TAX REFORM

Florida lawmakers are currently debating several tax reform proposals that could significantly impact residents and businesses.

Sales Tax Reduction

House Speaker Daniel Perez has proposed permanently lowering the state sales tax from 6% to 5.25%. However, Senate President Ben Albritton has expressed concerns about future state revenue projections, suggesting that now may not be the right time for such a long-term tax cut.

Tax Breaks

SB 7034 has been introduced to expand tax breaks, including sales tax exemptions on clothing, shoes, and certain precious metals. It also renews several tax holidays for 2025, such as back-to-school and disaster preparedness exemptions.

Affordable Housing Tax Relief

The House is pushing for property tax exemptions on land used for affordable housing. The proposal would require local governments to prioritize permit applications for such developments.

Property Taxes

Senator Jonathan Martin has introduced SB 852, which seeks to explore the feasibility of eliminating property taxes altogether. The bill directs a study on how this would impact public services and alternative revenue streams.

Bed Tax Amendment

Florida lawmakers are considering a House tax amendment (HB 7033) that would significantly change how tourist development tax (TDT) funds—often called "bed taxes"—are used. The bill was passed in the House on 4/25 with 78 yea votes to 29 nays.

Currently, counties must allocate a portion of TDT revenue to tourism-related projects, such as advertising campaigns and convention center funding. However, the proposed amendment would allow counties to use these funds for general purposes, including offsetting property tax reductions. 

Critics of the amendment argue that this move could harm Florida’s tourism industry, which relies on these funds to attract visitors. Some lawmakers and industry leaders warn that shifting TDT revenue away from tourism could reduce overall tax revenue, as tourists contribute significantly to the state’s economy through sales taxes, gas taxes, and other fees.

HOME RULE

Land Use

Bills like Senate Bill 1118 and House Bill 1209 propose changes that would reduce local governments' authority over land-use decisions. These bills aim to allow agricultural land to be developed without local approval, raising concerns about unchecked urban sprawl and the loss of community planning. 

Proponents say that these efforts would help revitalize rural communities and bring much needed jobs and resources to them.

Regional Planning Councils

Proposals such as SB 1264 and HB 1125 seek to eliminate regional planning councils, which play a crucial role in local community planning. This has sparked worries about the potential for unregulated development. 

Proponents say the bills reflect efforts to balance economic development with streamlined governance.  

Lee County Home Rule Charter

Passed in the House on 4/24, Florida House Bill 4001 focuses on amendments to the Lee County Home Rule Charter. The bill proposes requirements for single-member districts in Lee County, which would need to be approved by voters. If signed by Governor DeSantis, the bill will require a referendum on the 2026 Lee County ballot. If passed by Lee County voters, BOCC districts will then become single-member districts.

Community Redevelopment Authorities (CRAs)

Florida House Bill 991 is advancing through the legislative process and proposes the termination of all CRAs by the end of fiscal year 2045 or the termination date in their charter, whichever is earlier. It also prohibits the creation of new CRAs after July 1, 2025. 

Existing CRAs would be barred from initiating new projects or issuing debt after October 1, 2025. Those with outstanding bonds can operate until the bonds mature, but no later than October 1, 2045. 

While some lawmakers support the bill as a way to address alleged misuse of funds by CRAs, others argue that it could hinder redevelopment efforts in economically distressed areas. The bill was last heard in the Commerce Committee on 4/22.