State legislature trims lease tax for third time

Features

State legislature trims lease tax for third time
 
Published Monday, July 1, 2019
by Kevin McQuaid

Florida lawmakers have shaved the state’s commercial lease tax rate for the third time in as many years, this year down to 5.5% from 5.7%.

The business rent tax — Florida is the only state to have such a levy — is applied to commercial real estate leases and can cost companies tens of thousands of dollars annually.

That’s because the tax is paid in addition to both rent and common area maintenance charges.

Landlords and commercial real estate groups have advocated eliminating the tax as a way to fuel economic development and business relocations from other states.

Gov. Ron DeSantis is expected to sign the reduction bill into law, with an effective date of Jan. 1.

“This tax makes Florida’s development and commercial real estate sector less competitive,” says Yvonne Baker, a regional managing partner with Tampa-based commercial real estate brokerage firm Franklin Street and the Florida president of the National Association of Industrial and Office Parks (NAIOP) this year.

“It zaps money that businesses could otherwise invest in growth and job creation,” Baker adds.

NAIOP, a national group that comprises more than 19,000 members in North America, advocates on behalf of commercial real estate landlords and property owners.

The Florida Legislature first cut the business lease tax during its 2017 session, when the levy was 6%, in response to moves by several other states to drastically reduce or eliminate lease taxes altogether.


Send this page to a friend

Recent News

New Retailers Now Open at Town Center at Boca Raton

Additions include first-to-market, eco-friendly clothing and bedding brand Cariloha

Florida could get a new waterfront Publix with a dock for boats

A development company recently closed on property in Hollywood, which could include a three-story building with a Publix, a garage and a dock.

Walgreens will be first retailer in U.S. to test on-demand drone delivery

Walgreens is set to lift off and make history with a drone pilot in Virginia.