Florida Extends Legislative Session Amid Budget Gridlock and $2.8 Billion in Tax Relief Proposals

The Florida Legislature has officially extended its 2025 session after failing to pass a state budget by the constitutionally required deadline. At the heart of the delay: disagreements over proposed spending levels and competing visions for tax policy and relief.

The extension, expected to run through June 6, is costing taxpayers an estimated $50,000 per day — and it comes at a critical time for Floridian businesses and residents awaiting clarity on tax changes.

What Caused the Budget Stalemate?

Florida law mandates that a balanced budget must be passed annually. However, this year’s negotiations broke down over differences between the:

• House’s proposed $113 billion budget

• Senate’s $117.4 billion version

• Governor DeSantis’ $115.6 billion recommendation

Tax policy played a central role in the impasse. Lawmakers debated the size and structure of a $2.8 billion tax relief package, including:

• Sales tax holidays for back-to-school and disaster preparedness

• Proposed property tax rollbacks in targeted counties

• Business tax cuts aimed at stimulating investment

  
  

While a framework has reportedly been agreed to that falls below the governor’s original figure, the specifics of what will remain in the tax package are still up in the air.

What Businesses and Individuals Should Watch

Florida CPAs and business owners should be alert to the following possibilities as negotiations continue:

• Shifts in sales and use tax policies that could affect retailers and wholesalers

• Changes to corporate income tax apportionment or rates, especially for multi-state operators

• Rebates or exemptions tied to hurricane season or educational materials that could impact expense planning

  
  

If finalized, these provisions could take effect as early as July 1, when Florida’s new fiscal year begins.

Final Thought

Florida’s extended legislative session is more than just political drama — it’s a reminder that state tax policy can change rapidly, especially during budget season. While $2.8 billion in proposed tax relief is on the table, how it gets carved up will matter deeply for families, businesses, and local governments alike.

At Bizora AI, we’ll continue monitoring Florida’s tax updates and break them down in real time for CPAs, advisors, and business leaders across the state.