Business owners could be about to see major relief
On Thursday, Florida officially became the last state to repeal its business rent tax. The landmark decision is a momentous win for the commercial real estate sector, a news release highlighted.
The law goes into effect on October 1 and is expected to result in a projected savings of $904.8 million for businesses during the upcoming fiscal year.
The tax, which had been in place since 1968, was steadily reduced over many years through the advocacy of Building Owners and Managers Association (BOMA) Florida, a coalition of local associations representing over 1,000 members. The tax had been as high as 6% but was reduced to 2% last year before its final repeal in the new state budget.
According to BOMA Florida, the elimination of the tax is expected to generate a significant return for the economy. The group had long argued that the tax was an obstacle to economic development and job creation, putting Florida at a disadvantage compared to other states.
“Florida is the only state in the US that still imposes a statewide sales tax on business rent, and its elimination is a huge step forward for Florida and the country,” said Luci Smith, chair and chief elected officer of the BOMA International.
“As a proud Floridian myself, I’ve seen the incredible effort that’s taken place over many years to bring down this tax, and I’m so proud of both BOMA Florida and the state government for finally getting this done.”
Amanda Davis, president of BOMA Florida, also commented on the repeal’s impact. “The repeal of the business rent tax will directly help Florida businesses while producing economic benefits for the entire state,” she said.
Meanwhile, Florida’s commercial real estate market continues to boom. Driven by the migration of financial and tech executives and favorable tax policies, retail vacancy rates in South Florida have plummeted, and occupancy rates are near historic highs, reinforcing the state’s rising stature as a business magnet.
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