Florida Lawmakers Propose Tax Cuts While Decoupling from Federal Tax Relief

Florida lawmakers are advancing a significant tax proposal, House Bill 7031 (HB 7031), which aims to implement various tax cuts for residents while intentionally decoupling from certain tax relief measures included in President Donald Trump’s One Big Beautiful Bill (OBBB). The bill, introduced on February 24, 2026, is designed to provide targeted tax relief while avoiding the potential financial repercussions of adopting the federal tax changes.

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HB 7031 includes approximately $251 million in tax cuts, focusing on new sales tax exemptions and property tax adjustments. Notable provisions include:

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• Sales Tax Exemptions:

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• Propane tanks (20 pounds or less) will be permanently exempt from sales tax.

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• Home hardening products will be exempt until June 30, 2028.

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• Certain firearm accessories will be exempt until June 30, 2027.

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• A temporary sales tax holiday for hunting, fishing, and camping products from September 1 to December 31.

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• Property Tax Adjustments:

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• A new assessment limitation of no more than 3% per year for mobile home parks with over 75% of lots rented to long-term residents.

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• Exemptions for properties used by non-governmental lessees under projects authorized by Space Florida.

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Florida lawmakers, including House Ways and Means Committee Chair Wyman Duggan, argue that decoupling from the OBBB is necessary to maintain state revenue stability. Duggan noted that implementing all tax cuts from the OBBB could result in an estimated $3.1 billion loss in state revenues. Senate budget chief Ed Hooper echoed this sentiment, stating that the current revenue outlook is declining, making it imprudent to adopt expansive tax cuts at this time.

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Despite the proposed tax cuts, the Florida Chamber of Commerce expressed concerns regarding the bill's implications for businesses. Tax expert French Brown highlighted that the decoupling could impose additional administrative burdens on businesses, which could hinder economic growth. The chamber's apprehension reflects a broader debate on balancing tax relief for residents with the needs of the business community.

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In response to the proposed tax changes, Duggan emphasized the importance of cautious fiscal management, stating, “We do not want to engage in forgoing that kind of recurring revenue until we have a more clear sense of the scope of this year’s budget.” Meanwhile, Hooper remarked, “Every year we try our best to be kind to the job creators and we’ll continue to do so,” indicating a commitment to supporting businesses while navigating fiscal challenges.

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The Florida legislature is set to conclude its regular session on March 13, 2026. Following the House's vote on HB 7031, the bill will require Senate approval and the signature of Governor Ron DeSantis to become law. If successful, the proposed tax changes are scheduled to take effect on July 1, 2026.

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• “The long-range financial outlook is mixed at best and we at this point in the process do not want to engage in forgoing that kind of recurring revenue until we have a more clear sense of the scope of this year’s budget, for example, and some other considerations,” — Wyman Duggan, Chair, House Ways and Means Committee

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• “But this was a lift that seemed in an area where the experts say our revenue is slightly declining […] it’s not the post-COVID years where we were flush,” — Ed Hooper, Senate Budget Chief

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• “This isn’t just about tax relief for corporate taxpayers in 2027.” — French Brown, Tax Expert, Florida Chamber of Commerce

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