Governor Ron DeSantis signed a bill that enacts a USD 1.3 billion tax relief package that updates Florida’s tax code conformity to January 2025 and repeals the business rent tax from October 2025.
Florida Governor Ron DeSantis signed House Bill (HB) 7031 on 30 June 2025, enacting a USD 1.3 billion tax relief package.
Key measures include:
- Tax code conformity: HB 7031 updates Florida’s conformity to the Internal Revenue Code (IRC) from 1 January 2024 to 1 January 2025.
- Business rent tax repeal: The state will eliminate its unique business rent tax starting 1 October 2025. Since 1969, Florida has been the only U.S. state to impose a business rent tax, a sales tax on payments businesses make to lease or license commercial real estate, including tenant-paid pass-through costs.
- Permanent sales tax holidays:
- August: HB 7031 offers a tax-free month for clothing, shoes, backpacks, classroom supplies, and personal computers in August, excluding purchases made at theme parks and entertainment complexes.
- Disaster preparedness: Permanent tax exemptions for batteries, fuel tanks, generators, tarps, and tie-downs.
- Safety Items: Fire extinguishers, smoke and carbon monoxide detectors, sunscreen, insect repellent, life jackets, and bicycle helmets are now tax-free.
These changes aim to provide permanent tax savings for families and seniors.
