Florida House Ditches Sales Tax Holidays For Broader Tax Cuts, Sparks Budget Battle

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Florida House Ditches Sales Tax Holidays For Broader Tax Cuts, Sparks Budget Battle

Governor Ron DeSantis
Governor Ron DeSantis

In a significant shift, the Florida House is proposing a $5.43 billion tax cut package that eliminates popular sales tax “holidays” in favor of a permanent reduction in the state’s sales tax rate.

This move, a departure from 16 years of tradition, has set the stage for a potentially contentious budget negotiation with the Senate and Governor Ron DeSantis.

The House Ways & Means Committee unanimously approved the package, spearheaded by House Speaker Daniel Perez, which would lower the state’s sales tax rate from 6 percent to 5.25 percent. The proposal also includes reductions in commercial lease taxes, mobile home sales taxes, electricity taxes, and taxes on coin-operated amusement machines.

READ: Florida Gov. DeSantis Rips Into Rep-Elect Randy Fine After Special Election Win

While Governor DeSantis has advocated for property tax breaks and sales tax holidays, the House is prioritizing a broader sales tax reduction. Ways & Means Chairman Wyman Duggan, R-Jacksonville, argued that the House plan would benefit all Floridians, not just homeowners.

“Homestead property tax relief targets or benefits only Floridians at this point, but not all Floridians. Sales tax relief benefits all Floridians, plus some other people,” said Duggan.

The elimination of sales tax holidays marks a notable change. DeSantis had proposed sales tax holidays for school supplies, hurricane supplies, recreational purchases, and even a “Second Amendment Summer” holiday for firearms and ammunition. However, House Speaker Perez has dismissed these as “stunts” and favored a permanent, recurring tax cut.

READ: Gov. DeSantis Proposes $5 Billion Property Tax Cut For Florida Homeowners

The Senate, however, has expressed caution regarding long-term tax cuts. Senate President Ben Albritton, R-Wauchula, issued a memo emphasizing the importance of focusing on one-time tax cuts this year and thoroughly studying potential long-term reductions.

“Cutting taxes now does little good if they have to be raised two years from now to address budget shortfalls,” Albritton wrote.

The House and Senate will now engage in budget negotiations to determine the final tax package for the 2025-2026 fiscal year, which begins July 1.

Rep. Anna Eskamani, D-Orlando, acknowledged the historic nature of the House proposal, highlighting Florida’s “regressive tax structure” due to its reliance on sales tax. She argued that the sales tax cut would provide much-needed relief to lower-income Floridians.

READ: Sen. Ashley Moody Introduces Bill To Boost Florida Orange Juice Production

“Floridians are struggling. I think this will make a difference in everyone’s pocketbook when they go to the store and purchase items,” Rep. Robin Bartleman, D-Weston, said in support of the House proposal.

The upcoming budget negotiations will determine whether Florida forgoes its traditional sales tax holidays in favor of a broader, permanent tax cut, and how the state will balance immediate relief with long-term fiscal stability.

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