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LEGISLATION SPOTLIGHT:
PROPERTY TAXES & THE LEGISLATIVE TAX PACKAGE
HJR 203 – Eliminating Non-School District Ad Valorem Taxes for Homestead Properties
The Governor and presiding officers of the Legislature have devoted a considerable amount of time and effort to the concept of property tax reform. In the lead up to the 2026 Legislative Session, roughly a dozen joint resolutions and bills were filed, with many owing their origin to the workshops held by the House Select Committee on Property Taxes over the summer. The proposals spanned from eliminating all homestead property taxes, to more narrowly tailored approaches such as increasing the amount of portability or exempting home-hardening improvements. The various proposals aimed to provide financial relief to homeowners; however, the proposals have also faced substantial skepticism regarding the ability of local government to replace critical revenue streams essential to maintaining public services.
One of the only proposals to move through the process is HJR 203, filed by Rep. Miller, which we covered in the Week 2 Rotunda Report. The original filed version of the joint resolution proposed an amendment to the Florida Constitution that would phase out non-school property tax for homestead properties over a 10-year period while also prohibiting local governments from reducing funding for law enforcement services. According to a preliminary staff analysis, if the constitutional amendment passed, it was projected to reduce local non-school property tax revenues by $4.8 billion in one-time cash impacts and $14.7 billion in recurring impacts in FY 2027–28, assuming current millage rates. These impacts would have increased each year of the 10-year phase out period.
However, during the floor vote by the House on February 19, an amendment was approved that would make the elimination effective starting in 2027. After the House passed the amendment to HJR 203, it was received by the Senate and referred to the Appropriations Committee. Since being received by the Senate, no further action has occurred as of the date of this Report. The Governor and Senate President have expressed a desire to ‘get it right’ instead of ‘doing it quickly’ and indicated that the issue will need to be done in a special session following the conclusion of the current regular session, which is currently scheduled to end on March 13. With the two chambers still in disagreement over the budget, the odds continue to rise that a budget will not be passed in time, which usually means that the regular session will need to be extended to accommodate continued deliberations. It is likely that the property tax discussion will continue either in concert with passing a budget, or in subsequently set Special Sessions.
As a reminder, Joint Resolutions passed by the Legislature cannot be vetoed by the Governor and like other proposed amendments to the Florida Constitution, must be approved by 60% of the voters during the 2026 General Election.
HB 7031 & SB 7046 - Proposed Legislative Tax Packages
Every year, the House Ways and Means Committee and the Senate Finance and Tax Committee file their respective initial versions of the Florida Legislature’s Tax Package. The Tax Package generally contains numerous provisions affecting tax policy ranging from statewide impacts to impacts on the local level, such as sales tax holidays, corporate taxes, property tax exemptions, and more. The House released their version on February 24, which was subsequently filed as HB 7031. House staff estimates that in total the bill will reduce state and local government revenues collected by approximately $326.4 million ($92.9 million recurring). The Senate released their versions on February 20, which were subsequently filed as SB 7046 and SB 7048. Senate staff estimates the bill to reduce revenues in total by $80.1 million ($8.1 million recurring). If enacted, the provisions of the Tax Package discussed below take be effect July 1, 2026, and could be utilized beginning with the 2027 property tax roll. Each version provides differing provisions seeking to provide relief to everyday Floridians.
Provisions Similar to Both the House and Senate Versions
Decoupling of Florida’s Corporate Income Tax Laws from Recent Federal Changes
The Unites States Congress adopted President Trump’s “One Big Beautiful Bill Act” on July 3, 2025, which was signed into law on July 4, 2025. The bill reinstated and modified provisions from the 2017 Tax Cuts and Jobs Act, and made new changes to federal corporate income tax regulations.
Florida levies a 5.5 percent tax on the taxable income of corporations and financial institutions doing business in Florida, and typically looks to the federal Internal Revenue Code (IRC) to determine an entity’s income tax liability for a given tax year. Procedurally, this is accomplished by annually adopting the IRC as it exists on January 1, which incorporates any changes made at the federal level during the previous year. However, the Legislature may choose to not adopt, or to “decouple,” from particular changes made to the IRC in the prior year, and instead specify its own treatment of the issue, or allow the previous IRC treatment to continue for Florida tax purposes.
HB 7031 and SB 7048 update the Florida corporate income tax code by adopting the IRC as amended and in effect on January 1, 2026, except for several specified sections that were amended by, or created in, the One Big Beautiful Bill. The bills as proposed retain the current law treatment of the following issues by retaining an adoption of the IRC as of January 1, 2025, for the following sections:
- Section 168(k), relating to bonus depreciation of assets;
- Section 174(a), relating to amortization of certain research and experimental expenditures;
- Section 163(j), relating to the deduction for interest paid by businesses;
- Section 274, relating to deductions for certain business meals; and
- Section 179, relating to deductions made by certain small businesses.
