On Monday, Governor Ron DeSantis signed House Bill 7031, enacting a landmark $1.3 billion tax relief package that includes the full repeal of Florida’s Business Rent Tax (BRT)—a long-standing goal for Florida Realtors® and the business community. The elimination of the BRT will take effect on October 1, 2025.
Once fully phased out, the end of the BRT is expected to save commercial tenants across Florida approximately $2.5 billion annually. This move is seen as a significant step toward making Florida more attractive for business development and expansion. The repeal applies not only to the state sales tax on commercial leases but also to any local discretionary sales surtaxes that counties may impose.
Removing this tax is expected to free up capital for businesses to invest in growth—enabling them to hire more workers, purchase equipment, enhance employee benefits, and raise wages.
“Local businesses create the jobs families need to thrive, and communities need to grow,” said Senator Ed Hooper (R-Clearwater), chair of the Senate Committee on Appropriations. “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.”
Florida has taxed commercial lease payments since 1969, initially at 4%. The rate rose over time in line with increases to the state’s general sales tax, ultimately reaching 6%. The tax applied not just to base rent but also to payments made by tenants on behalf of landlords, such as mortgage costs, property taxes, or insurance. It also extended to a wide range of commercial properties, including offices, retail spaces, meeting rooms, parking spots, and even licenses for vending or newspaper machines.
The repeal of the BRT marks a historic shift in Florida’s tax policy, positioning the state to foster stronger economic growth and remain competitive in attracting and retaining businesses.
