Since 1969, Florida has been the only state in the country to impose a commercial lease tax—a tax that puts local businesses at a competitive disadvantage compared to every other state. But now, major change is in
reach.

Governor Ron DeSantis’ newly released “Focus on Fiscal Responsibility” budget for 2025-26 outlines a plan to fully eliminate the Florida-only business rent tax over the next two years:

✅ 2026 – A 1% reduction
✅ 2027 – Full elimination

Governor DeSantis sees this as a way to free up billions for Florida businesses—money that could be spent hiring employees, reinvesting in growth, and strengthening local communities.

How We Got Here

In advance of 2017, business and real estate groups—including the Lakewood Ranch Business Alliance, Florida Realtors, and local Chambers of Commerce—have advocated for this tax to be reduced or eliminated. The effort has paid off:

• 2017 to 2024 – Gradual reductions in the state’s lease tax with local businesses enjoying a .5% tax reduction
• June 1, 2024 – State portion dropped by 3.5% saving businesses $1 billion annually
• 2026-2027 – The Governor’s proposal offers full elimination of this tax in two phases.

Local county sales taxes across Florida range from 0.5 to 1.5% and would likely remain unless new funding sources are identified. The Counties can not collect the tax if the State does not. While the state tax is trending toward elimination, Counties have yet to signal their stance. Since they still benefit from a portion of this revenue, they may be waiting to see if an alternative funding source emerges before supporting full repeal. Sarasota and Manatee Counties currently collect a 1% business tax.

What’s Next? Your Voice Matters!

The Governor’s budget recommendation is a step in the right direction, but it’s not final—the Florida Legislature must approve it. During my recent trip to Tallahassee, the Legislators were not optimistic about this relief occurring. That’s where YOU come in.

Call to Action: Contact your local lawmakers and urge them to fully eliminate the business rent tax. Eliminating this tax will bring Florida one step closer to the nation’s #1 business tax climate.

This link from Florida Commerce, makes it easy: https://flchamber.quorum.us/campaign/108906/

Sources:

• Florida Commerce, Press Release, April 8, 2024 and February 3,20205
• Greenberg Traurig, “Florida State Sales Tax Rate on Most Commercial Leases Reduced to 2% Beginning June 1,” Marvin A. Kirsner, May 23, 2024.

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