2025 Legislative Update #3

Florida lawmakers have entered the (hopefully) last week of the annual 60-day Legislative Session, which is deep in the final throes of legislating with many bills still active and the 2025-26 state budget under final negotiation. 

Late last week, legislative leaders informed their respective chambers that the House and Senate were at a budget impasse and currently unable to bridge a more than $4 billion difference in fiscal priorities, with the House aiming to significantly reduce state revenues, while the Senate is concerned that such a large reduction could lead to fiscal shortfalls and subsequent tax increases.  

If the Legislature plans to meet their May 2 deadline for adjournment, the final printed state budget must be published by April 29 and voted on by May 2. As of April 28, “top line” budget levels have not been established by the budget conference, thereby likely delaying the end of the current session past its targeted Friday adjournment. Depending upon the negotiations this week, House and Senate leaders have two choices: extend the current session or adjourn and return later in May or June for a special session. The path forward is currently unclear.

Earlier in April, the Florida House and Senate passed their respective budget proposals, with the Senate's budget totaling $117,355,632,050 and the House's budget totaling $112,953,017,248. That leaves the two chambers about $4.4 billion apart in total spending. 

Gov. Ron DeSantis and House Speaker Daniel Perez have offered up big-ticket tax relief items, including a permanent reduction in the state sales tax from 6% to 5.25% (Perez) or significantly lowering/eliminating property taxes (DeSantis) – both estimated to cost $5 billion. The Senate has offered a permanent elimination of the sales tax on clothing and shoes, along with the potential for a property tax decrease using Tourist Development Taxes to offset the difference. 

St. Johns County has an entirely new State Legislative Delegation this year. The Chamber encourages you to contact them directly on issues of importance to 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 an update on several of the important issues the Chamber is engaging on that will have a direct impact on St. Johns County businesses:

Elimination of 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 House is moving forward with another reduction effort from the current 2% to 1.25% and the House Ways and Means Committee favorably moved the bill forward on April 2. This .75% decrease is contained in both the House and Senate budgets. The Chamber is working through the Florida Chamber’s Commercial Rent Tax Coalition to completely eliminate this tax on business. 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. The Chamber is supporting St. Johns County's requests for 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. 

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; Senate Rules Committee approved unanimously on April 1, 2025. These bills have been added as amendments to the Live Local Act bills above, where both were approved during floor action the week of April 21. 

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 the House floor. The Senate companion measure has not moved since introduction.

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 source for employment and revenue, 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. Legislation we're following:

• HB1221/SB664 (Rep. Miller/Sen. Trumbull) Local Option Taxes including Bed Tax This bill requires that any local discretionary sales tax, tourist development tax, or local option food and beverage tax that is subject to approval in a referendum that is in effect on June 30, 2025, be renewed on or before Jan. 1, 2033, in accordance with existing requirements for a referendum. The bill creates a new 8-year duration for those taxes. Future levies that will be pledged for debt service are subject to a maximum 30-year duration. If approved, this Local Option Tax legislation could require local Tourism Development Taxes (like St. Johns County's bed tax) to be reauthorized by voter referendum every 8 years.
• HB1221/SB7033 (House/Senate Florida Budget/Tax Packages) Amendments have been filed (April 21, 2025) to SB 7033 and HB 1221, now included in the House-passed budget and subject to conference. This legislation would prohibit the use of Tourist Development Taxes for their intended purpose of promoting tourism. Instead, these amendments would divert TDT revenue to offset proposed property tax levies – with no guarantee that local businesses would benefit from the tax relief. We must protect the tourism industry – St. Johns County’s top employer and chief economic driver. The proposed changes to TDT threaten the livelihoods of millions of Floridians and the sustainability of businesses like our Chamber members.

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. We all understand the importance of easing property tax burdens, but this proposal completely undermines the purpose of Tourist Development Taxes, which are essential for keeping St. Johns County top of mind as a travel destination. Without these investments, our ability to attract visitors will decline — harming our businesses, our communities, and our workers. If these changes pass, the impact on our local hospitality industry will be severe and irreversible. This is not just about numbers — it's about real people, real jobs, and the future of Florida's economy.

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. Urge our legislators to OPPOSE sunsetting of our county's Tourism Development Council and its ability to use Bed Tax dollars to promote St. johns County as a tourism destination.

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. House Civil Justice & Claims Subcommittee advanced House Bill 1551 – Attorney Fee Awards in Insurance Actions by Rep. Cassel by a vote of 16-1; approved by House Civil Justice and Claims Subcommittee; approved by House Insurance and Banking Subcommittee; pending in House Judiciary Committee.

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. Latest action: Approved on the Senate floor by a unanimous vote of 35-0 on April 9. This bill provides for the creation of the Florida Museum of Black History Board of Directors, including a selection process for board members.