Florida Lawmakers Move to Shield State From Trump Federal Tax Changes
Decoupling from federal code could cost state up to $3.5B next year; business lobby raises concerns
WHAT HAPPENED: Florida's Republican-led Legislature advanced a bill Wednesday that would "decouple" the state's corporate income tax code from the federal tax changes in President Donald Trump's One Big Beautiful Bill Act.
WHAT IT MEANS: Applying the new federal tax breaks at the state level could cost Florida up to $3.5 billion in revenue next year — and up to $7 billion in future years — according to state economists. Legislative leaders, facing projected shortfalls, chose to limit that exposure rather than pass the cuts along to Florida corporations. The Senate tax package (SB 7046) passed the Senate Finance and Tax Committee unanimously Wednesday. A separate bill (SB 7048) containing modest tax cuts passed 5-2.
WHO IS AFFECTED: Corporate taxpayers statewide would not receive a state-level mirror of federal breaks. The SB 7048 package includes a seasonal sales tax holiday on hunting, fishing, and camping products — including firearms, ammunition, and related accessories — running Sept. 7 through Dec. 31, saving consumers an estimated $34.1 million but costing the state $26.4 million and local governments $7.7 million. The bill also includes a three-year exemption on insurance premium taxes for flood policies issued by surplus lines companies, projected to cost the state $27.8 million, and cuts to cardroom and slot machine taxes estimated at $14.2 million next year.
WHAT WE DON'T KNOW: The Florida Chamber of Commerce has raised concerns, saying some provisions — particularly in the House version — create additional administrative burdens on businesses that Florida has not historically imposed. The House Ways and Means Committee is scheduled to vote on its version (PCB WMC 26-01), which contains $251 million in cuts mostly through sales tax exemptions, on Thursday.
WHAT TO WATCH: The 60-day legislative session is scheduled to end March 13. House and Senate leaders have not yet entered formal budget negotiations, where a final tax package will be hammered out.
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