Florida Needs to Balance the Scales If It Wants to Cut Taxes

The op-ed below appeared in Bloomberg Tax on May 2, 2025.

Throughout Florida Gov. Ron DeSantis’ (R) tenure, policymakers have opted for Band-Aid solutions such as sales tax holidays while permanently collecting more sales taxes on online purchases to lower taxes for businesses.

This makes current legislative proposals to lower the state’s general sales tax a significant policy shift that—if adopted equitably alongside a revenue option—would offer relief. However, there are issues that policymakers ought to consider to ensure that permanent tax changes benefit those who need it the most.

The Florida House of Representatives’ omnibus tax bill, HB 7033, proposes a 0.75 percentage-point reduction to the state’s 6% general sales tax that intends to offer about $5 billion in annual savings to consumers. The Senate’s tax package also includes a permanent sales tax exemption on clothing and shoes with a sales price of $75 or less per item, which state economists estimate could save consumers $963 million to $1.1 billion annually.

DeSantis has urged legislators to focus on property tax relief by offering $1,000 rebates to homeowners of homesteaded properties as part of his “long-term goal of eliminating property taxes through a constitutional amendment.” Like the House’s plan, DeSantis’ rebate proposal would provide $5 billion in relief.

Read full op-ed on bloombergtax.com.

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