FloridaHB 70312025HouseWALLET

Taxation

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Bill Overview

Analyzed Economic Effects

57 provisions identified: 36 benefits, 9 costs, 12 mixed.

Childcare operators gain property tax relief

Starting with the 2026 tax roll, leased space used by Gold Seal Quality childcare facilities can receive an educational property tax exemption. The operator must be responsible for property taxes under the lease. The owner must disclose the total tax benefit and how the operator will receive it.

Businesses stop paying commercial rental tax

Beginning October 1, 2025, Florida repeals its sales tax on covered rentals, leases, and licenses of real property. The law also removes related exemption language for college bookstores, fairgrounds, entertainment production companies, turnpike property, and high-speed rail. Those removals accompany the tax repeal; they do not create a new commercial rental tax. Qualifying personal-property exemptions for high-speed rail remain.

Citrus businesses get equipment tax relief

For the 2025 tax roll only, qualifying citrus equipment is valued at no more than its salvage value. A citrus packinghouse or processor must own and operate the equipment, which must be unused because of citrus greening. The change applies back to January 1, 2025. Owners had to apply to the property appraiser by August 1, 2025.

Farms keep tax relief longer

Beginning July 1, 2025, qualifying farmland keeps its agricultural tax classification for 10 years instead of 5. The period starts when the owner signs a compliance agreement under a state or federal eradication or quarantine program. Land kept fallow or replanted in citrus under that agreement can receive an assessment of up to $50 per acre. Land switched to another allowed income-producing farm use follows the usual agricultural assessment rules.

August tax savings for school shoppers

Each August, qualifying purchases are free from Florida sales tax. Price limits are $100 per clothing item, wallet, or bag; $50 per school supply; and $30 per learning aid or puzzle. Personal computers and related accessories qualify at $1,500 or less for noncommercial home or personal use. Sales inside specified theme parks, entertainment complexes, public lodging establishments, and airports do not qualify.

Transportation funding cap falls and shifts

A yearly State Transportation Trust Fund allocation is capped at the lesser of 20.5453% of remaining revenue or $360.08 million. The previous dollar cap was $466.75 million. Of this allocation, 13% goes to small-county outreach, 78% to the Strategic Intermodal System, and 9% to regional incentives. The law removes the earlier New Starts allocation and separate first-$60-million rail allocation.

State ends one housing funding allocation

The law removes one annual State Housing Trust Fund allocation: the lesser of 8% of the statutory remainder or $150 million. It also removes the related General Revenue allocation for any amount above $150 million. Other separately listed housing trust fund distributions remain.

Easier property appeals and refund interest

Beginning January 1, 2026, appraisers must provide relevant property record cards after receiving petitions from the clerk, without requiring an evidence exchange. They must notify petitioners when cards are online. Petitioners can request remote hearings in writing at least 10 calendar days ahead; counties under 75,000 people can opt out. Boards must provide working equipment, public access, and uniform witness, evidence, and record procedures. Separately, petition-related refunds earn statutory bank prime loan interest from when taxes would have become delinquent until payment, excluding payments above 100% of current taxes due.

Property owners gain assessment appeal protections

Beginning September 1, 2025, appraisers must provide hearing materials at least 15 days before a value adjustment board hearing. These include evidence lists, documents, witness summaries, and the property record card; missing materials require rescheduling. Starting with the 2026 tax roll, taxpayers with final board action get a 30-day court-filing window after recertification of an extended roll. That window applies only to rolls extended under the specified tax-roll extension law.

Customers get longer communications tax freeze

Local communications services tax rates in effect January 1, 2023, cannot increase before January 1, 2031. County or school board sales surtax increases levied on or after January 1, 2023, also cannot be added before 2031. The law prevents those increases rather than cutting existing rates.

Park visitors and racegoers pay less

Florida state park admission fees and annual entrance passes are exempt from admissions tax. The exemption also covers the NASCAR-sanctioned Cup Series Championship Race at Homestead-Miami Speedway. Qualifying and support races at that track are covered when held no more than 72 hours before the championship.

Temporary tax savings on outdoor gear

From September 8 through December 31, 2025, qualifying firearms, ammunition, bows, crossbows, and specified accessories are sales-tax-free. Camping limits are $200 for tents; $50 for sleeping bags, portable hammocks, stoves, and collapsible chairs; and $30 for lanterns and flashlights. Fishing rods and reels qualify up to $75 each or $150 per set; tackle boxes and bags qualify up to $30. Bait and tackle limits are $5 individually or $10 when sold together. Commercial fishing supplies do not qualify.

