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Legislative Update: Legislature releases annual tax package

February 27, 2026

In this update: 

  • Week 7 marks the shift from committee activity to floor action and end-of-Session procedures.
  • The House and Senate move forward with their annual tax packages for negotiation.
  • The House and Senate align on a “piggyback” bill, decoupling Florida from several OBBBA-related changes.
  • Budget negotiations continue as the Budget Conference approaches.
  • And we update our 2026 FICPA Bill Tracker. 

House and Senate Release Annual Tax Packages 

This week, the House and Senate released their annual state tax packages, Senate Bill 7046 and House Bill 7031. Each year, the tax package is developed alongside the state budget to establish tax policy and revenue issues for the upcoming fiscal year.  

This year’s proposals continue several sales tax holidays, such as the exemption on hunting, fishing and camping sales. As a reminder, the popular back-to-school sales tax holiday and several other tax holidays were made permanent in last year’s tax package and will automatically continue this year. The Senate bill includes several provisions affecting fiscally constrained counties, including revisions to eligibility criteria and a change in the revenue source for distribution, shifting from the direct-to-home satellite service tax to sales tax. 

The House bill requires short-term rental platforms to collect and remit taxes on charges associated with the use of vacation rentals. Service fees are excluded from tax calculation unless the advertising platform owns, operates, manages or is otherwise related to the rental property. 

Both tax package bills were passed out of their respective committees and are expected to be negotiated during the Budget Conference. The timing of the House and Senate proposals suggests a coordinated approach towards negotiations. As negotiations progress, differences between the chambers will be reconciled.  

Legislature Makes Decision to “Decouple” from Several Federal OBBBA Changes 

Unlike some other states, Florida does not automatically adopt new federal tax changes. Florida maintains its relationship with the federal Internal Revenue Code (IRC) by annually adopting the IRC as it exists on January 1. By doing this, Florida adopts any changes related to determining federal taxable income that were made during the previous year. However, the Legislature may choose not to adopt, or to “decouple,” from changes made to the IRC in the prior year, and instead specify its own treatment of the issue or allow the previous IRC treatment to continue for Florida tax purposes. 

This is normally handled through a noncontroversial tax conformity measure each year. However, this year is different, as the Legislature has been contemplating how, and if, Florida should update its tax code to reflect the new OBBBA changes, particularly those affecting corporate tax provisions. This issue has been closely watched because conforming to those changes would have a significant revenue impact, estimated at between $1.5 billion and $3 billion in reduced state revenues. 

This week, the House and Senate rolled out their tax conformity legislation and are largely aligned on how Florida will address this matter. The Senate filed SB 7048 – Internal Revenue Code, and the House outlined its federal conformity position within its broader tax package. These bills update Florida’s corporate income tax code by adopting the federal Internal Revenue Code as of Jan. 1, 2026, ensuring conformity with recent federal tax law changes. 

Notably, however, the bills also decouple Florida from several major OBBBA provisions relating to corporate taxes. By decoupling from these provisions, the legislation retains Florida’s current corporate income tax structure and is intended to have no impact on expected state revenues. 

For a detailed summary of the provisions addressed in the bill, and specifics around how Florida will decouple, see the summary in the staff analysis from the Florida Senate found here. 

Week 7: Landing the Plane on Session 

As the Legislature concludes Week 7 of Session, attention is shifting from committee deliberations to resolving key issues. Many committees met for the final time this week, signaling the close of committee consideration. Focus now turns to floor action, budget negotiations, the tax package and preparations for adjournment (sine die). 

Thursday marked Day 45 of Session. After the 45th day of Regular Session, committees and subcommittees may only be noticed by 5 p.m. on the day prior to a scheduled meeting. Additionally, by majority vote, the House may, upon motion of the Chair of the Rules & Ethics Committee, advance directly to Communications, Messages from the Senate, Bills and Joint Resolutions on Third Reading, or Special Orders. These rules provide flexibility to accelerate legislative business as Session winds down. 

While speculation continues regarding the precise end date on Session – and whether an extension may be necessary – the Legislature remains engaged in completing its constitutional responsibilities. 

