Florida Governor Ron DeSantis has signed House Bill 7031 into law, delivering $1.3 billion in permanent tax savings to families and businesses across the state. The comprehensive legislation eliminates several taxes and creates new tax holidays to help Floridians cope with inflation and keep the state competitive for business.
Key Takeaways
Business Rent Tax Elimination: Florida repeals its commercial rent tax, effective October 1, 2025. This tax, which has been in place since 1969, was unique to Florida and charged businesses sales tax on their commercial lease payments. The gradual reduction from 6% to 2% over recent years culminates in full elimination, removing a significant burden on Florida businesses.
Permanent Back-to-School Tax Holiday: August becomes a permanent tax-free month for essential school items including clothing, shoes, backpacks, school supplies, and personal computers under specified dollar thresholds.
Year-Round Disaster Preparedness Savings: Sales tax is permanently removed on critical hurricane and disaster preparedness items such as batteries, fuel tanks, portable generators, tarps, and ground anchors—helping families stay prepared year-round.
Health and Safety Tax Relief: Permanent elimination of sales tax on fire extinguishers, smoke detectors, carbon monoxide detectors, sunscreen, insect repellent, life jackets, and bicycle helmets.
New Hunting and Fishing Holiday: A new sales tax holiday from September 8 through December 31, 2025, covers camping, fishing, and hunting supplies.
Additional Benefits: The legislation also eradicates sales tax on Florida State Park admissions, small-denomination precious metals purchases, and extends the freeze on local cell phone and TV taxes through 2031.
Bottom Line
This legislation represents Florida’s commitment to keeping the state affordable for families and competitive for businesses. By eliminating the unique business rent tax and providing broad-based relief on essentials, Florida continues its trend of reducing the tax burden. The permanent nature of most provisions provides predictable savings that families and businesses can count on for years to come.
We encourage you to learn more about the tax relief package using this link. Taxpayers should reevaluate any existing agreements with commercial rent taxes. If you have questions about how these tax changes may impact your business or personal financial situation, please reach out to your Ennis Pellum advisor. We’re here to help you understand and maximize these new opportunities for tax savings.