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FLORIDA - In a move aimed at easing the financial burden on Floridians and visitors, the Florida House has introduced a proposal to reduce the state's sales tax rate.
House Speaker Daniel Perez announced plans to permanently decrease the state sales tax from 6% to 5.25%, a reduction of 0.75%.
This initiative is projected to save taxpayers approximately $5 billion annually.
Perez emphasized the importance of making Florida more affordable, stating, "Our greatest priority of the House is to make sure that Florida becomes more affordable."
Currently, due to additional local tax mandates, residents and visitors in Miami-Dade and Broward counties pay a combined sales tax rate of 7%, while Monroe County stands at 7.5%.
The proposed reduction would lower the state portion, potentially decreasing overall sales tax rates across these regions.
Addressing concerns about the potential impact on state-funded services, Perez assured that the budget would not suffer.
He highlighted that his proposal includes the highest funding for K-12 education in Florida's history, with increased allocations per student and additional support for veteran teachers.
To offset the revenue decrease, the plan involves eliminating unfilled vacancies in state agencies that have remained open for more than 90 days.
This sales tax cut proposal aligns with Governor Ron DeSantis's recent focus on property tax relief.
DeSantis has expressed concern over rising property taxes, suggesting that they make homeowners feel like they are "renting" from the government.
He has proposed exploring constitutional amendments to address this issue, aiming to provide substantial relief to taxpayers.
The Florida Legislature's 60-day session is at its midpoint, and the sales tax reduction proposal is set to undergo review in the Senate.
If approved, the new state budget, incorporating this tax cut, will take effect on July 1.
This development reflects a concerted effort by Florida's leadership to alleviate the tax burden on residents and enhance the state's affordability.