Florida Taxwatch is monitoring the latest tax cut proposals that will pass the 2025 Florida Legislature.
Property tax or consumption tax?
The House Ways & Means Committee unanimously passed the proposed committee bill (now HB 7031) which would reduce the state’s sales tax by 0.75 percentage points from 6.0% to 5.25%.
In sales tax, TaxWatch points out that only 6.0% (2.0%) of state taxes, electricity (4.35%), coin-operated amusement games (4.0%) and mobile homes (3.0%) can also reduce the percentage of state taxes by 0.75%.
Under the current proposal, the sales tax cut proposal would save taxpayers $5.4 billion in this first year.
Gov. Ron Desantis hopes that the GOP-controlled Congress will pass a $5 billion property tax relief proposal. His plan calls for more than 5 million Florida Homestead property owners to receive an average rebate (using state funds) in November. The governor wants to pursue a greater asset tax cut, including the possibility of tax abolition.
Where is Governor DeSantis’s plan now?
The Florida Senate was largely silent on its tax cut plan, but President Albritton said both the House and the governor’s proposals deserve consideration. But correctly warns about creating a future budget deficit, he said he prefers to cut the session and study potential permanent cuts (at one time).
Advances in business rent tax cuts
Florida Taxwatch praises the House for including business rent taxes in the tax reductions in its sales tax mitigation plan. Eliminating this tax has been a top priority for years, and our research has helped reduce this unique, anti-competitive tax from 6.0% to the current 2.0%. No matter what tax credit packages this session is being handed over, Florida Taxwatch strongly recommends that it includes a business rent tax. The HB 7031 will be considered on the house floor next Wednesday.