Businesses can refund unused scholarship credits

Beginning July 1, 2025, eligible businesses can seek refunds of unused earned scholarship contribution credits. Applications must reach the Department of Revenue by December 31, 2026. Businesses must attach the department's approval letter and their certificate of contribution.

Taxpayers gain early audit challenge rules

After sending an audit notice, the Department of Revenue can review information it already holds, voluntary submissions, and public information. That review during the 60-day notice period does not itself start the audit. Taxpayers who did not waive the notice period must object in writing before assessment to challenge a start before day 61. A successful formal or informal protest reduces the pause in the assessment time limit by the number of days the audit started early.

Counties can fund certified beach lifeguards

Counties collecting tourist development taxes can use that revenue for lifeguards on Gulf and Atlantic beaches. Covered costs include hiring, training, equipment, and insurance. Lifeguards must hold American Red Cross, YMCA, or equivalent nationally recognized aquatic certification.

New leased affordable housing tax break

Starting with the 2026 tax roll, qualifying multifamily units on government-owned property receive a property tax exemption, including proportional residential common areas. Projects must contain more than 70 income-qualified units and be newly completed after July 1, 2025, within five years before the first exemption request. The government land lease must last at least 30 years, with recorded terms predominantly requiring affordable housing. Lessees must apply by March 1, and at least 70 affordable units must remain available each January 1. The provision ends December 31, 2061.

Local governments must prioritize communications permits

Counties and cities receiving the specified communications-related distributions must prioritize using them for timely rights-of-way permit review, processing, and approval. The process must follow state and federal law, including required timelines. The law does not guarantee new household communications service.

More Prize Money for Florida Racehorses

The law raises race purse and purse-supplement funding from $2.5 million to $7.5 million for Florida-bred or Florida-sired horses. Gulfstream Park gets $6 million, up from $2 million; Tampa Bay Downs gets $1.5 million, up from $500,000. Horses must race at the track receiving the funding. Written agreements filed with the department set payment rates, procedures, and eligibility rules. Registration with the Florida Thoroughbred Breeders' Association is no longer required.

Slot License Fee Waived for Thoroughbred Tracks

Beginning July 1, 2025, thoroughbred permit holders no longer pay the annual commission license fee to renew their slot machine license. They must comply with Florida's slot machine laws to qualify for the waiver.

South Florida transit gains funding flexibility

Florida transportation officials can use funds dedicated to the Florida Rail Enterprise for annual South Florida Regional Transportation Authority support. The law removes the previous restriction on that funding source. It specifies no funding amount or transit service change.

Research centers receive more alcohol-tax funding

Four research centers receive 26% of specified remaining monthly alcohol-tax collections, up from 13%. Their combined annual funding cap rises from $30 million to $60 million. Monthly distributions follow the required earlier distribution and support lawful purposes, including research, clinical facilities, and related operations. This funding provision ends June 30, 2054.

Affordable apartment loans get project priorities

The law directs specifically appropriated apartment incentive loan money toward listed affordable-housing projects; it does not itself guarantee funding. Seventy percent goes to competitive redevelopment, nearby replacement housing, urban infill, mixed-use projects, or housing near military installations. The rest goes to public-land projects, young adults leaving foster care, elderly people, or rural-opportunity areas, with mixed-income projects prioritized. Projects must meet the referenced affordable-housing definition, despite the loan program's separate income limits; public-land projects need the land-owning government's agreement. The housing corporation must coordinate with the appropriate state agency, and the section is repealed June 30, 2033.

Affordable projects gain another exemption route

Starting with the 2026 tax roll, qualifying affordable-housing projects can use restriction agreements with a housing finance authority. Agreements with the Florida Housing Finance Corporation also remain available. Agreements must be recorded and require 99 years of affordability for households within the specified extremely-low- through moderate-income limits. Projects must have more than 70 units and meet the applicable new-improvement and substantial-completion requirements.

Existing housing projects keep exemption access

Multifamily projects that received the affordable-housing exemption before a local opt-out or renewal can keep receiving it. The same owner or a new owner must apply and receive approval in every following consecutive year. A local opt-out alone does not end this protection.

Housing funds gain budget transfer protection

The state cannot use the budget act to move specified housing trust fund distributions into General Revenue. The protection covers the designated distributions to both the State Housing Trust Fund and Local Government Housing Trust Fund. The provision does not state the amount protected.

Local governments get tax-loss reimbursement funding

Florida provides $500,000 to reimburse local taxing jurisdictions for qualifying property tax revenue losses from the specified tax-refund law. Jurisdictions must apply to the Department of Revenue by October 1, 2025. Applications need supporting loss records, including the required statutory notice. The provision ends June 30, 2027, and payments go to taxing jurisdictions, not households.

