House Speaker Daniel Perez said Wednesday he wants to lower the state’s sales-tax rate, trimming revenue by almost $5 billion a year.
Perez, R-Miami, told House members he has directed Ways & Means Chairman Wyman Duggan, R-Jacksonville, to produce a bill next week that would lower the rate from 6 percent to 5.25 percent.
“This will not be a temporary measure; a stunt or a tax holiday. This will be a permanent, recurring tax reduction,” Perez said.
Since taking their powerful positions in November, Perez and Senate President Ben Albritton, R-Wauchula, have warned lawmakers about a need to slow spending. At least in part, that is because federal money that flooded into the state during the COVID-19 pandemic has dried up.
Perez said the sales-tax proposal is tied to efforts to reduce state agency spending.
“We cannot spend our way out of a spending problem. We must remove the temptation to spend,” Perez said.
House and Senate budget panels this week have released initial spending proposals for the 2025-2026 fiscal year, which will start July 1. The House and Senate ultimately will have to negotiate a final budget in the coming weeks.
Albritton spokesman Katie Betta said in an email Wednesday that the two leaders have shared views on the budget, including concerns about spending on recurring programs, and that the president looks forward to reviewing the House proposal.
“The Senate budget prioritizes broad-based tax relief, debt repayment and reserves, while reducing per-capita spending,” Betta said. “The president has tremendous respect for the speaker and looks forward to partnering with the House on a significant, broad-based tax relief package to make sure Florida families can keep more of the money they earn.”
Without a state income tax, Florida relies heavily on sales taxes to fund programs such as schools, health care and prisons. While the state has a 6 percent rate, many counties have higher rates through what is known as a “discretionary” sales tax.
Perez’s comments Wednesday came after Gov. Ron DeSantis and many lawmakers have called during this year’s legislative session for reducing — or possibly even eliminating — property taxes. Critics of such property-tax ideas have said they could force increasing sales taxes to make up the lost revenue.
In a budget proposal released Feb. 3, DeSantis called for $2.2 billion in tax cuts that mostly would come through the elimination over two years of a tax that businesses pay on commercial leases, a move long sought by business groups. He’s also called for a return of sales tax “holidays” on school supplies, recreational items, hurricane supplies, and for ammunition and firearms.
As part of budget negotiations, the House and Senate are expected to reach a deal on a tax-cut package.
Perez gave a brief overview Wednesday of the House budget proposal, which he said will be lower than the $116.5 billion budget in the current fiscal year and DeSantis’ proposed $115.6 billion budget for the 2025-2026 fiscal year.
“For the first time since the Great Recession, we will roll out a budget that actually spends less money than we did in the prior fiscal year,” Perez said. “Of course, the special interests will say the sky is falling and the world is ending. But it won’t, and it’s not. They have lost sight of the difference between our state’s needs and their wants.”
After Perez announced his sales-tax proposal, the House unanimously voted to override four of DeSantis’ budget vetoes from the current year’s spending plan. Those vetoes totaled $4.74 million. It was not immediately clear whether the Senate also will vote to override the vetoes.
The four vetoed items were $140,000 for the Florida Senior Veterans in Crisis Fund; $2.5 million for a Rockledge water-treatment project; $1 million for an automated staffing, time management and scheduling system; and $1.104 million for a sewer and water project in Baldwin.
Betta said Albritton is gathering input and “will make a final decision regarding taking up the additional veto overrides when the bill returns from the House.”
During a special session in February, the House and Senate overrode a DeSantis veto of $57 million for “legislative support services” — the first time the Legislature has overridden a DeSantis veto during his six years as governor.
After DeSantis vetoed the $57 million last year, the Legislature had to dip into reserves to avoid firing employees or shutting down operations.
–Jim Turner, News Service of Florida
