Introduction to Sales Tax Cuts
Financial relief could be on the way for millions of Floridians and state visitors by way of a sales tax cut.
Florida House Speaker Danny Perez announced that as part of his proposed budget, the legislature would cut the sales tax by 0.75%, from 6% to 5.25%.
“Our greatest priority of the House is to make sure that Florida becomes more affordable,” Perez told NBC6.
While the cut may seem minor, Perez said it is $5 billion in savings for the Florida taxpayer.
Current Sales Tax Rates
Because of added tax mandates, residents and visitors in Miami-Dade and Broward pay 7%, while in Monroe County, the sales tax is 7.5%.
The legislature controls the majority of the current state sales tax, and the speaker said they’re looking to cut unnecessary spending.
“Where is the fat? Go cut the fat and make sure that we move forward with the savings for the people. Make sure that we get the taxes back to the people,” Perez said.
Impact on State Budget and Services
When asked how Perez addressed how this sales tax cut could affect the state budget and services Floridians rely on, the speaker said it will not.
In fact, he points out his budget proposal has more education funding than previous budgets.
“This budget has the highest budget for K-12 education in the history of the state of Florida. We increased funding per student. We increased funding for veteran teachers,” he said.
But Perez added the budget would cut vacancies, specifically any open job state agencies have not been able to fill more than 90 days.
Competing Proposals for Relief
Perez’s proposal is naturally now competing with the governor’s own to provide Floridians relief – cutting property taxes.
“We are going to be working on providing relief from the property tax situation,” Gov. Ron DeSantis said in a posting on X.
On property taxes, the governor has publicly said taxpayers are in a pinch, paying more than they ever have.
“At what point is your property yours and if they’re going to keep taxing you then you’re basically just saying rent to the government,” DeSantis said.
Property Tax Changes
Property taxes can only be changed at the local level, but the governor thinks there could be some state constitutional changes by way of the ballot that could make a difference in people’s lives.
Perez said DeSantis has yet to submit a proposal.
“There’s K-12 that gets funded through property taxes, police, fire. There are significant services that come out of property taxes, but if there’s a proposal that works, we got to put it on the ballot. And the people have to choose," he said.
Next Steps
The 60-day legislative session is about halfway done and the sales tax cut proposal will now have to be reviewed in the Senate.
The new state budget will take effect July 1.
Conclusion
The proposed sales tax cut by the Florida House Speaker aims to provide financial relief to Floridians and state visitors. While the cut may seem minor, it translates to $5 billion in savings for the Florida taxpayer. The proposal is currently competing with the governor’s plan to cut property taxes, and it remains to be seen which proposal will be implemented. The fate of the sales tax cut proposal will be decided in the Senate, and the new state budget will take effect on July 1.
FAQs
Q: How much will the sales tax be cut?
A: The sales tax will be cut by 0.75%, from 6% to 5.25%.
Q: How much will Floridians save from the sales tax cut?
A: Floridians will save $5 billion.
Q: What is the governor’s proposal for relief?
A: The governor proposes cutting property taxes.
Q: When will the new state budget take effect?
A: The new state budget will take effect on July 1.
