What SALT Practitioners Need to Know About Sales Tax, Property Tax, Credits, and Administrative Changes Emerging from Florida’s 2026 Special Sessions

The 2026 Florida legislative year was anything but ordinary. Rather than concluding with the end of the Regular Session, lawmakers returned to Tallahassee for a series of special sessions that collectively reshaped several areas of Florida tax law. For state and local tax (SALT) practitioners, the resulting legislation produced meaningful changes affecting sales tax, property tax, documentary stamp tax, tax credits, tax administration, and pari-mutuel taxation.

Following the adjournment of the 2026 Regular Session on March 13 without completion of budget negotiations, the Legislature convened three separate special sessions. Special Session 2026D addressed congressional redistricting matters. Special Session 2026E, which adjourned on May 29, produced the state’s $114.5 billion budget and a broad tax package affecting multiple tax types. Shortly thereafter, Special Session 2026F convened and resulted in a proposed constitutional amendment focused on property tax relief that will appear on the November 2026 ballot.

This article examines the tax provisions enacted during these special sessions and discusses the practical implications for taxpayers, businesses, and advisors.

Sales and Use Tax Changes

One of the most visible changes enacted during Special Session 2026E was the permanent codification of Florida’s Back-to-School Sales Tax Holiday. Previously, taxpayers, retailers, and practitioners waited each year to determine whether lawmakers would authorize another temporary holiday. Beginning in 2026, that uncertainty is eliminated.

The holiday will now occur annually from July 20 through August 20. While the existence of the holiday is now permanent, practitioners should continue monitoring annual guidance issued by the Florida Department of Revenue. Product eligibility requirements and applicable price thresholds remain subject to administrative interpretation and may vary from year to year. Retailers should continue treating annual Department guidance as an essential compliance resource before the start of each holiday period.

The Legislature also created a temporary Hunting, Fishing, and Camping Sales Tax Holiday running from September 1 through December 31, 2026. The exemption applies to a variety of outdoor recreational products, including fishing tackle, camping stoves, sleeping bags, tents, and hunting equipment. Businesses operating in the outdoor recreation industry should review inventory classifications and point-of-sale systems to ensure qualifying products receive appropriate tax treatment during the holiday period.

Another notable change is the permanent exemption for propane tanks with a capacity of 20 pounds or less. These smaller tanks are commonly used for residential grills and similar household purposes. The exemption does not extend to larger commercial propane containers, making proper product classification important for retailers. Convenience stores, hardware stores, home improvement retailers, and outdoor equipment suppliers should evaluate whether system modifications are necessary to distinguish exempt and taxable propane products.
Florida also enacted a targeted exemption for admissions to ATP Masters 1000 and WTA 1000 tennis tournaments held within the state. The exemption remains in effect through July 1, 2029. Operators of qualifying venues and event promoters must carefully distinguish between exempt tournament admissions and admissions to other sporting events that remain taxable under Florida law.

Perhaps one of the more unusual sales tax provisions involves qualifying home hardening products. Purchasers of impact-resistant windows, doors, and garage doors may apply for a refund of sales tax paid on purchases made between July 1, 2026, and June 30, 2029. Importantly, this is not a point-of-sale exemption. Retailers must continue collecting tax at the time of purchase, and consumers must subsequently apply to the Department of Revenue for reimbursement. Practitioners should advise clients to retain receipts, invoices, proof of payment, and installation documentation to support refund claims.

The Legislature also established a mechanism allowing purchasers of qualifying heavy trucks to designate up to $105 of sales tax paid on the transaction to eligible nonprofit scholarship-funding organizations under Florida’s Tax Credit Scholarship Program. The provision does not reduce the amount of tax due. Instead, it reallocates a portion of existing tax revenue toward educational scholarship funding.

Public higher education institutions also received relief. State universities and colleges may now obtain refunds for sales tax paid on materials purchased by contractors and incorporated into campus construction projects. Historically, many institutions structured projects to require direct material purchases in order to preserve tax savings. The new law aligns tax treatment with the realities of modern public construction contracting and may produce significant savings on future capital projects.

Property Tax Changes

In addition to the separate constitutional amendment discussed later in this article, Special Session 2026E enacted several property tax modifications.

Beginning January 1, 2027, qualifying mobile home parks will receive a cap limiting annual assessment increases to 3 percent. To qualify, at least 75 percent of the park’s lots must be rented under leases of one year or longer, and property taxes must be passed through to residents pursuant to lease provisions. Mobile home park operators should review lease language and occupancy structures to determine eligibility.

The Legislature also expanded an existing property tax exemption available to military personnel by extending coverage to additional military operations occurring between 2023 and 2025. Associated refund opportunities are also authorized.

Another taxpayer-friendly provision addresses federal employees stationed outside Florida. Previously, concerns existed regarding the continued availability of homestead exemption benefits when federal employees temporarily rented their Florida residences during overseas assignments. The new legislation protects homestead status under these circumstances, eliminating a potentially costly unintended consequence of federal service.

