Florida Legislative Session Update
Week 3 - January 26-30
The Florida Legislature began Week 3 knowing there is more general revenue available for the new budget than previously thought. The good news was courtesy of the new General Revenue Estimating Conference forecast, which shows that the estimates for the two biggest GR sources—the sales tax (increase) and corporate income tax (decrease)—offset each other. Most of the other sources had modest estimate increases, resulting in an additional $572.5 million. While the budget writers will certainly take it, it is only one percent of total GR collections for the upcoming budget year and not enough to stave off forecasted future budget shortfalls without some recurring budget reductions by the 2026 Legislature. Lawmakers now know how much money they have to deal with, and we should be seeing the budget subcommittee recommendations in the coming weeks.
Also this week, the House sent a third property tax constitutional amendment to the floor. HJR 213 would change the current annual Save Our Homes cap on assessments to three percent once every three years. It would also change the 10 percent annual non-homestead cap to 15 percent every three years. The recent Florida TaxWatch property tax report points out that this is the only one of the House proposals that would help non-homestead property and reduce the current tax burden shift from homestead to non-homestead property.
In addition to bills advancing with goals of reducing prescription drug costs, creating an exemption for parents who don’t want their school children vaccinated, and an exemption from the state minimum wage for workers classified as trainees, there were several bills supported by Florida TaxWatch research that received favorable committee votes.
Space Florida — SB 1512
SB 1512 passed its first committee this week. It creates a sales tax exemption for tangible personal property, including machinery and equipment, that is leased by Space Florida to private entities. It also will provide more flexibility in the procurement of professional and construction services. This week, Florida TaxWatch released a report detailing how under Space Florida’s leadership, Florida’s Space Coast is well-positioned to dominate the future of the aerospace industry. The legislation can help in this effort.
Advanced Wastewater Treatment — SB 1468
SB 1468 advances the goals of the Florida TaxWatch recommended water project work program. It requires a comprehensive list of wastewater treatment facilities, with the information needed to develop priority rankings to guide the funding decisions of the Legislature. Senate sponsor Lori Berman stated we must make sure “we are spending taxpayer dollars wisely and putting the most in need projects at the top of the list when it comes to state funding.” Florida TaxWatch could not agree more.
Nature-Based Methods for Improving Coastal Resilience — HB 1035 / SB 302
HB 1035 promotes the use of green infrastructure and nature-based solutions to resiliency, such as living seawalls, wave attenuation devices, and green stormwater infrastructure, as well as enhancing natural systems like mangroves, salt marshes, seagrasses, and oyster reefs. Florida TaxWatch has issued two reports on nature-based resiliency, citing its benefits and potential for cost savings, and highlighting a success story in Jacksonville. Both HB 1035 and SB 302 are moving through the committee process.
Disclosure of Estimated Taxes — HB 827 / SB 856
HB 827 and SB 856 would require online property listings to include estimated ad valorem taxes, rather than displaying the current owner’s taxes, to give prospective buyers a more accurate picture of future tax liabilities. This change is overdue. Both bills cleared committee this week.
Assessment of Wind Resistance Improvements — SB 434
SB 434 would prohibit increasing the assessed value of residential property based on improvements made to enhance wind resistance. It passed Finance & Tax this week.
Alzheimer’s Disease Awareness Program — SB 578
SB 578 would create the Alzheimer’s Disease Awareness Program to assist Floridians affected by Alzheimer’s disease and dementia-related disorders with obtaining reputable national research. Other components include health care provider education, public event advertising, and a statewide mobile in-person outreach program that prioritizes underserved communities. Florida TaxWatch has long supported Alzheimer’s disease research and awareness as a worthwhile effort to improve lives with a high return on investment for Florida. SB 578 now goes to the floor.
Accessory Dwelling Units (ADUs) — SB 48
SB 48 would require local governments to allow ADUs, sometimes known as accessory apartments or granny flats, in single-family residential areas. OPPAGA is required to produce a study of mezzanine financing and tiny homes for potential inclusion in affordable housing solutions. SB 48 cleared its last committee.
Tax Credits for Contributions to Assist Homebuyers — SB 1672
SB 1672 would create a new tax credit for employers who contribute to their employees’ homebuying expenses or to state-approved down payment programs. The bill was approved in Commerce and Tourism.
Property Insurance Affiliates — HB 1399
HB 1399 creates new oversight requirements for property insurers’ transactions with affiliates, including mandatory registration for affiliates and consideration of affiliate revenue in rate filings. There have been claims that some insurers in Florida shifted billions to affiliates while claiming storm-related losses. HB 1399 is now headed for a floor vote.
To keep up with the session and get more information on these bills and other legislation, visit the Florida TaxWatch Legislative Update page.
