Governor Ron DeSantis Enacts Annual Florida Tax Package Following $800 Million Line-Item Vetoes

TALLAHASSEE, FL — Florida's $117.6 billion state budget for fiscal year 2026–2027 took full effect following executive certification by Governor Ron DeSantis, alongside the formal rollout of the state's annual $1.5 billion tax relief package (HB 7031E).

Line-Item Vetoes and Commercial Tax Reductions

Governor DeSantis exercised constitutional line-item veto authority to eliminate approximately $800 million in local legislative spending earmarks, redirecting reserves into Florida's Budget Stabilization Fund. The certified budget includes reductions in the state commercial lease tax to 2.0% and extends sales tax holidays for hurricane preparedness gear, back-to-school supplies, and energy-efficient appliances.

Governor DeSantis emphasized that maintaining low debt and cutting business lease taxes continues to attract corporate relocation and capital investment to Florida.

Economic Impact and Municipal Feedback

Retail and hospitality federations welcomed the commercial lease tax rate reduction, while local municipalities adjusted capital timelines following vetoes of municipal stormwater grants.

State revenue collections showed an initial $420 million surplus above general revenue projections for the opening quarter.

Fiscal Year Reporting Timeline

The Florida Department of Revenue will release quarterly sales tax compliance reports in November 2026.