Tax Package – In Week 7, the Senate Finance & Tax Committee and the House Ways & Means Committee approved their tax packages. As expected, they provide far less tax relief than in recent sessions. SB 7046 contains only one significant tax cut (in terms or taxpayer savings)–a hunting, fishing, and camping sales tax holiday from September 7, 2026, through December 31, 2026. Shoppers can save $34.1 million during the holiday. HB 7031 offers $250 million in tax relief (if you don’t double count recurring impacts). Most of the tax relief is non-recurring. It also contains the outdoors tax holiday, along with other sales tax exemptions, tax credits, and more. There is even a one-year reduction in the tax on domestic beer. See all the provisions of HB 7031. Both bills contain numerous other provisions, including relatively small changes to the property tax. In Week 8, the Senate Appropriations Committee adopted a delete-all amendment that added some provisions to SB 7046. See all the provisions in SB 7046 (with amendment). The Senate substituted the House tax package (HB 7031) for its piggyback bill (SB 7048). The Senate adopted an amendment that deleted all the House tax package language and replaced it with only the piggyback language. They sent it back to the House. This week, the Senate took up its tax package (SB 7046) and substituted HB 1217, which has no tax provisions and instead prohibits governmental entities from adopting net zero greenhouse gas policies or using public funds to support them. Technically, this means that there is not a House or Senate tax package, as neither SB 7046 nor HB 7031 contain any tax relief provisions. We will see what the plan is, but hopefully it will be worked out in conference.
LEGISLATION THAT PASSED
Corporate Income Tax Piggyback – One thing that the House and Senate agree on is that the many federal corporate income tax cuts in the One Big, Beautiful Bill Act (OBBBA) will not extend to Florida companies’ state tax returns. The House piggyback provisions were in their tax package (HB 7031). The Senate had a separate piggyback bill (SB 7048). The bills were approved in House Ways & Means and Senate Finance and Tax in Week 7. Each year, the Legislature passes a CIT “piggyback” bill to adopt the latest federal tax code, conforming Florida law to federal law. Federal taxable income is the starting point for Florida corporations to calculate their state tax liability. This makes it easier for both the taxpayer and the taxman. Sometimes, the bill will “decouple” with specific federal changes that would have a large impact on state revenue. The federal One Big Beautiful Bill Act (OBBBA), passed into law in July 2025, contains several provisions that reduce corporate income taxes. These include making 100 percent bonus depreciation permanent, allowing immediate expensing of research and development costs, and providing a more generous limitation for interest deductions. Adopting all of the changes this year would cost Florida $3.5 billion. Instead, both the House (HB 7031) and the Senate (SB 7048) are proposing to decouple from everything, but the Senate was going to let taxpayers spread the benefit of some provisions over seven years. The Senate passed a delete-all amendment to the House tax package (HB 7031), replacing its language with only the piggyback language. The House and Senate were aligned, meaning a total decoupling from all provisions and Florida companies will receive no state level benefit from the OBBBA. The House accepted the Senate amendment and passed HB 7031, keeping this issue out of conference.
Special Assessments on RV Parks – SB 118 prohibits levying a non-ad valorem special assessment at a recreational vehicle (RV) park levy against the portion of each parking space or campsite that exceeds the maximum square footage of specified RV-type units. Local governments levying the assessment must consider the occupancy rates of the RV park to ensure fair and reasonable apportionment of the special assessment among the RV spaces receiving the special benefit. The House amended the Senate bill with language that was identical to the original Senate bill. The Senate concurred.
STILL ALIVE IN CONFERENCE?
The Legislature’s plan for a tax relief package is unclear (see above). But even though the following bills died, these provisions were in either the original House or Senate budget. If a tax package is debated in the special session, these tax changes still have a chance.
Tax Credits for Contributions to Assist Homebuyers – SB 1672 and HB 311 would create a new tax credit for employers who contribute to their employees’ homebuying expenses. The bills allow a 100% tax credit against corporate income or insurance premium taxes for employer contributions to down payment or closing costs, capped at $5,000 per employee. SB 1672 also allows credits for contributions to state-approved down payment programs. HB 311 made it to second reading. In addition, the new House tax package (HB 7031) also contained the exemption.
