The Florida Senate on Monday rolled out an expanded tax cut proposal that includes a one-time credit for annual vehicle registration fees and a three-year extension of the current freeze on local cell phone and cable TV taxes.

The updated plan comes as the Senate prepares for negotiations with the House, which has put forward a $5.43 billion tax package featuring a reduction in the state’s sales tax rate.

The Senate’s version, outlined in bill SPB 7034, is expected to reduce state revenue by $1.83 billion in the upcoming fiscal year. The proposal is scheduled to be reviewed by the Senate Finance and Tax Committee on Tuesday.

Building on previous proposals, the Senate’s plan includes a permanent sales tax exemption for clothing and shoes priced at $75 or less, and several sales tax holidays — including a newly added holiday for hunting gear. The vehicle registration credit alone is estimated to save Floridians $608.2 million.

Unlike the House plan, the Senate proposal does not include a permanent reduction in the state’s sales tax rate, which the House wants to drop from 6 percent to 5.25 percent.

Senate President Ben Albritton, R-Wauchula, emphasized the importance of focusing on one-time tax breaks this year to avoid the need for future tax hikes. He also called for more time to evaluate long-term reductions. The Senate bill would direct a legislative study into the potential elimination or reduction of property taxes — a top priority for Gov. Ron DeSantis.

The House-approved package also proposes cutting several targeted taxes, including a reduction in the commercial lease tax (from 2% to 1.25%), a lower sales tax on electricity (from 4.35% to 3.6%), a cut in taxes on new mobile home sales (from 3% to 2.25%), and a decrease in the tax on coin-operated amusement machines (from 4% to 3.25%).

Gov. DeSantis, who has publicly clashed with House leaders, criticized the House’s proposal as insufficient for working-class Floridians. He has proposed a one-time property tax credit and supports giving voters the option in 2026 to raise the homestead exemption or eliminate residential property taxes altogether. He also questioned the value of reducing sales tax for out-of-state tourists, saying, “I want the government funded by our non-residents as much as possible.”

DeSantis’ recommendations also include phasing out the commercial lease tax over two years and supporting sales tax holidays on school supplies, hurricane gear, recreational purchases, ammunition, and firearms.

The Senate plan continues Florida’s tradition of annual tax holidays. It proposes:

• A disaster-preparedness holiday in May
  
• A recreational supplies and activities holiday in June and July
  
• A back-to-school supplies holiday in August
  
• A tools-focused holiday around Labor Day
  
• A hunting season holiday from mid-September through December, covering items like ammunition and firearms
  

The two-month recreational tax holiday alone is projected to save consumers $237.6 million, covering items such as boating and camping gear, and admission to movies, sports events, museums, and state parks.

The Senate’s proposal to permanently remove sales tax on lower-cost clothing would reduce revenues by an estimated $857.8 million next year.

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(Image credit: Michael Moline/Florida Phoenix)

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