Nonprofit affordable housing land gains exemption

Beginning January 1, 2026, qualifying nonprofit affordable-housing land is exempt from property tax. A qualifying 501(c)(3) charity must own the land entirely or lease it from a housing finance authority for at least 99 years. The charity must meet federal affordable-housing charity rules, and the land must mainly serve households within the specified income limits. Qualifying assignments or subleases to residents for their own affordable housing are covered. The provision is repealed December 31, 2059.

Eligible development projects keep local incentives

Beginning July 1, 2025, preserved enterprise zone boundaries continue supporting local incentive programs. Eligible connected, multi-phase projects need at least one use or occupancy certificate issued before December 31, 2021. Their remaining phases can retain eligibility through completion, but no later than December 31, 2035.

Aviation fuel buyers get tax exemption

Beginning January 1, 2026, qualifying aviation fuel is exempt from Florida sales and use tax. Fuel must meet the law's aviation-fuel definition. The source does not specify any reduction in household airfares.

Businesses gain flexibility using housing donations

Home Away From Home supports charities housing families of critically ill children. Approved credits unused because a taxpayer's tax bill is too small can carry forward for up to 10 years. Transfers are limited to all-asset transactions or affiliated corporations keeping the same credit type; affiliated transfers require state approval. Rescinded credits return to the first-come, first-served pool only after state acceptance, with alcohol regulators also approving covered beverage-tax transfers and rescissions. Corporations and insurers can count earned credits when calculating estimated payments and underpayments; the insurer calculation uses 27% of prior-year net tax due.

Cardroom operators pay lower receipts tax

Cardroom operators pay state tax of 8% of monthly gross receipts, down from 10%. The law does not require operators to pass savings to customers or workers.

Charitable trusts leave corporate tax definition

For tax years beginning January 1, 2026, or later, Florida excludes charitable trusts from its corporate income tax definition. The provision does not specify the resulting tax savings for any trust.

Donation credits support sick children's families

Home Away From Home supports donations to Florida-based nonprofits providing free or low-cost housing for families of critically ill children receiving treatment. Beginning in fiscal year 2026–2027, Florida approves up to $13 million in credits yearly, first come, first served, through 2031–2032. Eligible charities must have their principal office in Florida and qualify under federal 501(c)(3) rules; abortion providers and organizations paying for or providing abortion coverage are excluded. Gifts cannot name a specific family, and beverage-tax applications also require alcohol-agency approval. Credits earned before a related provision is ruled invalid remain protected, up to $1 per dollar contributed; the law also provides $155,282 for startup administration in 2025–2026.

Leased flight simulators gain government treatment

Starting with the 2026 tax roll, qualifying leased flight simulators count as government-owned for specified property tax rules. Necessary equipment and software receive the same treatment. The simulator must be FAA-qualified, and the equipment must return to the government when the lease ends. The government's governing body must approve the lease in writing.

More counties can fund tourist facilities

Counties can use tourist taxes for public facilities with at least $10 million in prior-year receipts, or if fiscally constrained and coastal. Projects need tourist council recommendations, independent analysis showing a positive tourism-business impact, and approval from two-thirds of the county board. Tourist taxes can pay no more than 70% of project costs; counties must confirm funding for the rest. At least 40% of county tourist tax revenue must still support tourism promotion and advertising.

Production schools receive equipment tax exemptions

Beginning October 1, 2025, qualifying production schools receive sales-tax exemptions for covered purchases or leases of materials and equipment. Items must support teaching, curriculum demonstrations, or school operations. Schools must mainly teach qualified production services, hold a chapter 1005 license, and teach at a fixed Florida location. They must have at least 500 enrolled students. The revised exemption excludes real property, alongside the law's separate repeal of commercial rental tax.

Rural funds can receive revoked credits

Revoked Rural Community Investment Program credits first go proportionally to approved rural funds that received less than requested. Any remaining credits can go to new applicants. Reallocated credits remain subject to the applicable fiscal-year cap.

Tracks gain broader wagering tax eligibility

The 0.5% intertrack-wagering tax rate now uses a thoroughbred permit holder's full racing schedule in the prior fiscal year. That permit holder no longer needs to be conducting a live race meet at the time. The guest track must be outside the host track's market and inside that thoroughbred permit holder's market.

Higher fees for property assessment appeals

A value adjustment board can raise its petition filing fee from a $15 maximum to $50 per parcel. The board must adopt a resolution to charge a fee. Appeals of homestead-exemption or tax-deferral denials remain free, and joint petitions remain capped at $5 per parcel or account. One fee covers a parcel or tangible property account, even with multiple issues or hearings.

