2025 Legislative Update #1
Florida lawmakers are entering the third week of the annual 60-day Legislative Session, which is in the early stages of considering hundreds of bills and the 2025-2026 state budget.
The Chamber is actively engaging on a number of issues that have a direct impact on the St. Johns County business community:
- Elimination of the state sales tax on commercial rents
- County infrastructure funding requests
- Workforce housing
- Workforce development
- Tourism development funding
- Property insurance changes
St. Johns County has an entirely new State Legislative Delegation this year; you can contact them directly about the issues that are important to you and your business.
Sen. Tom Leek (Chair)
4475 US 1 S., Suite 404
St. Augustine, FL 32086
(386) 446-7610 | Email
Rep. Kim Kendall (Northern St. Johns County)
2220 CR 210 W., Suite 108
PMB 223
St. Johns, FL 32259
(904) 295-1620 | Email
Rep. Sam Greco (Southern St. Johns County)
4877 Palm Coast Parkway NW, Suite 1
Palm Coast, FL 32137-3677
(386) 446-7644 | Email
Rep. Judson Sapp (Western St. Johns County)
620 South State Road 19, Suite 4
Palatka, FL 32177-3945
(386) 249-7060 | Email
Below is a summary of the issues we're working on, why they matter to our community and what's happening with them in the legislature:
Elimination of the state sales tax on commercial rents
Since the mid-2010s, the Legislature has reduced the commercial rent sales tax from 6% to the current 2% (plus half-cent county sales tax as of July 1, 2024); the Legislature is likely to either vote to further reduce the tax or eliminate it entirely. Final action will not occur until the closing days of the session, bundled into the tax/budget process.
Why does this matter? This tax becomes an added cost (and potential barrier) to opening and operating a business. Adding the 2.5% tax to a commercial lease every month is money out of your pocket or, at minimum, something to negotiate in your lease.
What can you do? Contact the SJC State Legislative Delegation and urge their strong support for the repeal of the sales tax on commercial rents.
Funding requests for county infrastructure projects
The county has a huge backlog of unfunded road and infrastructure needs. St. Johns County has requested substantial state funding to widen SR16, upgrade SR206, SR207, SR 208 and CR210, and to extend CR2209 and SR312/313. The county has also requested funding to address beach erosion south of the Guana Reserve, as well as funding for the completion of the feasibility study for a transit rail line between Jacksonville and St. Augustine.
Beth Tate, chair of the Chamber’s Public Policy Committee, developed this chart tracking appropriations requests from members of our Legislative Delegation:
| Who | Request # | Title | Amount |
| Rep. Judson Sapp | 2223 | HorsePlay Equine Therapy Center | $1,700,000 |
| 2184 | St. Johns County Police Athletic League - Diamond of Dreams | $1,000,000 | |
| 2177 | SJRS College - Renovation of Classroom Building/Workforce Training Center | $18,773,926 | |
| 2172 | District 23 Regional Medical Examiner's office | $6,000,000 | |
| TOTAL | $27,473,926 | ||
| Rep. Sam Greco | 2890 | The Institute for Classical Education at Flagler College | $1,500,000 |
| 2889 | World War II Themed Education and Exhibit Building | $500,000 | |
| 2886 | West Augustine Septic-to-Sewer Project | $1,100,000 | |
| 2125 | The Arc of the St. Johns - Transportation Facility Project | $750,000 | |
| 2110 | St. Augustine Land Purchase Engineering, Design and Construction of Resilient Structure on Anastasia Blvd. | $2,500,000 | |
| 2100 | St. Augustine Youth Services - Intensive In-Home Therapeutic Programs | $450,000 | |
| 2098 | St. Johns EPIC Recovery Center Women's Substance Abuse Residential | $750,000 | |
| 2095 | St. Augustine Beach Stormwater System Resiliency | $1,910,000 | |
| 2094 | Historic Markland House Restoration | $2,000,000 | |
| 2092 | St. Augustine Teen Center Boys & Girls Club | $400,000 | |
| 2088 | St. Augustine Beach Stormwater System Resiliency (withdrawn) | $1,910,000 | |
| 2083 | EPIC Community Services - Sober Living Transitional Housing Project | $2,500,000 | |
| 2082 | St. Johns County Intracoastal Flood Management | $8,000,000 | |
| 2081 | K9s for Warriors - Veterans Suicide Prevention Program | $1,500,000 | |
| 2080 | St. Johns County Council on Aging Shelter & Shade Project | $572,000 | |
| TOTAL | $26,342,000 | ||
| Rep. Kim Kendall | 2285 | FCTC - Firefighter & EMT Program Enhancement Expansion | $2,250,000 |
| 2136 | St. Johns County Sheriff's Office Re-Entry/Co-Responder Program | $760,285 | |
