Governor DeSantis Signs Fiscal Year Budget, New Tax Relief Bill

On Monday, June 30, Florida Governor Ron DeSantis signed a $117.4 billion state budget for the 2025-2026 fiscal year, as well as a $2 billion tax relief bill which will include the creation and extension of several sales tax holidays. 

New sales tax holiday additions and amendments include the following:

• A permanent Back-to-School sales tax holiday every August, which includes clothing under $100, school supplies under $50, learning aids under $30, and personal computers under $1,500;
   
• A permanent sales tax exemption on event tickets, state park admissions, life jackets, sunscreen, bike helmets, and insect repellent, and more.
   
• Permanent exemptions for disaster preparedness items, including batteries, portable generators, tarps, gas cans, tie-down kits, smoke detectors, and carbon monoxide detectors and more. While many of these items were available tax-free during Disaster Sales Tax Holiday periods in previous years, the new bill makes these items tax-free throughout the year. These items join the list of other tax-free items in the State of Florida, which include bottled waer, first aid kits and various canned goods.
   
• A “Second Amendment” sales tax holiday from September 8 through December 31, 2025, providing relief on purchases of bows, firearms, ammunition, tents, sleeping bags, camping stoves, fishing rods and reels, tackle boxes, and bait and tackle.

Additionally, the bill will permanently eliminate a sales tax on commercial leases, which will take effect on October 1, 2025.

All other aspects of the bill went into law, effective today, July 1, 2025 unless otherwise noted. All specifics of the bill can be found on the Florida Senate website.

Stay informed with the latest news and information from the City of Palm Coast by following us on Facebook, Instagram, Twitter, YouTube, and LinkedIn. You can sign up for weekly updates by visiting www.palmcoastgov.com/government/city-manager/week-in-review.