In a unanimous decision, the Florida House of Representatives approved House Bill 7031 on Wednesday, aiming to reduce the Florida sales tax rate from 6% to 5.25%. The bill, which brings even more substantial sales tax cuts in certain areas, passed with a 112-0 vote.
House Speaker Pro Tempore Wyman Duggan, R-Jacksonville, who presented the bill on the House floor, emphasized its broad impact: “This bill provides permanent sales tax relief to every Florida citizen.” He further clarified, “This tax relief will be permanent. To increase any tax or fee requires a supermajority vote, so the intent and effect is to make this sales tax relief permanent. This will not be a tax holiday.”
Beyond the general sales tax reduction, the proposed legislation seeks to:
- Lower the commercial rent tax from 2% to 1.25%.
- Reduce the sales tax on non-residential electricity from 4.35% to 3.6%.
- Cut the sales tax on new mobile homes from 3% to 2%.
- Decrease the levy on coin-operated amusement machines from 4% to 3.25%.
During discussions, Representative Angela Nixon, D-Jacksonville, inquired about the bill’s impact on local sales tax levies. Duggan responded that the legislation would not affect local sales tax rates imposed by municipalities and counties.
If enacted, the bill is set to take effect on July 1. However, its future remains uncertain as Governor Ron DeSantis has expressed a preference for property tax relief over sales tax reductions. The governor has proposed a one-time $1,000 property tax rebate for approximately 5.1 million homeowners and is advocating for a 2026 ballot measure to provide permanent property tax relief. DeSantis has voiced concerns that the House’s sales tax reduction plan would primarily benefit tourists and non-residents.
The Senate’s stance also presents a potential hurdle for the bill. Senate President Ben Albritton, R-Wauchula, has called for a cautious approach, suggesting that any significant tax cut package should be predominantly nonrecurring to maintain budget flexibility in case of economic downturns. In a letter to Senate members, Albritton stated, “At this point, I believe it is prudent that a final tax cut package of this size be predominantly nonrecurring, while permanent tax cuts are explored during the interim.”
The bill still has a way to go before becoming law, and is competing with several other tax reduction proposals. Still, the Florida legislature appears to be united in bringing much needed tax relief in one form or another to the State.
