News Summary
Florida lawmakers have finalized the 2025 state budget, introducing permanent sales tax exemptions and significant tax cuts. Notable changes include exemptions for hurricane preparedness items, a back-to-school sales tax holiday, and a new tax holiday for hunting, fishing, and camping supplies. The budget also reduces the business rent tax, aiming to support both businesses and consumers in the state. While some proposed tax holidays were excluded, discussions for further tax reductions are ongoing, showcasing a commitment to reshaping Florida’s tax structure for economic stability.
Florida lawmakers finalized the state budget for 2025 last month, introducing several permanent sales tax exemptions and cutting over $2 billion from the tax system. This budget took effect on July 1, 2025, marking a significant shift in the state’s financial landscape.
Among the most notable changes is the permanent sales tax exemption for items related to hurricane preparation and outdoor activities, set to begin on August 1, 2025. This includes essential items like batteries, smoke detectors, fire extinguishers, and generators, which are vital during the hurricane season. Consumers can expect these changes to conserve approximately $148.9 million annually.
Additionally, the budget includes a permanent back-to-school sales tax holiday each August, expected to save families around $217 million per year. This exemption applies to various items, such as clothing priced under $100, school supplies under $50, and computers costing less than $1,500.
To further support outdoor enthusiasts, a new “Hunting, Fishing, and Camping” sales tax holiday will take place from September 8 to December 31, 2025. This holiday will provide tax exemptions on numerous products associated with these activities. However, it will also result in a revenue loss of approximately $44.8 million for state and local governments during this period.
The budget notably includes a reduction in the business rent tax, which has been cut from 5% to 2% in recent years. The elimination of this tax accounts for about 75% of the total tax reductions, saving businesses and local governments an estimated total of $700 million. While Governor Ron DeSantis acknowledged that this benefit mainly aids businesses, consumers will also enjoy the positive impacts of these tax cuts.
In addition to these highlighted measures, other items receiving permanent sales tax exemptions include sunscreen, insect repellent, bicycle helmets, and admission fees to state parks, leading to further consumer savings of approximately $15.4 million annually. Moreover, gold, silver, and platinum bullion sales under $500 will now be tax-exempt without the previous threshold, projected to save investors around $2.2 million each year.
There were, however, no “disaster relief” or “freedom summer” tax holidays included in this year’s budget—a notable absence considering past practices. Nonetheless, lawmakers are actively engaged in ongoing discussions regarding further tax reductions and holiday proposals. Some of the proposed measures include a “Second Amendment Summer” sales tax holiday, which would apply to firearms and related items from Memorial Day to the Fourth of July. Another consideration is a “Marine Fuel” tax holiday aimed at reducing motor fuel taxes.
In total, the current tax cuts are noteworthy for the scale of the financial relief afforded to Florida residents and businesses alike. The 2025 budget reflects a significant commitment by lawmakers to reshape the tax structure in a manner that supports growth and economic stability in the state.
As the budget continues to roll out, the implications for businesses and consumers will become clearer, particularly with new tax holidays and permanent exemptions designed to assist Floridians in various facets of life—from education and outdoor recreation to emergency preparedness.
Deeper Dive: News & Info About This Topic
- Click Orlando: No More Florida Sales Tax on These Items
- Wikipedia: Florida
- Tallahassee.com: Desantis Tax Cut Bill
- Google Search: Florida Tax Cut 2025
- Action News Jax: Florida’s Hurricane Tax Holiday Delayed
- Google Scholar: Florida Hurricane Tax Holiday 2025
- NBC Miami: Second Amendment Summer Tax Holiday
- Encyclopedia Britannica: Florida Tax Holidays
- Palm Beach Post: Florida Disaster Preparedness Tax Holiday
- Google News: Florida Disaster Preparedness Tax Holiday
