The Florida House voted unanimously on Wednesday to approve legislation that would permanently reduce the state’s general sales tax rate, advancing a measure projected to significantly lower state and local revenues beginning next year.

The bill, HB 7031, would lower the state’s general sales tax rate from 6 percent to 5.25 percent, effective July 1, 2025. The legislation also reduces several other state sales tax rates by 0.75 percentage points to align with the general reduction.

Under the proposal, the commercial rent tax would drop from 2.0 percent to 1.25 percent, the tax on electricity from 4.35 percent to 3.6 percent, the tax on new mobile home sales from 3.0 percent to 2.25 percent, and the tax on coin-operated amusement machines from 4.0 percent to 3.25 percent. The bill also includes technical changes to update formulas used to calculate sales taxes on vending and amusement machines.

According to a legislative analysis, the bill would reduce general revenue by an estimated $4.89 billion annually and local government revenue by $539.7 million and sales tax is Florida’s largest source of state funding, accounting for nearly 74 percent of general revenue.

Florida’s general sales tax rate has remained at 6 percent since 1988, when the Legislature last increased the rate following the repeal of a short-lived tax on services. The tax was first adopted in 1949 and has since become the largest single source of recurring revenue for the state.

The legislation was sponsored by the House Ways & Means Committee and reflects a priority announced in March by House Speaker Daniel Perez.