(The Center Square) – Florida House Speaker Daniel Perez wants to cut the state’s sales tax rate, saying it would be the largest cut in the state’s history.
The Miami Republican proposed cutting the state sales tax rate from 6% to 5.25%, which when combined with local sales tax (maximum of 1%) would give the Sunshine State the lowest combined sales tax levy in the Southeast by an even wider margin.
“We cannot spend our way out of a spending problem,” Perez said in a Wednesday speech on the House floor. “We must remove the temptation to spend. This will not be a temporary measure; a stunt or a tax holiday. This will be a permanent, recurring tax reduction. This will be the largest state tax cut in the history of Florida.
“If we are successful, we will become the only state in the history of the United States of America to permanently reduce its sales tax.”
He received a standing ovation from the Republican members of the House, where the GOP has a supermajority.
According to the nonpartisan Tax Foundation, Florida’s state sales tax rate is tied for 17th highest nationally with West Virginia, Vermont, South Carolina, Pennsylvania, Michigan, Maryland, Kentucky, Iowa and Idaho.
If the bill is signed into law by Gov. Ron DeSantis, that ranking would plunge to 32nd highest between Virginia (5.3% state sales tax rate), and Wisconsin and North Dakota (5%).
Where that would help Florida be more competitive is in combined sales tax rate. Florida municipalities and counties can only levy a maximum of 1.002% in local sales tax, whereas other Southern states have far higher maximums.
If the new rate becomes law, Florida’s combined average sales tax rate will be 6.25%, much less than Georgia (7.38% rate, 19th highest), South Carolina (7.5%, 18th highest), Mississippi (7.06%, 22nd highest), Alabama (9.29%, 5th highest), Tennessee (9.55%, 2nd highest) and Louisiana (9.56%, highest).
“We often talk about how to improve affordability in Florida, and our strategies usually involve spending money on more government programs,” Perez said. “But this year, we’ll try a novel concept – and make Florida more affordable by giving the people of Florida their own money back to them.”
