Florida lawmakers approved a bill Wednesday that would lower the state’s property tax rate by half, while also lowering the state income tax rate from 5.75 percent to 4.25 percent.
The Senate Finance Committee approved the measure by a voice vote, and it’s expected to become law by the end of the year.
It’s a dramatic reduction from the 3.5 percent increase that Gov.
Rick Scott and Senate President Don Gaetz pushed for in the wake of Hurricane Matthew.
The bill would lower Florida’s property taxes by 1.25 percentage points for people making more than $125,000 a year and 2.25 points for those making more that $200,000.
The bill would also cut the state sales tax by 0.5 percentage points.
It’s the first major property tax cut in years.
It also includes a 1.5-percent increase to the state medical and occupational licenses, which will take effect on April 1.
It also allows businesses to apply for up to five years of tax credits, up from the current three years.
Florida voters rejected Scott’s $2.3 billion tax increase last November.
Scott is a big supporter of his state’s income tax, which he has long opposed.
The tax cut passed the House on Tuesday and the Senate on Wednesday.
The Senate will vote on the bill this week.