Florida House proposes 5.25% tax on admission sales under HB 7031

House Bill 7031, introduced in the Florida State Legislature on April 2, 2025, proposes a significant adjustment to the taxation of admissions for various events. The bill aims to increase the sales tax on admissions from 5.25% to 6%, a move that has sparked considerable debate among lawmakers and stakeholders.

The primary purpose of HB 7031 is to generate additional revenue for the state by adjusting the tax rate applied to ticket sales for events such as concerts, sports games, and other entertainment activities. The bill stipulates that the increased tax will be collected at the point of sale, with clear requirements for ticket sellers to display the actual sales price and tax amount prominently.

Key provisions of the bill include a detailed framework for how the tax should be calculated, ensuring that it is based on the actual price paid by consumers after accounting for any federal or state taxes and fees. Notably, the bill specifies that certain admissions, particularly those for athletic events sponsored by educational institutions, will remain exempt from this tax increase.

The introduction of HB 7031 has led to notable discussions in the legislature, with proponents arguing that the additional revenue is essential for funding public services and infrastructure. However, opponents express concerns that the tax hike could deter attendance at events, potentially harming local economies that rely on tourism and entertainment.

Economic implications of the bill could be significant, as the increased tax may lead to higher ticket prices, which could affect consumer behavior. Experts suggest that while the state may benefit from increased revenue, the long-term impact on event attendance and local businesses needs careful consideration.

As the bill moves through the legislative process, it will likely face further amendments and scrutiny. Stakeholders from various sectors, including the entertainment industry and local governments, are expected to weigh in on the potential consequences of this tax increase. The outcome of HB 7031 could set a precedent for how Florida approaches taxation on entertainment and event admissions in the future.