Legislative Alert: Wins for local business in state budget

By SJC Chamber of Commerce

7/11/2025

Public Policy Advocacy

On June 30, Gov. Ron DeSantis signed into law the $117.4 billion state budget for 2025-26 after the legislature struggled over the budget for six weeks beyond the planned May 2 adjournment. Some wins for St. Johns County:

Sales tax on rent eliminated: Effective Oct. 1, 2025, the 2% sales tax on commercial rent will no longer be eliminated, saving St. Johns County businesses millions of dollars. The St. Johns County Chamber has advocated for many years to eliminate this unreasonable tax burden on our business community.

TDT authority remains intact: The final state budget makes no mention of weakening or eliminating the tourist development tax (“bed tax”) authority used by the St. Johns County Tourist Development Council to promote tourism in the county. The Chamber fought hard to keep out any language weakening the current TDT structure, which brings in about $23 million each year to support the county’s tourism sector.

Affordable housing funding: The Sadowski Trust Fund for Affordable Housing was fully funded, sending back to local governments millions of dollars earmarked for workforce/low income housing construction and renovation under the State Housing Initiatives Partnership (SHIP) and the State Apartment Incentive Loan (SAIL) programs. The Chamber has strongly advocated for these funds to go entirely to SHIP and SAIL, rather than to pay for other programs and emergencies as had been done in recent years.

Infrastructure improvements: Rep. Kim Kendall secured $500,000 for improvements to the interchange of International Golf Parkway and Interstate 95.

Black History Museum funding: Sen. Tom Leek secured a $1 million appropriation for the Florida Black History Museum to be located in St. Augustine.

Airport update: Kendall’s bill renaming the Northeast Florida Regional Airport as the St. Augustine Airport was signed into law by DeSantis on June 9.

Tax package highlights:

Aviation fuel tax repealed, effective Jan. 1, 2026.
Back to School Sales Tax Holiday made permanent and will run throughout August each year.
Permanent sales tax exemptions established for batteries, smoke detectors, generators, bicycle helmets, sunscreen and Florida State Park admissions.
A new Hunting, Fishing & Camping Sales Tax Holiday will run Sept. 8-Dec. 31, 2025.
Also included: Corporate tax credits for housing families of critically ill children and supporting rural investment and expands property tax exemptions for affordable housing.