| 1857 | Switzerland Vocational & Community Center | $70,000 | |
| 1847 | FCTC - Industrial Agriculture Program Enhancements | $650,000 | |
| 1722 | St. Augustine Airport Student Maintenance Training Program | $250,000 | |
| 1499 | I-95 Interchange Improvements at international Golf Parkway | $3,500,000 | |
| TOTAL | $7,480,285 | ||
| Sen. Tom Leek | 2524 | Equine-Assisted Regional Rehabilitation Center for Children and Veterans | $1,700,000 |
| 2530 | St. Augustine Teen Center Boys & Girls Club | $400,000 | |
| 2531 | Historic St. Johns County Police Athletic League Diamond of Dreams | $1,000,000 | |
| 2533 | The Florida Museum of Black History Phase 1 – St. Johns County | $2,000,000 | |
| 2535 | District 23 Medical Examiner’s Office | $6,000,000 | |
| 2539 | I-95 Interchange Improvements at International Golf Parkway | $3,500,000 | |
| 2542 | St. Johns County Career and Job Readiness Program | $245,000 | |
| 2543 | St. Augustine Airport Student Maintenance Training Program | $250,000 | |
| 2544 | BRAVE (Be Resilient and Voice Emotions) Program | $3,000,000 | |
| 2546 | St. Augustine Land Purchase, Continued Design and Construction of Resilient Structure Anastasia Blvd. | $2,500,000 | |
| 2547 | Volusia Woods Extension – West Augustine Septic-to-Sewer Project | $1,000,000 | |
| 2549 | St. Augustine Beach Stormwater System Resiliency | $1,910,000 | |
| 2550 | The Arc of the St. Johns, Inc. Transportation Facility Project | $750,000 | |
| 2551 | FCTC – Firefighter & EMT Program Enhancement/Expansion | $760,285 | |
| 2553 | Hastings Museum and Community Civic Center | $400,000 | |
| 2554 | St. Johns County State Road 16 Phase II | $30,000,000 | |
| 2555 | The Institute for Classical Education at Flagler College | $1,500,000 | |
| 2556 | St. Johns County Historic Markland House Restoration | $2,000,000 | |
| 2557 | St. Johns County Road 2209 Central Segment – Phase 3 | $8,000,000 | |
| 2840 | St. Johns County EPIC Sober Living Transitional Housing Expansion Project | $2,500,000 | |
| 2841 | EPIC Center Women’s Substance Abuse Residential Treatment Beds | $750,000 | |
| 2870 | St. Johns County Council on Aging Shelter & Shade Project | $572,000 | |
| 3013 | St. Augustine Youth Services Intensive In-Home Therapeutic Programs | $450,000 | |
| 3177 | Home Again St. Johns, Inc. Homeless Veterans Support & Housing | $250,000 | |
| 3184 | Anastasia Island Pedestrian and Bicycle Safety Improvements | $500,000 | |
| TOTAL | $72,587,285 | ||
Why does this matter? Getting around St. Johns County is not always easy. Businesses are negatively affected as employees cannot get to work in a reasonable amount of time, residents are hesitant to get on the roads to go about their daily activities, and our quality of life suffers as we spend more time in traffic. State funding requests will go a long way to upgrading infrastructure as the county continues to grow and prosper.
What can you do? Urge support of the county legislative delegation for these high priority road and infrastructure investments.
Attainable housing
The median home price in St. Johns County is more than $550,000; many workers cannot afford to live here. Last year, the State Legislature amended the Live Local Act to further incentivize builders and developers to construct more housing at more affordable prices. A number of bills have been introduced to further “refine” incentives that can be offered to developers to create additional attainable housing; here are the bills we're following:
- HB 923/SB1594 Live Local Act Amendments (Lopez/McClain) Florida is in the midst of a housing affordability crisis, particularly impacting the “missing middle”—those who earn too much for traditional affordable housing but too little for market-rate homes. This challenge is pushing young professionals and essential workers including teachers, healthcare professionals, and first responders, out of the communities they serve and out of Florida, leading to a loss in workforce retention and hindering Florida’s long-term economic growth. HB 923/SB 1594 addresses these critical issues by removing development barriers through tax exemptions for nonprofit developers and pre-certification for affordable housing projects. The legislation provides incentives for mixed-use and multifamily developments, creating diverse housing options to meet the needs of the workforce. HB 923/SB 1594 ensures long-term affordability by preventing displacement as tenants' incomes rise, allowing workers to build stability without being priced out. The bill also promotes adaptive reuse of existing structures, maximizing the potential of underutilized properties.
