On June 30,2025, Florida Gov. Ron DeSantis signed House Bill 7031 into law, enacting major changes to Florida’s tax statutes that include eliminating business rent tax, permanent sales tax relief, extending the freeze on local cell phone and TV taxes, and the Home Away From Home Tax Credit.
Commercial Leases
Historically, Florida has been the only state to charge statewide sales tax on commercial rentals of property. Beginning in 2018, the legislature has steadily reduced the sales tax rate from 6% in 2018 down to 2% in 2024. Effective October 1, 2025, Florida House Bill 7031 permanently eliminates the sales tax on commercial leases.
Sales Tax Relief
HB 7031 establishes sales tax relief and makes permanent the following tax provisions:
- Back-to-School Sales Tax Holiday during the month of August for clothing, shoes, backpacks, school supplies, and personal computers (subject to a dollar threshold per item)..
- Disaster Preparedness for certain batteries, fuel tanks, portable generators, tarps, ground anchors, bottled water, first aid kits, and many food items, effective August 1, 2025.
- Health and Safety for fire extinguishers, smoke detectors, carbon monoxide detectors, sunscreen, insect repellent, life jackets and bicycle helmets, effective August 1, 2025.
- State Park Admission for admission to Florida State Parks, effective August 1, 2025.
- Gold, Silver, and Platinum Bullion when purchased in units valued under $500, effective August 1, 2025.
HB 7031 creates a new Florida Hunting, Fishing and Camping Sales Tax Holiday from September 8 to December 31, 2025, for camping, fishing and hunting supplies.
Extending the Freeze on Local Cell Phone and TV Taxes
HB 7063, enacted in 2023, froze the local communications services tax rates for three years, expiring on January 1, 2026, has been extended under HB 7031 until January 1, 2031.
Home Away From Home Tax Credit
HB 7031 create the Home Away From Home Tax Credit, which provides tax credits to Florida businesses that contribute to charitable organizations that house families of critically ill children at little or no cost to the family while travelling for their child to receive care. This credit is available against corporate income taxes, insurance premium taxes, and certain excise taxes and is subject to specific eligibility for both donors and recipient organizations. This new tax credit takes effect at various points in 2025 and 2026.
There are other provisions in the new legislation HB 7031. Continued monitoring of Florida agency guidance is strongly encouraged to ensure compliance with the new law. HB 7031 can be found HERE. For more information on this new legislation, please contact your Prager Metis relationship manager.
Authored by Patricia Hamilton, Tax Principal, Miami Lakes, Florida
