Florida Legislature Greenlights New Tax Regulations: Key Insights for Residents and Businesses

TALLAHASSEE, Fla. – In a significant move on Friday, Florida lawmakers gave the green light to the annual state budget during the most recent special legislative session. However, the approval process did not stop there, as it also ushered in a series of new tax regulations that could have wide-ranging effects on the state’s residents.

The tax changes emerged as part of House Bill 7031E, a piece of legislation seamlessly integrated into this year’s comprehensive budget plan. Yet, for these changes to be enacted, they await the crucial signature of Governor Ron DeSantis.

For those keen to understand the potential impact of these new rules, here’s a detailed breakdown as provided by legislative analysts:

SALES TAXES

In the meantime, below is a lineup of these new tax rules, per legislative analysts:

SALES TAXES

• Back-to-School Tax Holiday — The new back-to-school sales tax holiday created last year will now begin on July 20 (before school starts) and run through Aug. 20 each year.

• New Tax Holiday — Creates a new hunting, fishing and camping sales tax holiday from Sept. 1 – Dec. 31 this year. The items covered by this provision are as follows:

• Home Hardening — Allows purchasers of home hardening products — such as impact-resistant doors, garage doors and windows — to seek a sales tax refund for purchases between July 1, 2026, and June 30, 2029.

• Propane Tanks — Creates a permanent tax exemption for propane tanks with a capacity of 20 pounds or less.

• State Universities — Allows state colleges and universities to obtain refunds for sales tax paid by contractors on materials used in public works contracts.

• Sports Tournaments — Exempts admissions to any Association of Tennis Professionals’ ATP Masters 1000 tournament or any Women’s Tennis Association’s WTA 1000 tournament from sales taxes through July 1, 2029.

• Heavy Trucks — Allows purchasers of certain heavy trucks to designate up to $105 of sales tax paid to an eligible nonprofit scholarship-funding organization under the Florida Tax Credit Scholarship Program.

PROPERTY TAXES

• Save Our Homes — Allows the “Save Our Homes” benefit to transfer to a new homestead from any homestead abandoned in the prior three years.

• Listing Websites — Requires online properly listing platforms to include the estimated property taxes for residential properties.

• Intelligence Officers — Lets a homeowner continue to qualify for homestead benefits when the property is rented to another person, so long as the homeowner is a diplomatic, intelligence, consular, or foreign service officer of the federal government who is required to live outside of Florida.

• Military Members — Adds additional named military operations for the deployed servicemember property tax exemption and allows deployments in 2023, 2024 and 2025 on named operations to qualify for the exemption.

OTHER RULES

• School Levies — Removes the requirement for a board of county commissioners to call an election for school district levies, instead requiring school board-approved resolutions to be voted on by voters in the next general election held over 90 days after adoption.

• Alarm Systems — Extends a temporary exemption through June 30, 2028, for non-interest-bearing written obligations to pay $3,500 or less, when given by a customer to an alarm system contractor for the sale of an alarm system.

• Slot Machines — Reduces the tax on slot machine revenues from 35% to 34%.

• Cardroom Revenues — Reduces the gross receipts tax on cardroom revenues from 8% to 5%.