Update on FICPA Priorities 

SB 364 – Public Accountancy by Sen. Gruters passed the Senate unanimously on Jan. 29. However, the House has yet to take action. At this time, the FICPA’s legislative priority in House,HB 333 – Public Accountancy by Rep. Blanco, has not received a hearing in any House committee, and House committees are no longer meeting. The Senate Bill cannot be considered by the House if the House Bill has not advanced through committee.  

HB 607 – Industries and Professions, the bill proposing elimination of the Florida Board of Accountancy, has not advanced further in the committee process. 

Looking Ahead 

The Legislature is still awaiting formal scheduling of the Budget Conference, a key milestone that signals the beginning of final negotiations between the chambers. Once the Conference is convened, lawmakers will work to reconcile differences in spending priorities, revenue assumptions and the tax package. 

Next week, the Legislature will return for Week 8. The Senate will hold its final scheduled committee meetings of the Session and will hold floor sessions Wednesday through Friday. The House will hold floor sessions Tuesday through Thursday.  

As is typical at this stage, the Legislature is entering the period where long days, late nights and rapidly evolving negotiations define the path to sine die. 

FICPA's 2026 Bill Tracker 

This section provides a broad overview of the key issues the FICPA Governmental Affairs team is monitoring during the 2026 Legislative Session. While the FICPA tracks more than 2,000 bills each year, the bill tracker focuses on a select group of proposals that could significantly impact the CPA profession, are actively moving through the Legislature and are receiving direct engagement from the FICPA. If you have questions about a bill not included in this report, please contact Jason Harrell at jasonh@ficpa.org. 

DBPR/Licensure 

House Bill 333 – Public Accountancy by Rep. Blanco / Senate Bill 364 - Public Accountancy by Sen. Gruters. FICPA’s priority legislation proactively proposes efficiencies and opens new pathways to licensure. The bill strengthens and enhances Florida’s practice privileges, streamlines licensure by endorsement and increases efficiency in the licensing process. The bill also proposes alternative pathways to licensure, providing more options and flexibility while maintaining the required accounting and business knowledge:   

  • Current Path: 150 semester hours, one year of experience and passage of the CPA exam.
  • New Pathway 1: Master’s degree in accounting/finance, one year of experience and passage of the CPA exam.
  • New Pathway 2: Bachelor’s degree in accounting/finance, two years of experience, and passage of the CPA exam.  
  • New Pathway 3: Bachelor’s degree in any field, with coursework in accounting/finance, two years of experience and passage of the CPA exam. 

*Note that all pathways require accounting and business concentrations, as prescribed by the Florida Board of Accountancy, from an accredited college or university.  

The FICPA’s efficiency bill will make Florida a national leader by providing an effective licensure process that strengthens and promotes the state’s economy and workforce.  

  • HB 333 has been referred to the Industries and Professional Activities Subcommittee in the Florida House of Representatives.
  • SB 364 passed unanimously off the Senate floor. It now sits in messages to the House and awaits presentation on the House floor.  

House Bill 607 – Industries & Professional Activities by Rep. Yarkosky. The bill consolidates apprenticeship, licensure and continuing education requirements by reorganizing numerous professional boards under DBPR. As for the CPA profession, the bill completely eliminates the Board of Accountancy.  

  • HB 607 passed the State Administration Budget Subcommittee in the House of Representatives. It will now be sent to its third and final stop, the House Commerce Committee.

Senate Bill 1666 – Department of Business and Professional Regulation by Sen. Burgess. This bill makes changes to licensing, oversight, and other references for numerous boards and professions with DBPR. Important to the CPA profession, the bill renames the Clay Ford Scholarship and expends scholarship eligibility.  

  • SB 1666 has been referred to the Regulated Industries Committee in the Florida Senate.

House Bill 1189 – Diversity, Equity, and Inclusion and Affirmative Action by Rep. Sapp. This bill removes statutory references to affirmative action and minority-based preferences across multiple Florida laws. The bill also retitles the Clay Ford Scholarship and adjusts criteria for scholarship applicants and council appointments.  