Florida’s popular Save Our Homes portability benefit also received an expansion. Taxpayers now have three years, rather than two, from abandonment of a prior homestead to transfer accumulated portability benefits to a new homestead property. Practitioners should nevertheless remind clients that portability is not automatic and still requires timely filing of Form DR-501T with the appropriate county property appraiser.

Real estate transparency was another legislative focus. Online real estate listing platforms must now display estimated property taxes associated with listed properties. Given the significant variation in Florida property tax burdens resulting from exemptions, millage rates, and assessment limitations, these disclosures may help purchasers better understand future ownership costs.

Agricultural classification rules also received refinement. Compost derived entirely from agricultural activity and regulated by the Department of Environmental Protection now qualifies for agricultural classification treatment. Additionally, fruit and vegetable packinghouses located on or adjacent to agricultural property will be incorporated into average yield calculations rather than separately assessed. These changes may benefit agricultural operations seeking to preserve favorable tax treatment.

Several administrative property tax provisions were also enacted. County value adjustment boards may now hear appeals involving timely filing of tangible personal property tax returns. Certain children’s services special districts are exempt from community redevelopment agency tax increment financing contribution requirements. Additionally, certain special districts seeking millage increases must now obtain unanimous approval, supermajority approval, or voter authorization depending upon governance structure.

Tax Credit Programs

The Child Care Tax Credit Program was extended through fiscal year 2026-27, preventing an interruption in available credits and maintaining incentives for qualifying child care investments and contributions.

The legislation also modified the ordering rules governing insurance premium tax credits. Although highly technical, changes to credit ordering can materially affect tax liability calculations and utilization strategies for insurance companies operating in Florida. Practitioners representing carriers should carefully model the impact of the revised ordering provisions before preparing future returns.

The Strong Families Tax Credit Program also received significant revisions. Individual taxpayers are now subject to a $2 million annual contribution cap per eligible organization. Organizations themselves are limited to receiving $10 million annually through the program. At the same time, the Legislature authorized an additional $13.1 million in aggregate available credits for fiscal years 2026-27 and 2027-28. Businesses that historically concentrated contributions with a single organization may need to diversify future contributions among multiple eligible recipients.

Tax Administration Developments

Several tax administration changes may prove particularly relevant to practitioners involved in controversies and refund claims.
School district levy measures will now automatically appear on the next eligible general election ballot, eliminating the need for separate county-called elections. While largely procedural, the change simplifies the process for future school district funding initiatives.

More significantly, refund applications will accrue interest after 90 days from completion of the application process. This interest provision extends to situations in which a taxpayer successfully supplements a previously challenged refund claim with additional supporting documentation. The change provides taxpayers with additional leverage when pursuing delayed refund requests and may encourage more efficient administrative processing.

Documentary Stamp Tax Changes

Documentary stamp taxes received relatively limited substantive revisions, but several provisions warrant attention.
The temporary exemption for certain small, non-interest-bearing alarm system financing agreements was extended through June 30, 2028. Businesses utilizing these financing arrangements should continue reviewing eligibility requirements to ensure proper treatment.

The Legislature also redirected documentary stamp tax revenues toward several infrastructure and environmental initiatives. Annual distributions now include $60 million to the Florida Rail Enterprise, $15.2 million to the Small Counties Road Assistance Program, and $60 million to the C-51 Reservoir Project supporting Everglades restoration efforts. The Small Counties Outreach Program also received an additional $20 million annually.

While these provisions do not directly alter taxpayer liability, they demonstrate the Legislature’s continued reliance on documentary stamp tax revenues as a funding source for transportation and environmental priorities.

Pari-Mutuel Tax Changes

Florida’s gaming industry also received several tax-related adjustments.

Certain slot machine operators meeting specific constitutional and geographic requirements are now exempt from the annual $2 million licensing fee. Additionally, the slot machine revenue tax rate was reduced from 35 percent to 34 percent.
Perhaps more impactful is the reduction in the gross receipts tax imposed on cardroom revenues, which declined from 8 percent to 5 percent. For qualifying operators, this reduction may significantly improve profitability and operational economics.
Because eligibility requirements vary among facilities, practitioners advising gaming clients should carefully review the statutory criteria applicable to each tax benefit.

Implications for Practitioners in Florida’s Evolving Tax Landscape

Florida’s 2026 special sessions produced one of the most consequential collections of tax legislation in recent years. From permanent sales tax holiday provisions and expanded property tax benefits to revised tax credit programs and gaming tax reductions, the legislation touches nearly every major area of Florida taxation.

For practitioners, the primary takeaway is that many of these changes require immediate attention. Retailers must update point-of-sale systems, property owners should evaluate eligibility for newly expanded benefits, insurance companies should reassess tax credit utilization strategies, and advisors should monitor forthcoming Department of Revenue guidance implementing various provisions.

As Florida continues to experience rapid population growth and evolving fiscal priorities, the 2026 special sessions demonstrate the Legislature’s willingness to use tax policy as a tool for economic development, consumer relief, infrastructure funding, and property tax reform. Tax professionals who understand these changes will be best positioned to help clients navigate the state’s increasingly dynamic tax landscape.