Florida Ends 57-Year Tax on Commercial Leases Today
The state’s Business Rent Tax has officially been repealed after decades of advocacy by Florida Realtors, saving commercial tenants $2.5 billion annually.
TALLAHASSEE, Fla. — A decades-old state tax on commercial leases, known as the Business Rent Tax, will disappear today after 57 years on the books.
Florida Realtors® has been actively working for years to eliminate this tax, making it a longstanding legislative priority. Lawmakers approved the repeal as part of a larger tax bill in June.
The Business Rent Tax (BRT) began in 1968, when the state’s sales-tax rate was 4%. As the sales tax rose in the 1980s, so did the BRT, which eventually reached 6%. Over the past decade, legislators gradually lowered the rate until it hit 2% in June 2024.
Cutting the BRT means commercial tenants in Florida will be saving a total of $2.5 billion annually and represents an important milestone in the state’s efforts to become more competitive in attracting and growing businesses. This elimination includes both the state sales tax rate and the discretionary sales surtax that counties can levy on commercial leases. Removing the BRT provides Florida businesses with the capital to expand, hire more employees, buy new equipment, improve benefits and raise salaries.
“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,” Sen. Ed Hooper (R-Clearwater), chair of the Senate Committee on Appropriations, said in June.
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