
House Speaker Daniel Perez said Wednesday he wants to lower the state’s sales-tax rate, trimming revenue by almost $5 billion a year.
Perez, R-Miami, told House members he has directed Ways & Means Chairman Wyman Duggan, R-Jacksonville, to produce a bill next week that would lower the rate from 6 percent to 5.25 percent.
“This will not be a temporary measure; a stunt or a tax holiday. This will be a permanent, recurring tax reduction,” Perez said.
Since taking their powerful positions in November, Perez and Senate President Ben Albritton, R-Wauchula, have warned lawmakers about a need to slow spending. At least in part, that is because federal money that flooded into the state during the COVID-19 pandemic has dried up.
Perez said the sales-tax proposal is tied to efforts to reduce state agency spending.
“We cannot spend our way out of a spending problem. We must remove the temptation to spend,” Perez said.
House and Senate budget panels this week have released initial spending proposals for the 2025-2026 fiscal year, which will start July 1. The House and Senate ultimately will have to negotiate a final budget in the coming weeks.
Albritton spokesman Katie Betta said in an email Wednesday that the two leaders have shared views on the budget, including concerns about spending on recurring programs, and that the president looks forward to reviewing the House proposal.
“The Senate budget prioritizes broad-based tax relief, debt repayment and reserves, while reducing per-capita spending,” Betta said. “The president has tremendous respect for the speaker and looks forward to partnering with the House on a significant, broad-based tax relief package to make sure Florida families can keep more of the money they earn.”
Without a state income tax, Florida relies heavily on sales taxes to fund programs such as schools, health care and prisons. While the state has a 6 percent rate, many counties have higher rates through what is known as a “discretionary” sales tax.
Perez’s comments Wednesday came after Gov. Ron DeSantis and many lawmakers have called during this year’s legislative session for reducing — or possibly even eliminating — property taxes. Critics of such property-tax ideas have said they could force increasing sales taxes to make up the lost revenue.
In a budget proposal released Feb. 3, DeSantis called for $2.2 billion in tax cuts that mostly would come through the elimination over two years of a tax that businesses pay on commercial leases, a move long sought by business groups. He’s also called for a return of sales tax “holidays” on school supplies, recreational items, hurricane supplies, and for ammunition and firearms.
As part of budget negotiations, the House and Senate are expected to reach a deal on a tax-cut package.
Perez gave a brief overview Wednesday of the House budget proposal, which he said will be lower than the $116.5 billion budget in the current fiscal year and DeSantis’ proposed $115.6 billion budget for the 2025-2026 fiscal year.
“For the first time since the Great Recession, we will roll out a budget that actually spends less money than we did in the prior fiscal year,” Perez said. “Of course, the special interests will say the sky is falling and the world is ending. But it won’t, and it’s not. They have lost sight of the difference between our state’s needs and their wants.”
After Perez announced his sales-tax proposal, the House unanimously voted to override four of DeSantis’ budget vetoes from the current year’s spending plan. Those vetoes totaled $4.74 million. It was not immediately clear whether the Senate also will vote to override the vetoes.
The four vetoed items were $140,000 for the Florida Senior Veterans in Crisis Fund; $2.5 million for a Rockledge water-treatment project; $1 million for an automated staffing, time management and scheduling system; and $1.104 million for a sewer and water project in Baldwin.
Betta said Albritton is gathering input and “will make a final decision regarding taking up the additional veto overrides when the bill returns from the House.”
During a special session in February, the House and Senate overrode a DeSantis veto of $57 million for “legislative support services” — the first time the Legislature has overridden a DeSantis veto during his six years as governor.
After DeSantis vetoed the $57 million last year, the Legislature had to dip into reserves to avoid firing employees or shutting down operations.
–Jim Turner, News Service of Florida
Whos first? says
Which of you Liberal neighbors of mine wants to complain first?
Crickets???
Joe D says
“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 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 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 services would be lost with this proposed tax cut. Remember how well the Palm Coast’s tax cut worked out!?! MICROSURFACING anyone?
Dennis C Rathsam says
The Grand Ole Party taking care of Floridians everywhere!