Home Hardening Sales Tax Exemption – HB 185 provides for a refund of sales and use tax paid for “home hardening products”—defined as impact-resistant doors, garage doors, and windows. Only homestead residential properties with a maximum value of $700,000 are eligible. SB 78 limits the refund to $500, and it would only in effect on purchases made from July 1, 2026, through June 30, 2028. HB 185 passed all its committees, and the House tax package (HB 7031) also contained the exemption. Another bill (SB 434) that would provide a property tax exemption for wind resistance improvements passed the Senate. (see Property Tax section).
Space Florida Tax Exemptions – HB 1177 originally proposed creating a sales tax exemption for tangible personal property, including machinery and equipment, that is leased by Space Florida to private entities. The bill also included defense or aerospace use under the definition of “governmental purpose” for property tax exemptions, covering private lessees operating through Space Florida. In Week 6, the sales and property tax exemptions were amended out, and other provisions were added (see Economic Development section). However, the House tax package (HB 7031) included the tax exemptions for Space Florida. Florida TaxWatch released a report detailing how under Space Florida’s leadership, Florida’s Space Coast has transitioned from a government complex to a vibrant commercial, market driven enterprise that can also support federal government missions. The report concludes that Florida’s Space Coast is well-positioned to dominate the future of the aerospace industry.
Taxation of Electronic Vehicle Charging Stations – SB 680 would exempt the sale of electricity from a utility to an electric vehicle charging from both sales tax and gross receipts tax, including electricity used for supporting equipment and infrastructure. The sale of electricity from an electric vehicle charging station to an electric vehicle consumer remains taxable under the bill. SB 680 died in the Appropriations Committee, but a similar provision regarding charging station taxes was in the original Senate tax package. See this Florida TaxWatch report on the growing impact of electric vehicles on Florida’s transportation funding model.
LEGISLATION THAT DID NOT PASS
Local Business Tax Repeal – HB 103 and SB 122 would repeal the authority for cities counties to levy local business taxes, which is a tax on the privilege of operating a business in a government’s jurisdiction. These taxes currently provide $189 million annually to local governments. Both bills would allow local governments that continue to levy a business tax on gross receipts to continue doing so. Only Panama City and Panama City Beach have such a tax. HB 103 was approved by the full House in Week 6. SB 122 has passed one committee.
Research & Development Tax Credit – HB 847 and SB 1076 would have increased the cap on the total annual amount of Research and Development Tax Credits from $9 million to $50 million. Florida TaxWatch has long supported increasing the cap. There have been some past increases, but they have only been temporary. Similar legislation last session cleared a committee but then stalled. This session, SB 1076 was approved by the Commerce and Tourism Committee. Florida TaxWatch recommends this be added to the final tax package.
Sales Tax Exemption for Vertiports – HB 1093 promotes advanced air mobility–aircraft that are highly automated, electrically powered, and have vertical take-off and landing capability. HB 1093 and SB 1362 originally provided a sales tax exemption for the aircraft, batteries, training devices, and electricity used for training. Both bills were pared down considerably, including removing the exemption. HB 1093, with provisions to promote vertiports, but with no tax exemption, did pass (see Transportation section). The exemption was also not in either chamber’s tax package.
Food Wholesalers M&E Sales Tax Exemption – HB 723, the House rural development bill (see Economic Development section) contains a sales tax exemption for industrial machinery and equipment used by food wholesalers in fiscally constrained counties. This bill was not heard and the House did not take up the Senate rural development bill.
Heated Tobacco Products – SB 754 and HB 377 would exempt these products from tobacco taxes. This type of tobacco, used with an electronic device, does not burn or combust, so it does not produce smoke. While it produces fewer toxins, it is not without its own health concerns. HB 377 passed one committee, SB 754 cleared one.
Tourist Development Taxes – Florida TaxWatch has warned of the “slippery slope” created when the Legislature adds additional authorized uses for this local sales tax surcharge revenue, diverting revenue from its original intended purpose—tourism promotion. Several recent sessions have resulted in expanding the uses of TDT revenue, including last year’s legislation that allows all coastal counties to use them for beach lifeguards and fiscally constrained coastal counties to use them for capital improvements to public buildings. This session, bills have been filed to reduce the percentage of TDT revenue required to be spent on tourism promotion from 40 percent to 20 percent (SB 458), eliminate any required promotion spending (SB 454/HB 6007), and add public safety and affordable/workforce housing (SB 456)and commuter rail (SB 976) to the allowable uses. Florida TaxWatch has historically supported using TDTs for tourism promotion and our research has shown that elimination of funding for promotion will hurt tourism and therefore the economy. None of these bills were heard in committee.
