Florida House Approves $5.43 Billion Tax Cut, Eliminates Holidays

The Florida House has proposed a $5.43 billion tax cut package that would eliminate sales tax 'holidays' for the first time in 16 years, instead opting for a permanent reduction of the sales tax rate from 6 percent to 5.25 percent. This plan, backed by House Speaker Daniel Perez, also includes cuts to commercial lease taxes and sales taxes on various items. Governor Ron DeSantis favors property tax breaks instead and wants to offer a one-time property tax relief for homesteaded properties. The House argues that their sales tax relief would benefit all Floridians, while the Senate suggests caution regarding long-term tax cuts. The upcoming budget negotiations between the House and Senate will be critical in determining the final tax package for the 2025-2026 fiscal year. Senate President Ben Albritton has emphasized the importance of temporary tax cuts to avoid future budget shortfalls.