Florida shoppers could soon see a drop in sales tax if a newly proposed bill moves forward.
Republican House Speaker Daniel Perez of Miami introduced legislation Wednesday to lower the state’s sales tax from 6% to 5.25%, a move that could reduce state revenue by nearly $5 billion annually.
For smaller purchases, the savings may seem minor. A $100 transaction would save 75 cents. But for big-ticket items like cars, a $40,000 purchase would save you $300.
Some residents, like Naples shopper Nancy Allen, believe the tax cut would help.
"Every penny counts, especially in this economy," Allen said.
However, others question how the state would compensate for the lost revenue. Florida relies heavily on sales taxes to fund critical services, including education, health care, and infrastructure.
Naples resident Susan Cranley expressed concerns about potential financial trade-offs.
"You just can't take something away and not put something in its place," Cranley said. "Where are you going to make up the money that you're not collecting from sales tax? Are you going to pay higher taxes like for, I don't know, car insurance? Property tax?"
Perez said the reduction would be permanent.
"This will not be a temporary measure, a stunt or a tax holiday," Perez said. "This will be a permanent, recurring tax reduction. This will be the largest state tax cut in the history of Florida."
Perez’s plan comes after Gov. Ron DeSantis wants to reduce or get rid of property taxes. If this bill passes, it would apply to most purchases across the state.