Florida has officially ended its longstanding business rent tax, a move that is expected to reduce costs for businesses and stimulate economic growth in the state. Governor Ron DeSantis signed House Bill 7031 on June 30, repealing the tax that had been in place since 1969. This tax required businesses renting commercial space to pay an additional expense based on their lease, adding financial pressure on tenants.
The tax had been gradually reduced over recent years. It started at 6% and was incrementally lowered beginning in 2017, eventually reaching 2% by June 2024. The complete repeal of this tax takes effect on October 1.
“This is particularly helpful in specific sectors, like the office market, which was hit hardest by the COVID-19 pandemic,” noted experts. The removal of the tax is anticipated to enhance Florida’s economic activity by allowing businesses to allocate more resources toward wages, expansion, and service improvements.
Americans for Tax Reform (ATR), which has long advocated for eliminating this tax, commended Florida’s leadership and legislature for their efforts. ATR emphasized that ending this “harmful practice” positions Florida as “the most taxpayer-friendly state in the nation.”
Florida was previously unique in charging a statewide sales tax on commercial leases. With its repeal, Floridian businesses will no longer face this comparative disadvantage.
