TALLAHASSEE, Fla. — House Speaker Danny Perez will need to persuade two of Florida’s top Republicans — Gov. Ron DeSantis and Senate President Ben Albritton — if he wants to make a historic cut to Florida’s sales tax.
The pair did not directly address Thursday whether they support slashing the state’s sales tax from 6% down to 5.25%. Instead, DeSantis’ staff pointed to a video promoting a cut to property tax.
“We need a Florida-first tax package that will reduce the number one tax that is hurting Floridians, which is property tax,” said DeSantis.
Meanwhile, Albritton, the top Republican in the Florida Senate, described himself as “open-minded” on Thursday in the Florida Capitol.
“Everybody knows right now we have an affordability challenge with many families in Florida,” said Albritton. “We’re reviewing what the proposal looks like and we’ll see where it goes, but to be clear, we are supportive of lower taxes in Florida.”
A Miami Republican, Perez announced the plan Thursday, calling it the largest tax cut in Florida history. Moreover, the first of its kind in U.S. history.
“This will not be a temporary measure, a stunt or a tax holiday,” said Perez. “This will be a permanent recurring tax reduction.”
Sales tax applies to a variety of items in Florida. Think goods and services, like the purchase of jeans, a car, or furniture. It’s the state government’s largest revenue stream, according to Florida TaxWatch, and funds nearly 75% of the state’s General Revenue Fund. Florida lawmakers use the GR fund to float things like public safety, education and social services.
“If we’re ambitious, it’s something that’s manageable,” said Florida State University Economic Professor Dr. Randall Holcombe, who noted the cut would amount to roughly 5% of the state’s overall budget.
The Florida House estimates the cut could save Floridians roughly $5 billion in sales tax a year. Meanwhile, Florida is home to at least 4 tax holidays with more proposed in the 2025 Legislative Session.
“We’re better off cutting the rate overall for all sales than we are having all these sales tax holidays,” added Holcombe.
The proposal comes as Florida lawmakers spearhead an effort to reduce government spending and waste — an endeavor they’re promoting as Florida DOGE (Department of Government Efficiency). It also comes as Florida Republicans contemplate ending property tax, too. Florida would become the first state in the nation to do so if successful.
Some see the plans to cut property tax and sales tax as a potential conflict.
“I’m certainly not looking for conflict,” Albritton said. “I’m looking for the best policy for Floridians.”
Unlike sales tax, property tax primarily funds local governments and local services. Orange and Hillsborough County residents paid on average roughly $2,800 in property taxes in 2023, according to the Tax Foundation.
Lawmakers in the 2025 Legislative Session have filed several bills providing insurance and tax relief to consumers. One would provide relief to homeowners who storm harden their homes. Another would require insurers to provide regulators and policyholders more information about fees and costs.
“Floridians are asking for property tax relief,” wrote Spring Hill Republican State Sen. Blaise Ingoglia on X. “We should deliver it. I’m ‘all-in’ for a ‘Florida-First’ property tax relief package.”
Property tax and insurance, meanwhile, are major contributors to Florida’s rising cost of living. Property values are up too. According to real estate firm RedFin, median home sale prices have almost doubled in Florida in five years, from around $253,000 to $412,000.
The Florida House intends to publish the sales tax bill next week. Florida’s 60-day legislative session ends May 4. The Florida House and Senate, plus Gov. Ron DeSantis, have until then to reach an agreement on sales tax, property insurance and more.
