Governor DeSantis signs new, trimmed budget

By Tami Stevenson

On June 30, in Wildwood, Florida, Governor Ron DeSantis signed the Budget for Fiscal Year (FY) 2025–2026, and a related tax cut package, HB 7031, Taxation, totaling $117.4 billion after $567 million in line-item vetoes. The budget passed by the Legislature totaled $117.9 billion, and following line-item and other vetoes, this budget is roughly only $10 million above the Governor’s Recommended budget from February and is about $3 billion less than last year. The budget also maintains $15.7 billion in reserves.

     Some highlights of the new budget include a 2% raise for state workers and a 10% to 15% pay raise for state law enforcement along with $15.9 billion

in funding for the K-12 public school system. It will provide $9,130 per student, an increase of $143 over last year. This investment will also cover the costs of over 429,000 students who are projected to participate in Florida’s school choice program—the Family Empowerment Scholarship, with other additional funding for Florida’s K-12 students.

     Other highlights include the tax relief package (HB 7031). It provides tax relief for Florida residents and businesses by permanently eliminating the business rent tax and offering broad-based tax relief opportunities for Florida consumers.

     “The bill permanently eliminates the sales tax on many disaster and hurricane preparedness supplies as well as several safety and health-related items. This targeted tax relief legislation creates a permanent annual Back-to-School Sales Tax Holiday for the month of August and a new sales tax holiday this fall for Floridians exercising their constitutional right to hunt and fish,” said Senate President Ben Albritton, R-Wauchula, in a release.

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Beginning October 1, Florida businesses will no longer owe taxes on their rent.

     Experts say the bill will cut more than $2 billion in taxes – $1.3 billion in state revenues, and $700 million from local governments – but around two-thirds of it will come from eliminating the tax on commercial leases.

     “Florida is the only state in the country that taxes business rent. It’s bad policy and we eliminated it in this, which I think is good.” DeSantis said.

     Other segments of the bill permanently exempts the following items from sales tax:

•AA-cell, AAA-cell, C-cell, D-cell, 6-volt, or 9-volt batteries.

•Fire extinguishers, smoke detectors or smoke alarms, and carbon monoxide detectors.

•Certain portable generators.

•Waterproof tarpaulins and other flexible waterproof sheeting 1,000 square feet or less.

•Ground anchor systems and tie-down kits.

•Five gallon or less gas or diesel fuel cans.

•All bicycle helmets (currently only youth helmets are exempt).

•Sunscreen, insect repellant, and life jackets.

•Admission to Florida State Parks.

     The bill permanently eliminates the sales tax on purchases of gold, silver, and platinum bullion when purchased in units valued under $500. Units valued over $500 are already tax-free.

     It creates a Florida Hunting, Fishing, and Camping Sales Tax Holiday, which will be from September 8 – December 31, 2025, offering tax-free savings on camping, fishing, and hunting supplies,

     HB 7031 also extends the Freeze on Local Cell Phone and TV Taxes. HB 7063 (2023) froze the local communications services tax rates for three years and would have ended January 1, 2026, but HB 7031 will extend the current freeze until 2031.

     DeSantis said, “This year’s budget continues our commitment to repaying our debts ahead of schedule, saving money for Floridians, and delivering tax relief for Florida families.”