  • HB 1189 has been referred to the Governmental Operations Subcommittee in the Florida House of Representatives. 

House Select Committee on Property Tax Proposals 


House Joint Resolution 203 – Phased Out Elimination of Non-school Property Tax for Homesteads by Rep. Miller. The proposed constitutional amendment would annually raise the homestead exemption for non-school ad valorem taxes by $100,000 for 10 years and make homestead property fully exempt from non-school ad valorem taxes beginning in 2037. The proposal prohibits counties and municipalities from reducing law enforcement budgets below the higher of their 2025-26 or 2026-27 funding levels. 

  • HJR 203 passed off the House floor and was sent in messages to the Senate. The bill  has been referenced to the Senate Appropriations Committee.  

Audit/Tax/Industry 
House Bill 951 – One-cent Piece by Rep. McFarland / Senate Bill 1074 – One-cent Piece by Sen. Gaetz. The bill authorizes dealers to round cash or mixed-use purchases to the nearest nickel and establishes the methodology for doing so. Sales tax must be calculated and assessed prior to any rounding. 

  • HB 951 passed the House Commerce Committee. It has been placed on the calendar on second reading and awaits presentation on the House floor.
  • SB 1074 passed the full Senate. It will now be sent in messages to the House.

Senate Bill 678 – Deductions for Certain Losses of Alcoholic Beverages by Sen. Mayfield / House Bill 1137 – Excise Tax Deduction on Alcoholic Beverages by Reps. Robinson and Overdorf. The bill allows monthly excise tax deductions for vinous, spirituous, or malt beverage losses due to breakage, spoliation, evaporation, or expiration at specified percentage rates or actual gallonage in the case of malt beverages. It defines and excludes extraordinary losses from standard deductions, requiring immediate notice to the division and providing detailed steps to claim excise tax deductions for such losses.  

  • SB 678 was substituted for HB 1137 and passed both chambers of the legislature. The bill will now be signed by the officers and sent to the governor for signature.     

Senate Bill 7010 – Roth Contribution Plans in Deferred Compensation Programs by the Senate Committee on Governmental Oversight and Accountability. The bill allows deferred compensation plans offered by the state and local governments to provide a Roth contribution option and adds language permitting qualified Roth contributions in deferred compensation plans for eligible employees. The bill also repels the statutory provision previously restricting employee contributions to the state deferred compensation plan. 

  • SB 7010 passed off the Senate floor. It will now be sent in messages to the House to await presentation on the House floor.   

House Bill 797 – Nonprofit Corporations by Rep. Tuck / Senate Bill 554 – Nonprofit Corporations by Sen. Bernard. This bill is a major rewrite of chapter 617, which substantially revises the law governing nonprofit corporations and updating corporate powers, procedures, and filings.  

  • HB 797 passed the full House and was sent in messages to the Senate. The bill was referenced to the Senate Rules Committee. 
  • SB 554 passed the Senate Fiscal Policy Committee. It will now be placed on the calendar to await presentation on the Senate floor.  

Senate Bill 1296 – Public Employees Relations Commission by Sen. Martin / House Bill 995 - Public Employees Relations Commission by Rep. Persons-Mulicka. The bill repeals the requirement that organizations certified as bargaining agents provide its members with an annual financial report prepared by a CPA.  

  • SB 1296 was rereferenced to the Fiscal Policy committee where it awaits presentation. 
  • HB 995 passed the State Affairs Committee in the Florida House of Representatives. It will now be placed on the calendar to await presentation on the House floor.  

House Bill 103 – Local Business Taxes by Rep. Botana / Senate Bill 122 – Local Business Taxes by Sen. Truenow. The bills repeal Chapter 205, ending the statewide framework for local business taxes. The bills create s. 218.150 to permit municipalities already imposing a gross-receipts-based merchant tax to continue doing so, to revise the definition of “merchant” but not to adjust the existing tax rate. The bills remove requirements for businesses to present local business tax receipts or pay local business taxes across various industries and regulatory contexts. 

