Florida's House Bill 7029, introduced on April 25, 2025, is making waves as it seeks to tighten the screws on tax evasion in the Sunshine State. The bill proposes a tiered penalty system for individuals who fail to report taxes, escalating from misdemeanors to felonies based on the amount of unreported taxes.

Under the new legislation, a first offense could lead to a misdemeanor, but repeat offenders face serious consequences: a second offense could result in a first-degree misdemeanor, while a third or subsequent offense could escalate to a third-degree felony. The stakes rise significantly with the amount of unreported taxes; for instance, failing to report $100,000 or more could lead to a first-degree felony charge.

The bill aims to address a growing concern over tax compliance, with lawmakers arguing that stricter penalties are necessary to deter tax evasion and ensure fair contributions to state revenue. Proponents believe that the enhanced enforcement measures will not only increase tax compliance but also bolster state funding for essential services.

However, the bill has sparked debates among lawmakers and advocacy groups. Critics argue that the harsh penalties could disproportionately affect low-income individuals who may struggle with tax complexities. They warn that the legislation could lead to unintended consequences, such as driving individuals further into financial distress.

As the bill moves through the legislative process, its implications could be far-reaching. Experts suggest that if passed, it may lead to increased scrutiny of tax filings and a potential rise in audits, impacting both individuals and businesses across Florida. The outcome of House Bill 7029 will be closely watched as it could set a precedent for how tax compliance is enforced in the state moving forward.