LEGISLATIVE UPDATE

During the 2026 Florida legislative session, these new laws were approved by the Florida Legislature and signed into law by the Governor:
Taxes:
Sales tax exemption for back-to-school shopping. From July 20th through August 20th, sales of the following items are tax-free:

  • Clothes, shoes, and accessories selling for $100 or less.
  • School supplies selling for $50 or less.
  • Computers and related accessories selling for $1,500 or less (personal use only; computers for businesses are still subject to tax).
  • Learning aids and jigsaw puzzles selling for $30 or less.

Sales tax exemption for home hardening products. Homeowners who purchase impact-resistant doors, garage doors, and windows to protect their homes from hurricanes and severe weather from July 1, 2026 through July 1, 2029 can get a sales tax refund on these purchases.

Proposed property tax reduction. If approved by Florida voters in November, this change to the Florida Constitution would increase the homestead exemption for non-school taxes to $150,000 in 2027 and to $250,000 in 2028 and after.

Sales tax exemption for hunting, fishing, and camping supplies. From September 1st through December 31st, sales of the following items are tax-free:

  • Ammunition, guns and their accessories, bows, and crossbows.
  • Tents selling for $200 or less.
  • Sleeping bags, portable hammocks, camping stoves, and camping chairs selling for $50 or less.
  • Lanterns and flashlights selling for $30 or less.
  • Tackle boxes selling for $30 or less.
  • Bait and fishing tackle selling for $10 or less ($20 if multiple items are sold together).

Construction:
Building permits no longer required for some residential jobs. Effective July 1, 2026 some residential construction jobs costing less than $7,500 will be exempt from the permitting and inspection process. However, all electrical, plumbing, mechanical, gas, and structural work will still need to be permitted and inspected. Work on a property partially or entirely located in a flood hazard area must still get a permit and be inspected.

To qualify for the exemption, the owner of the home or the owner’s contractor must submit a written request for exemption. The project cannot be divided into more than one project for the purpose of evading the requirements.

Qualified Contractors. This new law requires local governments to create a registry of qualified contractors that will be available to pre-certify certain development applications. The goal is to reduce the amount of time it takes local building departments to review applications and issue building permits by supplementing government staff with private sector contractors. These qualified contractors must be licensed engineers, architects, surveyors, or landscape architects.

Penalties for contractors who do not pay subcontractors timely. Starting July 1, 2026 a licensed contractor must pay subcontractors and suppliers within 45 days of receiving payment for the work or materials performed or supplied by the sub or supplier, or as provided in the terms of the contract. A contractor who knowingly or willfully violates this section is subject to discipline under section 489.129, Florida Statutes.

Miscellaneous Issues:
Elimination of the penny/rounding to nearest nickel. If the federal government stops making pennies, businesses can round cash transactions to the nearest nickel.
Rounding to the nickel does not apply to payments made using noncash methods (check, gift card, credit card, money order, etc.), and it does not alter the sales price or the amount of sales tax collected. The rounding method is:

  • If the final digit of a cash transaction ends in 1 or 2 cents, round down to zero.
  • If the final digit is 3 or 4 cents, round up to 5 cents.
  • If the final digit is 6 or 7 cents, round down to 5 cents.
  • If the final digit is 8 or 9 cents, round up to 10 cents.

Solicitation prohibited. Commercial solicitation is prohibited at any house that displays a sign saying This dwelling is designated private property. No commercial solicitation is permitted pursuant to section 501.062, Florida Statutes.

Insurance required for pest control businesses. Businesses renewing their pest control license will have to provide proof of liability insurance to the state in certain amounts specified by law.

FLORIDA LEGISLATURE REJECTS EXPANSION OF E-VERIFY TO SMALL BUSINESSES

Currently, Florida employers with 25 or more employees are required to run all new hires through the federal E-Verify database to verify that they are eligible to work in the United States. E-Verify is US government database that allows employers to search their employees’ names to see if they are legally allowed to work in the United States. Employers with more than 25 employees must certify their compliance with this requirement each year on their quarterly Florida reemployment tax return (RT-6) that is due in April.

In their recent legislative session, Florida lawmakers considered making small businesses with fewer than 25 employees run all their new hires through E-Verify to check their employment eligibility. Under the proposal, employers who hired new employees without using E-Verify first could be fined up to $1,000 per day.

This proposal was rejected and will not become law.

Reminder for all Florida employers: All Florida employers, including small businesses, are required to complete an I-9 form on new employees to verify their work eligibility. This requirement applies even if you use E-Verify on new employees.

The I-9 form must be completed within three business days after the employee starts work. This form is not sent to the government, but you are required to keep it on file along with any photocopies you made of the documentation the employee presented, for as long as the employee works for you.

When the employee leaves, keep their I-9 for either (a) one year from the date their employment ends or (b) three years after their first day of employment, whichever is later.