Housing charities face new spending safeguards

Charities must spend 100% of Home Away From Home contributions on expanding or building housing for critically ill children's families. They must seek entry into Florida's volunteer and employee criminal-history system. If accepted, they must conduct level 2 screening of staff and volunteers working directly with children in funded programs. Charities must submit independent annual audits and their latest federal Form 990 when required to file one. Health officials monitor eligibility and can require repayment; unresolved loss of eligibility without corrective efforts brings a 10-year funding ban after final agency action.

Thoroughbred breeders lose state funding distribution

The law ends a $5 million statutory distribution to the Florida Thoroughbred Breeders' Association. The money supported purses, breeder and stallion-owner awards, racing incentives, award administration, and industry promotion.

Improper housing exemptions bring repayment penalties

Appraisers can recover wrongly exempted affordable-housing taxes for any year within the immediately preceding 10 years. Recovery includes a 50% penalty on unpaid taxes for each year, plus 15% yearly interest. Penalty and interest do not apply when the improper exemption came from the appraiser's clerical mistake or omission. The taxpayer's Florida property is subject to recovery. The provision has a December 31, 2061, sunset.

Local governments can limit housing exemptions

Starting with the 2025 tax roll, qualifying local taxing authorities can opt out of the specified affordable-housing exemption. The latest Shimberg report must show the county's region has more affordable, available units than renter households in the 0–120% area-median-income group. Adoption requires advance advertising and a two-thirds governing-body vote. The choice applies only to that authority's levies, starts the following January 1, and expires on the second January 1 after taking effect unless renewed. The authority must give the adopted action or renewal to the property appraiser by its effective date.

One scholarship donation credit ends

The law ends this 100% scholarship contribution tax credit, which had a $57.5 million annual limit. Contributions had to be made by July 1, 2025; allocation approvals cannot occur after that date. Credits cannot be approved for fiscal years beginning July 1, 2025, or later, and dealer tax reductions end after October 1, 2025. The section is repealed January 1, 2027, and its contribution route is removed from the scholarship program's eligibility definition. Other listed contribution routes remain; eligible donations must be monetary, go to an eligible nonprofit, and cannot name a specific child.

Rural credit fraud brings double penalties

People who submit fraudulent Rural Community Investment Program information to the Department of Revenue owe investigation and prosecution costs. They also owe a penalty equal to twice the tax credits claimed. These charges apply in addition to other legal penalties.

Export forwarding agents face paperwork changes

Beginning January 1, 2026, forwarding-agent applications need Postal Service proof of any assigned special five-digit ZIP code. Agents already registered as dealers at the designated business location can skip a separate dealer application for certification or renewal. Revenue officials can still review applicants and request information. Certified agents must surrender their certificates within 30 days after closing, changing addresses, shifting their main activity away from exporting others' property, or stopping exports at the certified address.

Shipping businesses face new tax responsibilities

Beginning January 1, 2026, certified forwarding agents must remit tax on covered shipments that stay in Florida untaxed or are delivered in Florida. Agents can collect that tax from customers. The state must list zero rates for certified addresses with a special five-digit ZIP code and no suite or secondary address. Dealers generally cannot collect tax on shipments to listed certified addresses, except when the forwarding agent must remit it. Dealers relying on the listing in good faith are protected from liability; the listing does not erase an agent's separate tax duty.

State affordable housing gets tax relief

Starting with the 2026 tax roll, qualifying affordable housing on Florida-owned property receives a proportional property tax exemption, including residential common areas. Projects must provide more than 70 units serving the specified extremely-low- through moderate-income groups. A recorded lease or use agreement must require affordable housing for at least 60 years. Owners or operators must apply by March 1 annually and meet unit and income requirements each January 1. Improper exemptions trigger tax recovery, a 50% penalty, and 15% annual interest, except for the appraiser's clerical mistakes or omissions.

Airports gain funding with repayment limits

Beginning January 1, 2026, Florida can fund up to 50% of eligible airport project costs not covered federally, when appropriations are available. Initial state funding can reach 75% for qualifying new or expanded public-airport land purchases. The state must be repaid down to its normal share when federal money arrives or within 10 years, whichever comes first. The law also removes this chapter's ban on using aviation fuel tax revenue for space transportation projects. It preserves transportation officials' existing space-project authority without requiring spending.

Florida funds a property tax study

For fiscal year 2025–2026, Florida provides $1 million in one-time General Revenue funding for a property tax study. The Office of Economic and Demographic Research studies the state's property tax structure and local-government spending. This funding does not directly lower homeowners' taxes.

