SESSION WATCH
Superseded — its companion passed HOUSE · SESSION 2026

No. HB 723

Rural Counties
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SPONSOR
Abbott
FILED BY
Shane Abbott — District 5, Republican [search donations]
EFFECTIVE
7/1/2026
COMPANION
CS/HB 273 — HB 723 was set aside and its companion carried the policy

Filed under Taxes & Budget.

PROVIDED SUMMARY

Rural Counties; Provides exemption from sales & use tax for industrial machinery & equipment used by wholesalers in fiscally constrained counties; prohibits state from purchasing certain land in fiscally constrained county; requires DEP to provide certain explanation to fiscally constrained county; increases amount of annual appropriation to Small County Road Assistance Program; authorizes specified amount from State Transportation Trust Fund to be used to fund Small County Outreach Program; requires AHCA to determine which providers in hospitals located in rural areas are essential Medicaid providers; creates Rural District Graduate Placement Incentive Pilot program within DOE; subject to legislative appropriation, requires DOE to provide certain bonus to school district or charter school located in fiscally constrained county; provides for program requirements & expiration; requires SBE to adopt rules. APPROPRIATION: Indeterminate

Full bill text →

Plain English Summary

AI-GENERATED
Exempts rural food wholesalers from sales tax on machinery.

Food wholesalers in fiscally constrained counties no longer pay sales tax on industrial machinery and equipment used in their operations. This exemption applies to tangible property with a depreciable life of at least three years.

The state is prohibited from purchasing land in a fiscally constrained county if federal and state-owned lands already exceed 40 percent of the county's total land area, unless the county approves the purchase.

The Small County Road Assistance Program funding increases from $25 million to $50 million annually, and a new $50 million annual allocation is created for the Small County Outreach Program.

School districts in fiscally constrained counties may receive bonuses for increasing high school graduation rates, industry certification attainment, and local employment of graduates, subject to legislative appropriation.

KEY PROVISIONS
§ 1 Sales Tax Exemption for Wholesaler Equipment majors. 212.08(5)(w)

AICreates a new sales and use tax exemption for industrial machinery and equipment used by food wholesalers in fiscally constrained counties.

“Industrial machinery and equipment purchased by a food establishment that is manufacturing, processing, packing, holding, producing, or selling food at wholesale at fixed locations” bill text, line 73 →
§ 2 State Land Purchase Prohibition majors. 216.0153(3)(a)

AIProhibits the state from purchasing land in a fiscally constrained county if federal and state-owned lands exceed 40 percent of the county's total land, unless the county approves the purchase.

“The state may not purchase any land in a fiscally constrained county as defined in s. 212.08(5)(w)1. if the combination of federal- and state-owned lands is greater than 40 percent” bill text, line 128 →
§ 3 DEP Land Purchase Analysis moderates. 216.0153(3)(b)

AIRequires the Department of Environmental Protection to conduct an analysis and provide a detailed written explanation to a fiscally constrained county within 90 days if the county requests it regarding a state land purchase.

“The Department of Environmental Protection shall conduct an analysis and provide a detailed written explanation to the fiscally constrained county within 90 days.” bill text, line 139 →
§ 4 Small County Road Funding Increase moderates. 339.2816(3)

AIIncreases the annual appropriation from the State Transportation Trust Fund for the Small County Road Assistance Program from $25 million to $50 million starting in fiscal year 2026-2027.

“Beginning in fiscal year 2026-2027, up to $50 million annually from the State Transportation Trust Fund may be used for the purposes of funding the Small County Road Assistance”
§ 5 Small County Outreach Program Funding moderates. 339.2818(9)

AIAuthorizes at least $50 million annually from the State Transportation Trust Fund to fund the Small County Outreach Program starting in fiscal year 2026-2027.

“Beginning in fiscal year 2026-2027, and annually thereafter, at least $50 million from the State Transportation Trust Fund may be used to fund the Small County Outreach Program.” bill text, line 155 →
§ 6 Rural Hospital Medicaid Essential Provider Status moderates. 409.975(1)(a)

AIDesignates hospitals located in rural areas as essential Medicaid providers, requiring managed care plans to contract with them or pay 110 percent of the Medicaid rate if they do not.

“Hospitals located in rural areas.” bill text, line 194 →
§ 7 Rural District Graduate Placement Incentive moderates. 1011.79(2)

AICreates a pilot program requiring the Department of Education to provide a bonus to school districts or charter schools in fiscally constrained counties for increasing student graduation, certification, and local employment rates.

“the Department of Education shall provide a bonus to a school district or charter school located in a fiscally constrained county as defined in s. 212.08(5)(w)1. for increasing the” bill text, line 229 →
TIMELINE
3/13/2026
Died in Ways & Means Committee; Companion bill(s) passed, see...
1/13/2026
1st Reading (Original Filed Version)
12/16/2025
Now in Ways & Means Committee
12/16/2025
Referred to Budget Committee
12/16/2025
Referred to Commerce Committee
12/16/2025
Referred to State Affairs Committee
12/16/2025
Referred to Ways & Means Committee
12/10/2025
Filed
2 EARLIER →
STATUTES IT CHANGES
s. 212.08
+251 / −0
s. 215.971
+73 / −0
s. 216.0153
+120 / −0
s. 339.2816
+3 / −14
s. 339.2818
+29 / −0
s. 409.975
+6 / −0