- HB 247/SB 184 Accessory Dwelling Units (Conerly/Gaetz) Requiring, rather than authorizing, local governments to adopt an ordinance to allow accessory dwelling units in certain areas; authorizing a local government to provide a density bonus incentive to landowners who make certain real property donations to assist in the provision of affordable housing for military families; requiring the Office of Program Policy Analysis and Government Accountability to evaluate the efficacy of using mezzanine finance and the potential of tiny homes for specified purposes, etc. Latest action: Senate Appropriations Committee on Transportation, Tourism, and Economic Development approved unanimously.
Why does this matter? The lack of attainable housing impacts businesses’ ability to expand and hire workers, including first responders and teachers. As workers seek housing outside the county, local employers will struggle to attract and retain employees due to increased commute times and associated costs, or employers will be forced to pay more to hire and retain employees.
What can you do? Contact our Legislative Delegation members and urge them to support further amendments to the Live Local Act that would encourage builders and developers to increase attainable housing options in the county.
Workforce development
With our partners at First Coast Technical College, St. Johns River State College, the St. Johns County School District and private sector employers, the Chamber's goal is to develop a well-educated, homegrown talent pipeline. The Chamber supports state appropriations and grants designed to grow a strong local workforce. Legislation we're following:
- HB 571/SB 1094 (Rep. Kendall/Sen. Simon) Career Planning Opportunities for students This bill strengthens Florida's K-12 education system and talent development by integrating career planning, work-based learning, and apprenticeships, expanding access to paid opportunities for students over 16 through career fairs, and creating a framework for awarding postsecondary credit for apprenticeship-related education, enhancing career mobility and educational advancement. Latest action: Approved unanimously by the House Careers and Workforce Subcommittee and is now headed to two more committees.
Why does this matter? Employers need a pipeline of qualified workers to fuel growth and prosperity. Developing homegrown talent not only provides jobs for St. Johns County residents, but also it helps ensure a solid future for our local economy. We need young people to stay in St. Johns County, find work in St. Johns County and keep us moving forward.
What can I do? To get involved in local workforce development programs or to learn how your business can benefit from the many available programs, contact Scott Maynard, the Chamber’s senior vice president of economic development and public policy. You can also encourage these programs by sharing support for state and federal funding for workforce development in the county.
Tourism Development Funding
As St. Johns County’s largest sector, a strong tourism and hospitality industry is vital to the economic well-being of our community. The Chamber has long supported tourism development efforts, including Visit Florida, the state’s nonprofit tourism development corporation, which assists bringing visitors to areas like St. Augustine and Ponte Vedra Beach. The Chamber also strongly opposes any effort to divert tourist tax revenues away from localities or to allocate the revenues to fund non-tourism related programs.
Why does this matter? Visitors to St. Johns County spend billions of dollars here each year, supporting many sectors of the economy. According to county data, in 2023 visitors spent more than $2.4 billion locally. Additionally, the county’s Tourism Development Tax (paid primarily by non-local tourists) provides more $23 million annually to support the local tourism and hospitality industry, allowing businesses to hire more workers and improve their facilities.
What can I do? Contact members of the county’s State Legislative Delegation to let them know how important tourism funding is for St. Johns County, including the need for continued funding of Visit Florida.
Property Insurance
If you’ve recently received a renewal notice of your businesses’ property insurance, you don’t need an additional reminder that insurance rates have skyrocketed in recent years. While the Legislature's focus has been on residential property insurance rates, business insurance rates have risen in lockstep, costing businesses scarce dollars that could be otherwise used for staff, inventory and building maintenance.
On March 14, at the direction of House Speaker Danny Perez, the House Insurance and Banking Subcommittee held a hearing following the Speaker’s call for an investigation into what he described as “accounting tricks” insurance companies used “to hide substantial profits while telling us they were in a crisis.” Hearings are expected to continue through March as the Legislature grapples with this important issue. Legislation we are following:
- HB 1551 (Cassel) Property Insurance Attorney's Fees Requires court to award attorney fees to prevailing parties in civil actions brought against surplus lines insurers and insurers by named or omnibus insureds or named beneficiaries; provides guidelines to determine prevailing parties; provides applicability of prevailing party attorney fee provision to specified insurers, insurance policies or coverage types, & rate standards & to claims presented to specified guaranty associations. Latest action: House Civil Justice & Claims Subcommittee advanced HB1551 by a vote of 16-1.
Other bills we're watching:
- SB 466 (Leek) Florida Museum of Black History The Senate Committee on Community Affairs reported the bill favorably on March 11; next committee stop is Senate Appropriations. This bill provides for the creation of the Florida Museum of Black History Board of Directors, including a selection process for board members. It directs the board to oversee the commission, construction, operation, and administration of the museum, working jointly with the Foundation for the Museum of Black History, Inc. and the St. Johns County Board of County Commissioners, which will provide administrative support and staffing to the board for pre-construction activities.