The Center Square) – Florida Gov. Ron DeSantis signed Florida’s $115.1 billion budget and a tax relief package worth $1.3 billion in tax relief in a ceremony in Wildwood on Monday.
The second-term Republican governor put his signature on the budget which he says includes about $590 million in line-item vetoes.
“I think signing the budget underscores the fact that Florida is the best-managed state in these United States,” DeSantis said. “So going into this legislative session, our current fiscal year, which ends tonight, we are actually spending less this year than we were the previous fiscal year. How many places are spending less year over year? Not a lot.”
DeSantis said his priority is shifting to property tax reform and he urged Florida voters to hold their local leaders and lawmakers accountable as he seeks to have a ballot initiative on the November 2026 ballot to lower property taxes.
The $115.1 billion budget passed by lawmakers just weeks before Tuesday’s deadline is $3.5 billion less this year’s outlay of $118.6 billion, a 3.2% cut. GOP legislative leaders needed 106 days, nearly double the normal 60-day legislative session, to find an accord on the state’s budget.
Also included is $1.3 billion in tax relief and $830 million to pay off the state’s debt into the budget.
The package includes the phaseout of the state’s business rent tax, with Florida being the only state to mandate such a levy.
“The Legislature has also done something that I’ve been asking for for many years, and that’s eliminating a tax that only Florida has of all 50 states, and that’s taxing business rent,” DeSantis said. “Not good for our economy. It’s not good for for business growth and so that tax is being sunsetted. And again, how many times do you hear governments eliminating a tax like normally, these taxes grow. So thanks for doing that. I think that that’s well intended.”
The amount of tax relief, $1.3 billion, is smaller than what was sought originally by House Speaker Daniel Perez, R-Miami, but is the largest recurring one in state history.
“Governor DeSantis and the Florida Legislature are running to the fight for meaningful, broad-based tax relief to keep more money in the pockets of the hard-working Floridians and local businesses who earn it,” said outgoing Senate President Ben Albritton, R-Wauchula. “Inflation has led to significant cost increases, impacting families and seniors. Cutting taxes on essentials helps keep Florida affordable. We know our current sales tax holidays are popular and highly utilized as families and seniors map out and plan for specific purchases.
“Creating a permanent tax holiday every August on clothing, shoes, school supplies, and personal computers expands our current holiday and creates a consistency that benefits both consumers and retailers.”
August will have a permanent sales tax holiday for school supplies and another one in the fall for fishing and hunting supplies. Lawmakers also removed sales tax from disaster preparedness supplies.
Previously, those sales holidays were done by lawmakers from year to year.
The tax relief bill also allows local governments to reduce or repeal certain discretionary sales surtaxes with a two-thirds vote.
