Florida House Approves Major Sales Tax Cut
Florida House Approves Major Sales Tax Cut, Set to Take Effect in 2025
In a historic move, the Florida House voted unanimously on Wednesday to approve HB 7031, a sweeping bill that would permanently reduce the state’s general sales tax rate. This change could reshape the state’s revenue landscape starting next year.
The legislation would lower Florida’s general sales tax rate from 6% to 5.25%, effective July 1, 2025. HB 7031 is the first significant change to the state’s sales tax rate since 1988, when lawmakers increased it following the repeal of a short-lived services tax.
The bill also proposes across–the-board cuts to other related tax rates:
- Commercial rent tax: Reduced from 2.0% to 1.25%
- Electricity tax: Dropped from 4.35% to 3.6%
- Mobile home sales tax: Lowered from 3.0% to 2.25%
- Coin-operated amusement machines: Cut from 4.0% to 3.25%
Additionally, the legislation includes technical updates to the formulas used for calculating taxes on vending and amusement machines, helping ensure consistency with the new rates.
While the bill offers potential relief for Florida residents and businesses, it has a significant price tag. A legislative analysis projects an annual $4.89 billion reduction in state general revenue and a $539.7 million drop in local government revenue.
HB 7031 was introduced by the House Ways & Means Committee and reflects a top priority announced in March by House Speaker Daniel Perez. With unanimous support in the House, the bill now heads to the Senate for further consideration.
Whether you’re a business owner, a consumer, or a policy watcher, this proposed change is one to keep on your radar. If passed into law, it could mean meaningful savings at the register—and major adjustments for Florida’s state and local budgets.
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