FL H7033

General sales and use tax rate reduced from 6% to 5.25%, applying to retail sales, transient rentals, admissions, service warranties, and diesel fuel use tax; commercial real property rental tax reduced from 2.0% to 1.25%; coin-operated amusement machine tax reduced from 4% to 3.25%; new mobile home tax reduced from 3% to 2.25%; electrical power combined tax rate reduced from 6.95% to 6.2%; the Department of Revenue may adopt emergency rules (expiring July 1, 2027) to administer these changes.

Tourist development tax revenues fundamentally restructured: after satisfying pre-July 1, 2025 projects, contracts, and bond obligations, at least 75% of remaining "adjusted collections" must be used to reduce county ad valorem taxes via credits on tax notices beginning with the 2026 tax roll; the remaining 25% may be used for any public purpose; all formerly enumerated authorized uses (convention centers, stadiums, tourism promotion) are eliminated; tourist development councils must dissolve by December 31, 2025.

Compliance and accountability measures added for tourist development tax: local government audits must include a governing board chair affidavit attesting compliance; the Auditor General must contact noncompliant local governments, which have 45 days to initiate and 180 days to complete corrective action; the Legislative Auditing Committee may hold hearings and direct withholding of state funds for noncompliance.

Aviation fuel tax (Part III of chapter 206) repealed effective January 1, 2026; natural gas fuel tax full implementation delayed from January 1, 2027 to January 1, 2030; local discretionary sales surtaxes may now be reduced or repealed by two-thirds vote of the governing board beginning October 1 of the fourth year of levy.

New and expanded property tax exemptions: a new ad valorem exemption created for state-owned property providing more than 70 affordable housing units under leases of at least 60 years (s. 196.19781); the existing affordable housing exemption (s. 196.1978) expanded to include land leased from governmental entities, with local opt-out authority eliminated (existing opt-outs expire by January 1, 2028 at latest); flight simulation training devices on government-leased property deemed government-owned for exemption purposes; all first apply to the 2026 tax roll.

Sales tax exemptions expanded: bottled drinking water exempted effective January 1, 2026; gold, silver, and platinum bullion exempted regardless of transaction amount (removing the prior $500 minimum); forwarding agent certificate provisions updated to streamline export-related tax collection procedures.

Corporate income tax updated: Florida's Internal Revenue Code conformity date moved to January 1, 2025 (retroactive); the definition of "corporation" expanded to include limited liability companies under chapter 605 (except those taxed as partnerships), effective for taxable years beginning on or after January 1, 2026.

Recreational vehicle park special assessments reformed: counties, municipalities, and special districts must assess RV parks as commercial entities rather than as collections of residential units, with assessments limited to the maximum square footage of an RV-type unit and adjusted for occupancy rates; first applies to the 2025 tax roll.

Local communications services tax rate freeze extended to January 1, 2031; cardroom operator tax reduced from 10% to 8% of monthly gross receipts; value adjustment board petition filing fees increased from $15 to $50 per parcel with remote hearing appearances now permitted; enterprise zone multi-phase project completion deadline extended from December 31, 2025 to December 31, 2035.

Thoroughbred breeding fund distributions restructured: the $5 million allocation to the Florida Thoroughbred Breeders' Association eliminated; Florida-bred/sired horse purse supplements increased from $2.5 million to $7.5 million total; Gulfstream Park ($15 million) and Tampa Bay Downs ($5 million) distributions for purses and facility maintenance maintained.