Keep Florida Taxpayers Free in 2025

To: Members of the Florida Legislature

From: Americans for Tax Reform

Re: Keep Florida Taxpayers Free in 2025

On behalf of Americans for Tax Reform (ATR) and our supporters across Florida, thank you for your service, and efforts to protect taxpayers and keep Florida free.

Florida remains a leader among the 50 states on numerous metrics, attracting new residents and businesses at a rapid pace. This is thanks to conservative governance, zero income tax, a low overall tax burden, one of the best regulatory environments, and policies that protect individual liberty.  

This session, we urge you to continue to protect taxpayers by opposing any proposed tax increase, limiting the growth of government, and seizing opportunities to reduce burdens on families and businesses. With 26 legislators and the governor having signed the Taxpayer Protection Pledge opposing all tax hikes, Florida taxpayers are in good hands. 

ATR broadly supports keeping overall spending levels in the budget frozen, or reducing them, to keep government growth in check and avoid adding burdens that may cause pressure on taxpayers in the future. 

Florida has been a leading state in containing the growth of spending under the rate of inflation and population growth, ATR’s Sustainable Budget Project analysis shows.

Eliminate the Commercial Rent Tax: 

ATR supports finally eliminating the commercial lease tax that forces businesses renting space to pay a tax on that expense. This tax is the very rare example of a harmful policy that Florida has and other states do not. Running a business, even in the friendly environment Florida offers, is tough and the commercial lease tax only makes it more difficult. 

ATR applauds the great progress and leadership the legislature has shown in significantly cutting the tax. With the Governor calling for ending the tax in his budget proposal, this session offers a great opportunity to fully eliminate this tax on Florida businesses. 

Reject Permanent Cost of Living Increases in Taxpayer-funded Pensions

To help keep burdens on taxpayers in check, ATR opposes HB 945 and SB 1126 which would install automatic cost of living adjustments to state pensions. The estimated cost of these bills could rise to $47 billion (Reason Foundation).

The legislature made good reforms to government pensions in prior sessions, increasing the amount workers and their employers contribute to their defined contribution plans, which is the state’s primary retirement plan. 

However, permanently increasing pension fund costs with a cost-of-living adjustment (COLA) moves in the wrong direction. 

A one-time infusion of funds into the retirement accounts of government workers could be an appropriate compromise.

Support Lower Tax Rates on Safer Tobacco Alternatives

To reduce tax burdens and incentivize improvements to public health, ATR supports HB 785, and SB 1418. Thesecommon-sense bills ensure lower-risk cigarette alternatives, such as heated tobacco products authorized by the Food and Drug Administration (FDA), are taxed at a more appropriate rate than combustible tobacco. 

These products should not be taxed at the destructive cigarette tax rate. A more sensible tax rate will help consumers—particularly smokers looking to quit—by allowing them to keep more of their hard-earned money.

Heated tobacco products, which heat rather than burn tobacco, greatly reduce nearly all of the negative health effects associated with smoking while retaining key elements that make them effective smoking cessation tools. 

The FDA has stated unequivocally that these products “could help addicted adult smokers’ transition away from combusted cigarettes and reduce their exposure to harmful chemicals,” allowing them to be marketed accordingly. 

Furthermore, ATR urges that its final language be crafted with a forward-thinking approach. It is essential to ensure that not only currently available reduced-risk products but also future innovations in tobacco harm reduction are encompassed within its scope.

Oppose Undue Government Manipulation of Single Family Zoning

Florida’s rapid population growth is a testament to the good work the legislature has done to keep the state free and welcoming to taxpayers. That growth makes it extremely important that the housing market is not unduly interfered with through anti-free market legislation like SB 634 and HB 401. ATR strongly opposes these bills. 

This legislation would have the government manipulate the housing market through new zoning rules that would ban investors and developers who might rent a home out from purchasing single family homes.  

The goal of looking out for individual homeowners, and those looking to purchase their first home, is understandable, but this approach is short-sighted. 

Institutional investors were still only buying 2% of single-family homes during the housing market boom of 2022. This volume has declined as the housing market has slowed. 

HB 401 and SB 634, in attempting to target this dwindling issue, would reduce buyer options for Florida homeowners who are looking to sell their property.  It could also limit where people who can only afford to rent are able to live. Especially in areas without a wide variety of rental options – like high-rises – this could impose a significant burden on renters. 

Housing prices in Florida are already going down. The legislature has rightfully made major reforms to the insurance market to reduce cost of ownership. HB 401/ SB 634 should be rejected. 

ATR applauds your efforts to protect Florida taxpayers and keep the Sunshine State the most taxpayer-friendly state in the nation.

Sincerely, 

Grover Norquist

President

Americans for Tax Reform