Rural funds face targets and repayment

Rural funds must invest 60% of their authority before the second credit certification date and 100% before the third. At least 70% of eligible investments must remain in rural communities. Businesses generally need fewer than 250 employees and principal operations in Florida and a rural community. Funds can request location waivers for businesses on agricultural land or whose employees mostly live in rural communities; the 70% rural-investment floor remains. Funds must maintain investments until program exit; returned capital generally has a 12-month reinvestment window, with periodic receipts reinvested by the following calendar year's end. Investment shortfalls, prohibited related-party investments, or specified payouts can trigger recapture to General Revenue. Funds receive six months to cure a noticed deficiency and can use that cure only once during the five-year credit period.

Rural funds get faster oversight decisions

Rural funds can request an eligibility opinion before investing; the department must respond within 15 business days. Without a timely letter, the proposed business counts as eligible. Funds can seek release from oversight after the sixth certification anniversary, and the department must decide within 15 days. No revoked credit certificates or uncured revocation notices is sufficient evidence for exit. For state audit rules, funds issuing approved eligible investments count as state-assistance recipients, while entities making or receiving eligible investments are not subrecipients.

Business donation credits carry tax limits

For tax years beginning January 1, 2026, or later, corporations and insurers receive Home Away From Home credits equal to eligible donations made by their return deadlines. Credits apply after other required credits; corporate credits are reduced by any related increase in federal corporate income tax. Corporations approved after timely requesting filing extensions must still pay tentative taxes; nonpayment cancels the credit and can bring taxes, penalties, and interest. Beginning January 1, 2026, covered beverage taxpayers receive dollar-for-dollar credits capped at 90% of tax due, excluding qualifying Florida-grown wine excise taxes. Beverage credits reduce only General Revenue distributions, and insurance credits do not trigger added retaliatory tax.

Corporations use updated federal tax rules

Florida corporate income tax now uses the federal tax code in effect on January 1, 2025, rather than January 1, 2024. The change applies retroactively to January 1, 2025. The provision does not establish a uniform tax cut or increase; each corporation's result depends on the updated federal rules.

Natural gas vehicle taxes start later

The law delays natural-gas motor-fuel tax collection and retailer reporting and payment until January 1, 2030. Per motor-fuel-equivalent gallon, the 2030 excise is 2 cents, plus 0.5 cents each for ninth-cent and local-option taxes; these double in 2031. Additional inflation-adjusted transportation and privilege taxes use bases of 2.9 and 4.6 cents for 2030, rising to 5.8 and 9.2 cents for 2031. Retailers need licenses and monthly reports, with electronic reporting starting February 2030; specified licensed government entities are exempt from retailer reporting. Unlicensed operation costs $200 monthly through 2029, then 25% of tax assessed on purchases during the unlicensed period. Beginning January 1, 2026, the law also repeals former fuel-tax provisions and updates motor-carrier road-tax and fuel-credit references; excess carrier credits carry forward up to eight quarters, with refunds available for credits over $10.

Rural investors gain time-limited tax credits

The Rural Community Investment Program creates credits equal to 25% of certified fund investment authority. Credits are capped at $7 million yearly starting in 2025–2026 and $35 million overall. Investors claim 20% of their credits in each of the first five certification years, with unused credits carried through the 11th certification year. Credits cannot exceed state tax liability, be refunded, or be sold openly; transfers are limited to authorized affiliates and owner allocations. Commerce must certify funds and taxpayer allocations. Applicants need rural-business or small-business investment-company licenses and at least $100 million invested in qualifying nonpublic companies in U.S. counties under 75,000 people. Their plans must project 10-year state revenue gains exceeding total credits. Funds must collect contributions equal to certified authority within 90 days and notify the department within 95 days. New applications close after December 1, 2029, and the program expires December 31, 2040.

Tax distributions face charges, bonds protected

The state deducts a service charge from covered documentary stamp tax collections before distributing them. Specified Land Acquisition Trust Fund distributions are exempt. Pledged bond revenue is protected to the extent needed for bond payments. Collected costs and service charges remain available for debt service and related amounts on bonds authorized before January 1, 2017.

Sponsors & Cosponsors

Sponsor

Wyman Duggan
Republican • House

Cosponsors

Ways & Means Committee
Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 286 • No: 9

House vote • 6/16/2025

House Floor Vote

Yes: 93 • No: 7

Senate vote • 6/16/2025

Senate Floor Vote

Yes: 32 • No: 2

Senate vote • 6/5/2025

Appropriations Vote

Yes: 17 • No: 0