Today, the President of the Florida Senate announced that tax relief has stalled the budget negotiations for the 2025 Regular Session. This means the Florida legislature will likely have to return in a Special Session to resolve tax and budget bills before the start of the state fiscal year on July 1, 2025.
The Senate announced they had offered a tax relief package of nearly $3B in the first year and $1.3B in future years. That relief would include a temporary elimination of certain motor vehicle fees, a permanent sales tax exemption on clothing under $75, a 1% reduction of the business rent tax (to 1%), and the historic sales tax holidays. See Senate Bill 7034.
The House's current legislation would result in a $5B tax reduction in the first year and a $5.48B recurring reduction thereafter. Cornerstones of House Bill 7033 are a permanent 0.75% reduction of all sales tax rates and a redirection of tourist development tax (bed taxes) to offset local property taxes. The House bill will be considered on the floor of the full House tomorrow morning.
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