Florida has officially repealed its nearly 60 year old Business Rent Tax (BRT). It was the only state with such a tax which required companies to pay sales tax on their commercial leases. Governor Ron DeSantis signed the measure into law earlier this year as part of a $1.3 billion tax relief package.
The repeal took effect October 1.
It eliminates the final 2% sales tax on commercial leases. It was first imposed in 1968, and the tax climbed as high as 6% before lawmakers began incrementally reducing it in recent years. By eliminating the tax, Florida businesses can expect to save an estimated $2.5 billion annually.
“We don’t have an income tax, and we will never have an income tax here. We have eliminated the commercial rent tax that was not good for small business,” DeSantis said during a recent stop in Jacksonville. His economic policies focus on reducing taxes and helping boost economic growth from the family level to statewide.
The change in policy also may improve Florida’s economic standing. Some experts say that this change is a major step forward for making businesses in Florida competitive.
“Local businesses create the jobs families need to thrive, and communities need to grow. Currently, Florida is the only state charging a tax on commercial leases. By eliminating this tax on the rent businesses pay for their operations, we are helping keep Florida a competitive place to start and grow a business,” said Senator Ed Hooper (R-Clearwater), Chair of the Senate
Committee on Appropriations.
Business Tax Relief
Supporters highlight the repeal gives small and mid-sized businesses more capital to invest, and it helps the families save resources. The money can be reallocated to hiring employees and expand operations. Landlords also get a break, as they were in charge of the administrative burden of collecting the tax, DeSantis emphasized that Florida’s fiscal position made the cut possible.
The Governor pointed to the state’s AAA credit rating, record rainy day fund, and reduced debt levels, noting that tax cuts have not come at the expense of education, infrastructure, or environmental projects.
“We’ve been able to do all those things in record amounts… and we’re proud of that. We’re going to keep it going,” Governor DeSantis affirmed.
