For the first time in 16 years, the state wouldn’t offer sales-tax “holidays” under a House proposal that calls for an overall cut in sales taxes.
The House Ways & Means Committee on Wednesday unanimously approved a $5.43 billion package dominated by House Speaker Daniel Perez’ proposal to lower the state’s sales-tax rate from 6 percent to 5.25 percent.
The package, which will be a key issue in upcoming budget negotiations between the House and Senate, also would reduce a commercial-lease tax from 2 percent to 1.25 percent, along with sales taxes on mobile home sales, electricity and games such as pinball machines.
Gov. Ron DeSantis is pushing to reduce property taxes instead of sales taxes. But Ways & Means Chairman Wyman Duggan, R-Jacksonville, said the House proposal (PCB WMC 25-01) would have the broadest effect.
“Homestead property-tax relief targets or benefits only Floridians at this point, but not all Floridians,” Duggan said. “Sales tax relief benefits all Floridians, plus some other people.”
House leaders say their proposal would cut taxes by about $5 billion, which would be offset by potential reductions in state spending. But DeSantis wants to offer a one-time property tax break for homesteaded properties and ask voters in 2026 to pass a constitutional amendment to reduce or eliminate property taxes.
The Senate has not gotten behind either proposal. In a memo issued Monday, Senate President Ben Albritton, R-Wauchula, said it would be prudent for any tax package this year to make mostly one-time cuts, with more time spent studying potential longer-term cuts.
“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 the Senate will negotiate a budget and a tax package for the 2025-2026 fiscal year, which will start July
As part of a $115.6 billion budget proposal he released in February, DeSantis called for a series of sales-tax holidays. He proposed holding holiday periods to allow shoppers to avoid paying sales taxes on school supplies and clothes in August; on disaster supplies at the start and the peak of the hurricane season; and on recreational purchases throughout July. DeSantis also proposed a “Second Amendment Summer” sales-tax holiday between Memorial Day and the Fourth of July that would temporarily remove sales taxes on ammunition, firearms and related items.
First created in 1998, back-to-school holidays have been held annually since 2010. They were not held in 2008 and 2009 as the state struggled with budget problems during the recession.
Florida has offered holidays on hurricane supplies each year since 2014, after first offering the discount period in 2006.
While tax holidays have been popular with shoppers and retailers, Perez hasn’t embraced them. When the legislative session opened on March 4, he directed House budget leaders to “dive into the budget and find real savings in recurring revenue.”
“We spend every new dime of recurring revenue while congratulating ourselves for giving easy-to-fund non-recurring sales tax holidays,” Perez said at the time.
In announcing the sales-tax proposal last week, Perez said it “will not be a temporary measure; a stunt or a tax holiday.”
As the House pursues cutting the overall sales-tax rate, Rep. Anna Eskamani, D-Orlando, called the proposal “quite historic.”
“Florida has a very regressive tax structure, partially because we are so reliant on sales tax,” Eskamani said.
“For our Floridians that make less (money), they pay more of their income into taxation than those that make more,” Eskamani added. “And part of that is because we don’t tax income in our state, which is why folks love coming to our state.”
The House package would also cut the sales-tax rate on electricity from 4.35 percent to 3.6 percent, the rate on sales of new mobile homes from 3 percent to 2.25 percent, and the rate on coin-operated amusement machines, such as pinball machines, from 4 percent to 3.25 percent.
“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.
–Jim Turner, News Service of Florida
Joe D says
I’ll repeat my prior comment on cutting sales taxes….
“Remove the temptation to spend.”
Sure….sounds good, right? More money in Florida tax payers pockets, right?
Guess with $5 BILLION ( with a “B”), less in the Florida Budget each year, Lowes and Home Depot will start selling “Do it yourself” POT HOLE REPAIR KITS, and we’ll all take turns going out and clearing storm debris off route 95 and route 4 after storms (sign me up for 2nd and 4th Wednesdays from 10-2). I guess will have to have WEEKLY bake sales to keep the school lights on, since now they will have to install “pay as you go” electrical meters ( like some areas have in Europe), where you have to put money in your electric meter box, to keep the power on….or send in candles with your child’s lunch ( school lunches will be a thing of the past…no money for food or cafeteria staff) each week…IKEA has a good candle sale this month! ***that was all SARCASM FOLKS, if it went over your head***
Sure, there is ALWAYS some spending waste…and politicians want to get re-elected ( is our State Speaker jockeying for a Federal DOGE JOB) … “See how much I can cut…pick me, pick me!!!”
But THINK ABOUT IT!?! Those annoying TOURISTS spend lots of money, buying mouse ears, and wizard wands, and sun tan lotion ( I’m sure FlaglerLive or SOMEONE out there can tell us the ESTIMATED money brought into the state though TOURIST SALES TAXES PAID each year). So REALLY we are giving those tourists a vacation discount….
Everyone wants Public services: roads, schools, bridges, water treatment plants, clean safe FREE beaches. However, as seen locally, NO ONE wants to PAY for them (economics 101….you can’t spend money you don’t have)…something lawmakers ( on BOTH SIDES of the aisle) in Washington have failed to learn for DECADES.
LETS LIVE IN REALITY….unless we all want to become TRUELY self sufficient “homesteaders” ( the REAL KIND from 100 years ago, not the tax credit kind)…I’m probably one of the few around that still knows HOW to grow my own food, do basic carpentry with HAND TOOLS, filter rain water for drinking, and “prime” a well pump (my mother grew up on a farm outside of Gettysburg, Pa.).
As much as I would like to pay less at the store with reduced sales tax, I think people wouldn’t like what PUBLIC services would be lost with this proposed tax cut. Remember how well the Palm Coast’s tax cut worked out!?! They had to raise fees exponentially to make up for the loss in tax money. …..MICROSURFACING anyone?
Larry says
PALM COAST, FLAGLER BEACH, BUNNELL city gov and FLAGLER County government should have a much easier time voting to pass the proposed 1/2 cent Beach Renourishment tax, since sales taxes would still be lower for residents, even with the added 1/2 penny, if 3/4 percent gets cut from state sales tax. Timing is good for passing 1/2 cent beach renourishment tax.