by Jay Waagmeester, Florida Phoenix
April 15, 2025

The Senate is taking a “measured approach” to taxes this session while the Trump administration’s economic policies roil the markets, Finance and Tax Committee chair Sen. Bryan Avila said Tuesday. 

The Senate’s tax proposal, SPB 7034, would ask state economists to study the implications of permanently reducing property taxes, which Sen. Kathleen Passidomo, former Senate president and chair of the Rules Committee, called  the most important part of the proposal.

“The study is going to be more and more critical as time goes on,” Passidomo said.

Senate President Albritton releases $2.1B tax relief bill

The committee reported the bill favorably on Tuesday.

Gov. Ron DeSantis in December proposed $1,000 rebates to each homesteaded property in Florida, totaling $5 billion, and to eliminate property taxes entirely in the future.

Alongside the Senate-proposed study is $2.1 billion in tax relief, including eliminating sales taxes on clothing items valued at less than $75, plus tax holidays, including nearly four months of tax-free purchases of guns, ammunition, and firearm accessories.

“I think it’s exactly the right thing to do, the right approach to tax policy at this point in history,” Sen. Don Gaetz said, adding that he is “disappointed” the tax on business rent is not proposed for elimination.

“I’m old enough to remember actually having been one of the original supporters of reducing the tax on leases. And it’s a tax on tax. It’s an unfair tax. It doesn’t help us. It’s anticompetitive,” Gaetz said.

Avila said the business rent tax would be a topic of conversation as the session moves on. 

“President Albritton has certainly said, you know, that he wants and he’s committed to lessening the financial burden, not just on the residents of our state, not just on our farmers, but also on our businesses. And so, I think that that’s obviously going to be a topic of conversation,” Avila said. 

A 0.1% reduction in the business rent tax would equal about $50 million in lost revenue, Avila said.

Lawmakers last year approved reducing the state business rent tax from 4.5% to 2% effective July 1, 2024.

DeSantis called for eliminating that levy and the House is proposing reducing it by 0.75%.

Tariffs and related initiatives from the White House convulsed the stock and bond markets last week.

“Without question, there’s certainly a lot of concern, particularly in the market,” Avila said. “We need to correct those things in order to move forward, certainly as it relates to trade and the tariff discussion.”

Avila promised that state policy and budget decisions will have “more clarity as it relates to the federal picture” by the time the budget is voted on, including consideration of consumer sentiment and earnings reports for private companies.

The end date for the regular session is May 2.

Tax holidays

Other tax holidays in the Senate bill include a weeklong back-to-school holiday, two-week disaster preparedness holiday, week-long tool and safety equipment holiday, and month-long outdoor supplies holiday. 

The House proposed a $5 billion cut by permanently reducing the sales tax and business rent tax by 0.75%. Speaker Daniel Perez has criticized sales tax holidays, although they remain a focal point of the Senate proposal. 

The House and Senate may be further apart than typical, and Avila acknowledged conversations will need to be had.

“The expectation shouldn’t be that we’re going to agree 100% on everything, because quite frankly we don’t even agree 100% with our spouses on what we’re going to have for dinner or a plan for Friday night,” Avila told reporters Tuesday. 

Several students and Sen. Mack Bernard, a Democrat from West Palm Beach, spoke in opposition to the gun and ammunition holiday, saying it would encourage people to buy guns. 

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