  • HB 103 passed the House floor, it was sent in messages to the Senate and referenced to the Senate Appropriations Committee. 
  • SB 122 passed the Community Affairs Committee in the Senate. It will now be sent to its second stop, the Senate Finance and Tax Committee.  

Senate Bill 250 – Rural Communities by Sen. Simon. The bill, a priority for the Senate President, establishes the Office of Rural Prosperity in the Department of Commerce to coordinate rural initiatives, administer grants and offer technical assistance. It creates the Renaissance Grants Program to provide block grants for counties with long-term population decline to stimulate growth and economic vitality.  

  • SB 250 passed the Senate Floor unanimously. It will now be sent in messages to the House to await presentation on the House floor.   

House Bill 145 – Suits Against the Government by Rep. McFarland / Senate Bill 1366 – Claims Against the Government by Sen. Brodeur. The bill increases statutory liability limits for tort claims against governmental entities, streamlines claim procedures and adjusts statutes of limitation and insurance provisions while creating new exceptions for specific victims.  

  • HB 145 passed off the House floor and was sent in messages to the Senate. The bill was referenced to the Senate Rules Committee. 
  • SB 1366 passed the Appropriations Committee in the Senate. It will now be sent to the Senate Rules committee.   

Senate Bill 482 – Artificial Intelligence Bill of Rights by Sen. Leek / House Bill 1395 – Artificial Intelligence by Rep. Rizo. The bill establishes an Artificial Intelligence Bill of Rights, restricting government contracts with foreign controlled AI entities. The bill also mandates that bot operators disclose to users they are interacting with nonhuman systems at the start of, and periodically during, any interaction.  

  • SB 482 was temporarily postponed on the Senate floor and was retained on the Special Order Calendar. 
  • HB 1395 has been referred to the Information Technology Budget and Policy Subcommittee in the Florida House of Representatives.  

House Bill 1329 – Local Government Spending by Reps. Benarroch and Miller / Senate Bill 1566 – Local Government Spending by Sen. DiCeglie. The bill increases local government budget transparency requirements and prohibit the use of public funds for diversity, equity, and inclusion initiatives. The bill extends the time periods for posting tentative and final budgets on county and municipal websites. The Bill mandates a budget cutting exercise identifying 10% in possible reductions before final budget adoption.  

  • HB 1329 passed the State Affairs Committee in the Florida House of Representatives. It will now be placed on the calendar and awaits presentation in the House.  
  • SB 1566 passed the Appropriations Committee on Agriculture, Environment, and General Government in the Florida Senate. It will now be sent to the Senate Rules Committee.  

 

Condos and HOA


House Bill 657 – Community Association by Rep. Porras. The bill removes statutory requirements for pre-suit mediation in condominium and homeowners’ association disputes and clarifies the use of arbitration instead. It requires associations to include or amend their governing documents with a statement referring to the Florida Condominium Act, subject to member approval.  

  • HB 657 passed the Commerce Committee in the Florida House of Representatives. It will now be placed on the calendar and await presentation in the House.  

House Bill 465 – Community Association Management by Rep. Nix / Senate Bill 822 Community Association Management by Sen. Gruters. The bills require associations with total annual revenues of $500,000 or more to contract with a community association management firm. The bills clarify that all applicable licenses under part VIII of chapter 468, F.S., must be held by the management firm. The bills impose a duty on each board member, officer or director to verify the licensure of the community association manager or firm before contracting. 

  • HB 465 passed the Commerce Committee, it will now be placed on the calendar to await presentation on the House Floor. 
  • SB 822 passed the Regulated Industries Committee in the Senate. It will now be sent to the Senate Judiciary Committee.  

Senate Bill 1498 – Community Associations by Sen. Bradley. The bill expands turnover inspection requirements for developers, clarifies structural integrity reserve study obligations for buildings with three habitable stories or higher, and updates electronic voting procedures for associations. The bill specifies “three habitable stories or higher” when determining if a structural integrity reserve study is required, with new criteria for study updates and disclosure requirements. 

  • SB 1498 passed Regulated Industries Committee in the Florida Senate. It will now be sent the Senate Appropriations Committee on Agriculture, Environment, and General Government.