Senate President Ben Albritton laid out a $2.1 billion tax relief bill (SB 7034) Monday that, if passed by the Legislature, would direct Florida’s top government economists to delve into the financial implications of permanently reducing property taxes.
The reduction is significantly less than the near-$5 billion House Speaker Daniel Perez has pushed for through a reduction in the sales tax rate paid on goods and services (HB 7031) and the $5 billion Gov. Ron DeSantis wants to give Florida homeowners in the form of $1,000 in property tax rebates.
Of the $2.1 billion reduction proposed by the Senate, nearly $947 million would be permanent, a staff analysis shows. One Albritton target is the sales tax on clothing and shoes priced at $75 or less.
The bill directs the Office of Economic and Demographic Research to conduct a study to establish a framework to reduce, or eliminate taxes for homesteaded property. The report on accomplishing those goals would be submitted to legislative leadership by Nov. 1.
The study must include at least:
- An analysis of the potential impact of eliminating property taxes on public services, including education, infrastructure, public safety, and emergency services.
- An assessment of potential housing market fluctuations, including changes in homeownership rates and property values.
- An analysis of consumer behavior regarding home improvements that now result in property tax increases, including elevating homes in flood-prone areas, adding a mother-in-law suite, etc., and whether reducing or eliminating property taxes would change consumer behavior leading to an increase in resiliency.
The findings would help inform the Legislature about how to “craft a constitutional amendment for voters to consider during the next General Election.”
An example of a nonrecurring tax relief would be a one-time credit for the annual license tax tag fees associated with annual vehicle registrations.
The credit would apply to new registrations issued on or after July 1, 2025, and existing registrations that expire after Sept. 30, 2025. The credit would be available until October 2027, to ensure residents who purchase registrations before the tax credit takes effect and those who purchase two-year registrations can take advantage of the opportunity.
Another example of a nonrecurring sales tax is the newly created tax holiday for hunting season between Sept. 8 and Dec. 31, when enthusiasts can save on “ammunition firearms, bows, crossbows, and related accessories,” according to a press release announcing the details of the tax package.
The Florida Senate Committee on Finance and Tax is set to consider the proposed tax package Tuesday afternoon.