DeSantis Signs $115 Billion Budget: Florida Business Tax Cut Unveiled!

Florida, USA - Governor Ron DeSantis recently made headlines by signing a state budget totaling $115.1 billion, effectively shaping Florida’s financial landscape to come. This new budget incorporates $567 million in vetoes and marks a reduction of $500 million from the governor’s initial proposal. Interestingly, DeSantis touted that the finalized budget represents a $10 million increase compared to his adjusted recommendations after the vetoes. However, it reflects a decrease from the previous year’s budget, which stood at $117.46 billion.

Among the significant budget decisions, DeSantis eliminated a substantial $750 million intended for a reserve fund, which will still manage to near the $5 billion mark. He hinted at a potential constitutional amendment on the November 2026 ballot that would allow voters to increase those reserves. Meanwhile, the new budget does not include the governor’s proposals regarding property tax reductions, leaving many taxpayers eager for further reform. The budget also effects a reduction of 1,745 positions, translating to about 1.5% of the authorized state workforce.

DeSantis’s measures do not stop there. Florida became the first state to abolish its business rent tax, effective from July 1, with an expected annual savings of approximately $1.53 billion for businesses. This is part of a broader effort that encompasses a $2 billion other tax cut plan, projected to facilitate roughly $1.3 billion in state revenues and an estimated $700 million from local governments, as reported by Tallahassee.com.

Vetoed Items and Budget Breakdown

A closer inspection of the vetoed items reveals a range of important programs that will see cuts, including funding for the Hillsborough County Sheriff’s Office hangar at $14 million, public television and radio stations, and assistance programs for Broward County residents. Among them, the budget will not include a $1 million study on the consequences of eliminating property taxes, with DeSantis asserting that proactive steps are necessary instead.

The budget’s implications stretch far and wide. While there are tax cuts on the horizon, such as the elimination of the business rent tax and permanent sales tax holidays for the back-to-school season, not all are pleased. The proposed reductions to public education-related taxes, advocated by House Speaker Daniel Perez, did not find traction in the legislative process due to concerns about their fiscal impact, as pointed out by the Florida Policy Institute.

As we step forward into this new fiscal realm, Floridians are left pondering what these changes mean for them and their communities. With the governor’s office currently missing both a lieutenant governor and a chief financial officer due to recent resignations, the administration’s future decisions could significantly shape the state’s financial map ahead of the July 4 break.