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The only outlier tax in Florida is gone, as the state’s tax business rent has finally been eliminated.
On June 30, 2025, the Florida state legislature passed House Bill 7031, which would provide $1.3 billion in tax relief for local Florida businesses – going into effect October 1, this bill eliminates a tax unique to Florida and continues to bolster Florida’s tremendous record of being a state friendly to American businesses.
The commercial lease tax was first passed in 1969 at a rate of 5% which was later increased to 6%. The tax created an additional burden for Florida’s businesses, making commercial real estate more expensive and thus making it more difficult for these businesses to expand. However, beginning in 2017, the state began to realize the cost of this tax and began to reduce it. From 2017 to 2024, the rate was cut from 6% to 2%. And now the great state of Florida has taken the final step to eliminate the tax altogether. By eliminating this tax, businesses in Florida will be able to use that capital for higher wages, better equipment, or expansion.
Numerous legislators have worked to eliminate the tax and Governor DeSantis called for it to eliminated this year.
Americans for Tax Reform applauds Florida’s continued commitment to being one of the nation’s most business-friendly states and retaining its status of having some of the lowest tax burdens in the country.