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Other Legislation from Budget Conference
SB 2502 - Implementing Bill
The Florida Legislature’s annual implementing bill serves as a companion to the state’s General Appropriations Act by enacting the temporary legal and statutory changes needed to carry out the budget. It authorizes one-year modifications to state law, such as adjusting funding formulas, granting agencies flexibility to realign budgets, and incorporating specific metrics for programs like education and healthcare. These provisions typically expire at the end of the fiscal year, at which point the underlying laws revert to their original form. In essence, the implementing bill provides the legal framework necessary to ensure the state can execute the budget as intended.
This year's implementing bill contains a provision that authorizes the Governor’s Office of Policy and Budget (OPB) to review any local government that received state funding during the current or previous fiscal year. The review can examine spending and operations for fiscal years ending September 30, 2024, and 2025, focusing on identifying illegal diversity, equity, and inclusion (DEI) activities, waste, fraud, abuse, mismanagement, and duplicative functions. The Office can access records, data systems, personnel, financial documents, and physical premises. Local governments must comply within 7 business days or face fines of $1,000 per day, enforced through the Administration Commission. An initial report summarizing findings and recommending improvements must be submitted by OPB to state leadership by January 13, 2026. The section expires July 1, 2026.
HB 7031 - Taxation
The FY 25-26 Florida tax package, outlined in HB 7031, delivers $1.3 billion in new tax relief measures for families and businesses. One of the most significant changes is the permanent elimination of the state sales tax on commercial leases, effective October 1, 2025.
The legislation also expands and adds several sales tax holidays. It creates a permanent Back-to-School Sales Tax Holiday each August, covering clothing, shoes, backpacks, school supplies, and personal computers or accessories, subject to specified price limits. A new Florida Hunting, Fishing, and Camping Sales Tax Holiday will run from September 8 through December 31, 2025, allowing tax-free purchases of gear and supplies related to these outdoor activities. Additionally, the bill permanently exempts certain items from sales tax, including disaster preparedness supplies such as batteries, fuel tanks, generators, tarps, and tie-down kits; health and safety items like fire extinguishers, smoke detectors, carbon monoxide detectors, sunscreen, insect repellent, life jackets, and bicycle helmets; and admission to Florida State Parks.
The package also directs the Office of Economic and Demographic Research to study ways to reduce or eliminate property taxes on homesteaded properties, with a report due by fall 2025 to inform a potential constitutional amendment for voter consideration in the 2026 general election.
Additionally, the current freeze on local communication services tax rates—covering phone and TV services—will be extended through 2031. Lastly, the bill establishes the “Home Away From Home” Tax Credit, providing businesses with tax credits when they contribute to organizations that house families of critically ill children receiving care far from home.
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