Business Rent Tax Reduction to Take Effect in June

Business owners in Florida have reason to celebrate as a significant reduction in the state's commercial lease sales tax is set to kick in earlier than expected. Originally scheduled for July, the reduction will now commence on June 1, providing a timely boost for the state's economy.

Florida's commercial lease sales tax, commonly referred to as the Business Rent Tax, will undergo a notable decrease from 4.5% to 2.0%. This move is projected to deliver substantial tax relief to Florida employers, with estimates suggesting a relief of at least $1 billion.

The decision to expedite the tax reduction comes as welcome news to many in the business community. "By slashing Florida's commercial lease sales tax by more than half, we are easing the strain on Florida employers, making it easier for them to grow their business, hire new employees, and continue to thrive," remarked Florida Secretary of Commerce, J. Alex Kelly.

This reduction marks a significant milestone in ongoing efforts to support Florida's business landscape. Advocates, including Florida Realtors®, have long pushed for a decrease in the state sales tax rate applied to the rental, lease, or license of real property. Previously set at 6%, the rate will now stand at 2.0% following this 2.5% reduction, representing the largest cut in the Business Rent Tax since advocacy efforts began.

The impact of this tax reduction is expected to be far-reaching. Since 2019, over 2.9 million new businesses have been established in the state, with a staggering 2.5 million of them emerging since January 2020. This reduction in the commercial lease sales tax is poised to further stimulate business growth and investment across Florida.

As June approaches, businesses across the state are gearing up to take advantage of this favorable tax environment. With more funds freed up for expansion and innovation, the stage is set for a dynamic period of economic growth and prosperity in the Sunshine State.