Gov. Ron DeSantis on Monday approved a sweeping $1.6 billion tax relief package that eliminates a key business tax and offers sales-tax breaks on items ranging from school supplies to outdoor gear and ammunition.

The new law (HB 7031), which takes effect Tuesday, includes permanent sales-tax exemptions on hurricane-preparedness items like batteries, generators, and tarps. It also covers outdoor essentials such as life jackets, bicycle helmets, sunscreen, and insect repellent.

Floridians will also see tax relief on select admissions and purchases. Tickets to state parks and the NASCAR Cup Series Championship Races at Homestead-Miami Speedway are now tax-free, along with sales of gold, silver, and platinum bullion under $500.

The package establishes an annual back-to-school tax holiday every August, allowing families to skip sales taxes on items like clothes, school supplies, and computers. Previously, these holidays varied in timing and duration.

Another tax holiday, from Sept. 8 through Dec. 31, will waive sales taxes on hunting, fishing, and camping gear—including guns and ammunition. Eligible items include tents priced under $200, fishing rods and archery gear under $75, and camping equipment like sleeping bags and stoves.

Business groups are applauding the package’s biggest change: the elimination of Florida’s 2% commercial lease tax, which takes effect Oct. 1 and is expected to reduce state and local revenues by over $1.1 billion in the upcoming fiscal year. Bill Herrle, executive director of the National Federation of Independent Business in Florida, called the move “a culmination of a 10-year effort” and said it will bring “immediate economic relief” to small businesses.

Overall, the tax cuts are projected to provide $1.6 billion in relief in the first year, with nearly $2 billion in recurring savings in future years. According to legislative staff, the impact on state general revenue will be about $1.3 billion.

The back-to-school tax break alone accounts for $217 million of the first-year savings, with exemptions on clothing items under $100, school supplies under $50, learning aids under $30, and personal computers up to $1,500.

The hunting and fishing holiday is expected to save consumers an estimated $44.8 million.

Other provisions in the package include allowing tourist-development taxes to fund beach lifeguards and rural facilities, and repealing the aviation fuel tax.

DeSantis signed the tax cuts alongside the new state budget for the 2025-2026 fiscal year, which begins Tuesday.

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