News Summary
Florida has officially repealed its long-standing business rent tax, marking a significant change in statewide legislation. The repeal, effective October 1, 2025, is expected to save businesses approximately $904.8 million in the upcoming fiscal year. Introduced through House Bill 7031 and backed by prominent organizations, this decision is anticipated to revitalize the commercial real estate sector by increasing occupancy rates and enhancing property values, ultimately fostering a more dynamic economic environment in the state.
Florida has officially repealed its business rent tax, a significant legislative change that will take effect on October 1, 2025. This repeal is projected to yield substantial savings for businesses across the state, amounting to an estimated $904.8 million in the upcoming fiscal year. The business rent tax had been in effect since 1968, with rates reaching as high as 6% before being gradually reduced to 2% through advocacy efforts.
The repeal was made possible through the passing of House Bill 7031, which benefitted from the support of various organizations, including the Florida Chamber of Commerce and Florida TaxWatch. Governor Ron DeSantis endorsed the repeal, viewing it as a step forward for Florida’s economic landscape.
Prior to this change, Florida was the only state in the U.S. to impose a statewide sales tax on business rents, although some cities had similar local taxes. The 2% rate was solidified after the state’s Unemployment Compensation Trust Fund reached pre-pandemic levels in March 2024, indicating a stable economic environment and paving the way for this legislative change.
The business rent tax applied to all commercial property rentals, excluding dwellings, agricultural properties, and rentals to government agencies. With its elimination, Florida’s commercial real estate sector anticipates a revitalization, bolstered by potentially increased demand for commercial space, which could lead to higher occupancy rates and improved property values.
Advocates for the repeal view it as a significant victory for the commercial real estate industry. The Building Owners and Managers Association (BOMA) Florida, which represents over 1,000 members, played a key role in the repeal movement. This organization recognized the positive implications of the tax elimination for Florida businesses, predicting that it would foster an environment conducive to growth and local entrepreneurship.
In recent times, Florida’s commercial real estate market has shown incremental growth fueled by an influx of professionals from the financial and technology sectors, attracted by the state’s favorable tax climate. This growth trend is also mirrored in the retail sector, where vacancy rates in South Florida have significantly decreased, approaching historic occupancy levels.
The economic ripples from this repeal are expected to be substantial. A study conducted by Florida Realtors indicates that the elimination of the tax is projected to generate $6 in economic activity for every dollar saved from the repeal. This statistic underscores the broader implications for businesses, property owners, and the state’s economy as a whole.
The environmental shift anticipated following the repeal reflects a move towards enhancing Florida’s competitiveness in retaining existing businesses and attracting new enterprises. This change is expected to leave a lasting impact on the state’s economic landscape, creating opportunities for growth across various sectors.
As Florida moves forward without the burdensome business rent tax, many anticipate that the benefits will extend far beyond immediate savings, contributing to a vibrant economic ecosystem that supports entrepreneurship and investment throughout the state.
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Author: STAFF HERE PETERSBURG WRITER
ST PETERSBURG STAFF WRITER The ST PETERSBURG STAFF WRITER represents the experienced team at HEREStPetersburg.com, your go-to source for actionable local news and information in St Petersburg, Pinellas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Grand Prix of St. Petersburg, Localtopia, and SHINE Mural Festival. Our coverage extends to key organizations like the St. Petersburg Area Chamber of Commerce and St. Pete Downtown Partnership, plus leading businesses in finance, manufacturing, and healthcare that power the local economy such as Raymond James Financial, Jabil, and Bayfront Health St. Petersburg. As part of the broader HERE network, including HEREJacksonville.com, HEREOrlando.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
