A proposal to permanently reduce Florida’s sales tax rate advanced in the House on Wednesday, with the Ways & Means Committee voting unanimously to approve a measure bill to cut the state’s general sales tax rate from 6 percent to 5.25 percent..
The bill, sponsored by the committee, also lowers several other state sales tax rates by 0.75 percentage points to align with the general rate reduction. The commercial rent tax would be reduced 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 authorizes the Department of Revenue to adopt emergency rules to implement the changes. That provision would take effect upon becoming law, while the rate reductions themselves would begin at the start of the 2025–26 fiscal year.
Florida’s sales tax currently generates nearly three-quarters of the state’s general revenue, and total collections are projected to exceed $41 billion next year. The 6 percent general rate has remained unchanged since it was last increased in 1988.
According to a legislative analysis, the proposal would reduce general revenue by $4.89 billion and local government revenue by $539.7 million annually.
The bill passed with bipartisan support from all 19 members of the committee, including both Republicans and Democrats
The legislation implements a tax policy first announced by House Speaker Daniel Perez on March 26 as part of the chamber’s broader budget framework. Perez said the reduction is intended to be permanent and recurring, distinguishing it from the temporary tax holidays enacted in prior years.