On June 30, 2025, Florida Governor Ron DeSantis signed House Bill 7031 into law, introducing significant changes to Florida’s tax statutes that will impact businesses, individuals, and nonprofits. These changes roll out across 2025 and 2026. Key highlights include:

Elimination of Sales Tax on Commercial Leases

•    Effective October 1, 2025, state sales tax on commercial real property leases will be fully repealed. Rent paid for occupancy after that date will no longer be taxed—even if prepaid. Businesses should review lease agreements now to prepare.

New and Expanded Sales Tax Exemptions

•    Sales Tax Holidays for hunting, fishing, and camping gear (Sept. 8–Dec. 31, 2025)
•    A permanent Back-to-School Sales Tax Holiday every August
•    Expanded exemptions for live events, state parks, health & safety gear, and all gold, silver, and platinum bullion (no price threshold)
•    Retailers must update POS systems accordingly.

Data Center Incentives Extended

•    Sales tax exemptions for qualifying data centers are now extended to 2037, with a raised threshold of 100 MW, encouraging major tech infrastructure investment.

Corporate Income Tax Updates

•    Florida’s code is aligned with the federal IRC as of Jan. 1, 2025. Starting in 2026, charitable trusts will no longer be treated as corporations for state tax purposes.

New “Home Away From Home” Tax Credit

•    Businesses may claim a tax credit for contributions to nonprofits that provide housing for families of critically ill children. Applies to corporate income, insurance premiums, and excise taxes—subject to eligibility rules.

Property Tax Appeals Modernized

•    Changes include increased filing fees, clarified court deadlines, electronic hearing options, and enhanced notice requirements.

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