Florida residents could see major changes in state tax policy next year under a new $1.3 billion tax package unveiled by House and Senate leaders on Friday. The proposal includes annual August sales-tax holidays for back-to-school items, the elimination of the 2% sales tax on commercial leases, and new exemptions for items like hurricane supplies, sunscreen, and outdoor gear.
The House and Senate are expected to vote on the tax plan early next week alongside the 2025-2026 state budget. If passed, the changes would significantly reduce revenue for state and local governments but provide modest savings to both individuals and businesses.
The most significant component of the tax package is the repeal of the 2% sales tax on commercial leases, which has long been a priority for business groups. That single change is projected to account for nearly $905 million of the overall cuts.
Some lawmakers defended the business-oriented relief, arguing that benefits to corporations also help working families. “The notion that businesses don’t employ people that are part of families is nonsense,” said House Budget Chairman Lawrence McClure, R-Dover. “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.”
Governor Ron DeSantis had previously pushed for a property tax rebate for homeowners, hoping it could pave the way for a constitutional amendment to reduce or eliminate property taxes. However, that rebate was not included in Friday’s proposal. Instead, lawmakers allocated $1 million to study possible changes to the property tax system.
The second-largest cut, totaling $167.7 million, comes from a newly established back-to-school sales-tax holiday that will now occur automatically each August, rather than requiring annual legislative approval. Florida has offered similar tax holidays in previous years, but this move would make the event permanent.
Other sales-tax exemptions included in the package cover hurricane preparedness supplies such as portable generators and batteries, as well as sunscreen, insect repellant, fire extinguishers, smoke detectors, life jackets, bicycle helmets, and admission to state parks. NASCAR Championship race tickets will also be exempt from sales taxes.
Additionally, a special tax holiday for hunting, fishing, and camping gear will run from Sept. 8 through Dec. 31. The package also includes the repeal of an aviation fuel tax and a 2% reduction in taxes on pari-mutuel cardrooms.
Once the budget is passed, Governor DeSantis will have until July 1 to sign it and issue any vetoes. The new fiscal year begins on that date.
