Florida Lawmakers Block Federal Tax Changes, Protect $3.5B for Treasure Coast Services

The Florida Legislature sent a bill to Gov. Ron DeSantis on Thursday that would prevent the state's tax code from automatically adopting changes made by a sweeping federal tax cut law, a move that protects as much as $3.5 billion in annual state revenue.

For Treasure Coast property owners, businesses, and residents who rely on state-funded services — from road maintenance to public schools — the action means Florida's budget would not face the sharp revenue shortfall that automatic alignment with the federal law could have triggered. Without the legislation, the state's tax code would have incorporated cuts from the federal One Big Beautiful Bill Act, which Congress passed and President Donald Trump signed, with the savings flowing primarily to large businesses rather than individual taxpayers.

The Legislature approved HB 7031 on Thursday and transmitted it to the governor. The measure effectively "decouples" Florida's tax code from the federal statute, preserving existing state revenue calculations rather than importing the federal reductions into state law.

State budget analysts estimated that adopting the federal changes would have reduced state coffers by up to $3.5 billion. Critics of automatic conformity argued that the bulk of any resulting tax break would benefit large corporations, not small businesses or working Floridians.

The bill now awaits DeSantis' signature or veto. If signed, it would take effect immediately, locking in the state's independent tax structure and shielding public services from the revenue loss that full federal alignment would have produced.

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