TALHASSEE – Florida retains the sales tax “Holiday” every August for items back to school, but under a tax package released by House and Senate leaders on Friday night, sales taxes such as commercial leases and hurricane supplies and sunscreen will be eliminated.
The House and Senate will vote for the tax package earlier this week, along with the state budget for the 2025-2026 fiscal year. The tax package is projected to reduce state and local government revenues by about $1.3 billion in the future.
Senate Speaker R-Trinity, Speaker Ed Hooper, told reporters Friday that tax cuts would not “get rich and take European holidays.”
“Do you save a lot of money for what we’re doing? Probably not,” he said. “But you’ll save some.”
House and Senate leaders have previously said they are planning to eliminate the 2% sales tax on commercial leases, a long cut that business lobbyists are seeking. Lease tax removal compensates for an estimated $904.8 million of projected reductions within the package.
House Budget Chairman R-Dover Lawrence McClure has pushed back the proposal that the package is leaning towards businesses rather than individuals.
“The concept that businesses don’t employ people who are part of their families is nonsense,” McClure said.
“If these tax credits give businesses relief and allow them to grow and thrive in Florida, that’s good for employees, Floridians who work for those companies,” added McClure.
The annual legislative session was scheduled to end on May 2, but the extension was forced due to differences in the House and Senate on spending and tax cuts. After lawmakers pass the budget, Gov. Ron DeSantis will take about two weeks to sign and issue a veto before the start of July 1st of the fiscal year.
Desantis pushed homeowners to provide property tax rebates as a prelude to 2026 to ask voters to pass constitutional amendments and cut or eliminate property taxes. However, the idea for a tax rebate was not included in the package released on Friday evening. However, the package includes $1 million for Congress’s Economic and Demographic Research Bureau to study property tax changes.
The second-largest tax cut in the package, which is projected to be $167.7 million in the upcoming fiscal year, will come from tax holidays from schools. The state holds such a tax-free shopping period almost every year, but it had to be approved annually. The new packages make holidays possible throughout August each year.
The package also includes sales tax exemptions for hurricane supplies such as certain types of batteries and portable generators. Other exemptions included in the package bill will eliminate taxes such as sunscreen, insect repellents, NASCAR Championship race tickets, fire extinguishers, smoke detectors, life jackets, bicycle helmets and entry to state parks. Past states have held tax-free holidays related to hurricane preparation and recreational activities.
The package also leads to a one-time tax holiday for hunting, fishing and camping equipment from September 8th to December 31st. Additionally, it includes abolishing the aviation fuel tax and reducing the cardroom tax on the Parimute UE.
