Florida's governor, Ron DeSantis, enacted a comprehensive tax reduction package amounting to $1.6 billion, providing both permanent and temporary tax relief to residents and businesses throughout the state. Among the significant changes is the elimination of the state's commercial lease tax, alongside sales tax exemptions for school supplies, hurricane preparedness items, outdoor activity products, and firearms and ammunition.
"This budget delivers over $2 billion in tax relief for Florida's families and businesses, including a permanent sales tax exemption for back-to-school items every August, lasting tax exemptions for disaster preparedness items, the removal of the commercial income tax, and a Second Amendment sales tax exemption from September 8 through December 31 of this year," DeSantis announced on X. "Since taking office, I have provided nearly $10 billion in tax relief to Floridians," he emphasized.
The newly enacted legislation, known as HB 7031, received the green light from the state Legislature on June 16 and became effective on the following Tuesday.
Key Components of the Tax Relief Package
Starting October 1, the 2% tax on commercial leases will be abolished, a long-awaited measure for small business owners. This change is anticipated to decrease state and local revenues by over $1.1 billion in the upcoming fiscal year.
Permanent sales tax exemptions will apply to hurricane preparedness products such as batteries, tarps, and portable generators. Outdoor items like life jackets, bike helmets, sunscreen, and insect repellent will also benefit from lasting tax exemptions.
Additionally, there will be free entry to state parks and select events, including NASCAR races at the Homestead-Miami Speedway. Sales of gold, silver, and platinum bullion under $500 will be tax-exempt, expanding an existing exemption for larger transactions.
Special Tax-Free Seasons
Every August, a school tax-free season will allow Floridians to avoid taxes on:
- Clothing, footwear, and backpacks up to $100
- Personal computers up to $1,500
- School supplies up to $50
- Learning aids up to $30
This initiative is expected to save Florida families $217 million in its first year.
From September 8 to December 31, a tax-free period for outdoor activities will cover items for hunting, fishing, and camping, including:
- Firearms and ammunition
- Bows, arrows, rods, and reels up to $75
- Tents up to $200
- Sleeping bags and portable stoves
This measure is estimated to result in $44.8 million in savings.
Additional Measures in the Package
The package also includes the repeal of the aviation fuel tax and expands the use of tourist taxes to fund beach lifeguards and develop infrastructure in fiscally constrained rural counties.
Public Reactions
Bill Herrle, executive director of the National Federation of Independent Business in Florida, applauded the removal of the commercial rent tax, describing it as "the culmination of a decade-long effort." He stated that this measure will provide "immediate economic relief" to small businesses renting spaces across the state.
Fiscal Impact
While the tax cut amounts to $1.6 billion in the first year, its recurring effects could exceed $2 billion in subsequent years. Senate spokeswoman Katie Betta noted that the impact on the state's general revenue will be approximately $1.3 billion. The governor signed this package alongside the approval of the new state budget for the 2025-2026 fiscal year, which also took effect on Tuesday.
Frequently Asked Questions about Florida's Tax Relief
What are the main features of the tax relief package in Florida?
The tax relief package eliminates the 2% commercial lease tax, provides permanent sales tax exemptions for hurricane preparedness and outdoor items, and introduces tax-free periods for school supplies and outdoor activities.
How will the tax changes affect small businesses in Florida?
Small businesses in Florida will benefit from the removal of the commercial rent tax, which is expected to offer immediate economic relief.
When do the tax-free seasons take place?
The tax-free season for school supplies occurs every August, while the tax-free period for outdoor activities runs from September 8 to December 31.