The bill does not adopt new sections created by federal law found in the following sections:
- Section 168(n), related to a deduction for qualified production property, and
- Section 174A, a new deduction relating to domestic research and experimental expenditures.
By decoupling from these provisions, the bills retain the current corporate income tax structure for Florida taxpayers, effectively preventing between $1.5 billion and $3.5 billion in lost revenue to the state.
Sales and Use Taxes
Both HB 7031 and SB 7046 create a temporary sales tax holiday from September 1, 2026, through December 31, 2026 for items commonly used in hunting, fishing, and camping, such as ammunition, firearms, bows and crossbows, fishing supplies, and camping supplies. Both bills exempt portable tanks for butane gas, propane gas, natural gas, or all other types of liquefied petroleum gases with a capacity of 20 pounds or less from Florida sales and use tax. A slight difference between the two bills is that HB 7031 revises the back-to-school sales tax holiday from occurring during the entire month of August, and instead would occur from July 20 to August 20.
Posting of Estimated Property Taxes on Real Estate Listing Platforms
Both bills require online listing platforms, such as Zillow, to include the estimated property taxes for any residential property visible on their platform. "Listing platform” is defined to mean any public-facing online real property listing platform, including, but not limited to, websites, web applications, and mobile applications, but excludes social media platforms. The bill also provides that a current owner’s tax information may not be used in calculating estimated property taxes and requires listing platforms to calculate and display estimated property taxes by using one of two prescribed methods. Estimated property taxes must be calculated using either:
- The listing price of the property and current millage rates using a formula developed by the Department of Revenue (DOR), or
- The listing price of the property and countywide aggregate average millage rates developed by the DOR.
The bill states that there is no liability on the part of, and no cause of action may arise against, any person for an inaccurate estimate of property taxes for a property listed on a listing platform.
Main Differences Between Both Versions
House Specific Provisions
Collection of Taxes by Vacation Rental Platforms
HB 7031 contains a provision requiring advertising platforms, such as Airbnb or VRBO, to collect and remit taxes due resulting from the reservation of a vacation rental property and payment through an advertising platform. The bill also includes the tax collection and remittance requirements for advertising platforms and provides that the taxes an advertising platform must collect and remit are based on the total rental amount charged by the owner or operator for use of the vacation rental.
Exemption for Home Hardening Products
HB 7031 creates a two-year exemption from the sales and use tax on the sale of home hardening products used on eligible residential properties. Home hardening products are defined as impact-resistant doors, garage doors, and windows that are designed to resist wind and wind-borne debris forces. They must be rated for impact resistance and wind pressure in accordance with the most recent test methods, standards and specifications. To be eligible for the refund, home hardening products would have to be purchased from July 1, 2026, through June 30, 2028, and be used on site-built dwellings on residential property granted a homestead exemption, with a maximum just value of $700,000.
Rental of Homestead Properties by Certain Diplomatic, Intelligence, Consular, and Foreign Service Officers
HB 7031 creates a provision that preserves homestead benefits for property that is rented by a diplomatic, intelligence, consular, or foreign service officer of the United State Government whose employment requires the individual to be stationed, deployed, or directed to reside outside of Florida.
Senate Specific Provisions
Net-zero Policies by Governmental Entities
SB 7046 provides that a governmental entity may not enact or enforce, or require any person or legal entity to enact or enforce, a resolution, ordinance, rule, code, or policy to support a net zero policy, including as a condition of any contract or agreement between the governmental entity and a third party. A “net-zero policy” means any policy, program, or initiative designed to achieve a balance between total amount of greenhouse gas emitted into the atmosphere with an equal amount removed from the atmosphere. The bill prohibits a governmental entity from imposing any charge, including a tax, fee, penalty, offset, or assessment, to advance a net zero policy. The House version of this provision is found in a stand-alone policy bill, HB 1217, which has already passed the House and currently sits in the Senate Rules Committee.
Electric Vehicle Charging
SB 7046 contains a provision that eliminates the double taxation for the sale of electric vehicle charging. The sale of electricity directly to customers by a third-party in Florida has only been permitted since 2012. However, since allowing for such sales, charging station owners and customers have effectively been double-taxed. The provision would clarify the taxation structure and conform it to how gas tax is typically collected.
Live Local Opt-Out Provision
SB 7046 contains a provision that impacts the Live Local Opt-Out Provision originally passed in 2024. SB 7046 provides that an exemption may be granted to a Live Local project that was issued a building permit on or after July 1, 2026, and that was within 4 years before a taxing authority opted out. The owner may continue receiving the exemption for each subsequent consecutive year that the same owner or successive owners apply for and are granted the exemption. Though HB 7031 does not make changes to the Opt-Out, HB 1389 contains a provision that repeals the Opt-Out.
Stearns Weaver Miller will continue to monitor all aspects of Florida tax legislation, including the proposed bills, as the 2026 Florida Legislative Session continues, and provide an update after such bills pass.
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