Goodbye Business Rent Tax: Lower Costs and Higher Growth Ahead for Florida 

For a long time, Americans for Tax Reform (ATR) has supported the elimination of Florida’s commercial lease tax. A policy that forces businesses renting space to pay a tax on that expense, an unnecessary burden on Florida’s otherwise business-friendly environment. 

Florida’s business rent tax, in place since 1969, has become a growing concern for businesses as the rate has climbed alongside the state’s general sales tax, eventually reaching 6%, and placing an extra financial burden on tenants leasing commercial space.  

Recognizing the strain this imposed, lawmakers began rolling back the tax in 2017, with incremental reductions bringing the rate to 5.8%, then 5.7%, and finally down to 5.5% by late 2019. Further reductions came in December 2023, when the rate was lowered to 4.5%, followed by another cut to 2% in June 2024. These changes reflected increasing momentum to eliminate the tax entirely. 

Now, the time has finally come to end this harmful practice. On June 30, Gov. Ron DeSantis signed House Bill 7031, officially ending Florida’s business rent tax. Florida was the only state to charge a statewide sales tax on commercial leases, putting Floridians and their businesses at a comparative disadvantage. 

Effective starting October 1, the repeal means that all commercial real estate leases, such as office, retail, and industrial spaces, will see a decrease in their monthly rent, freeing up capital for wages, expansion, and service improvements. According to experts in the region, this is particularly helpful in specific sectors, like the office market, which was hit hardest by the COVID-19 pandemic, and is expected to stimulate the state’s economic growth and broader economic activity. 

ATR applauds the great progress Florida’s leadership and legislature have shown in eliminating the tax and keeping the Sunshine State the most taxpayer-friendly state in the nation.