one-time tax relief is sustainable for the long term and leaves room in our balanced budget for the voters to consider meaningful property tax relief on the ballot. 🇺🇸🍊https://t.co/WvzdV5CNii pic.twitter.com/Rdwv50thJw
— Ben Albritton (@Sen_Albritton) April 9, 2025
