In a major victory for commercial real estate, NAIOP of Florida’s persistent and continued advocacy over several legislative sessions paid off this year when the state legislature took action to eliminate the statewide tax on business rent.

Since 1969, the state of Florida has applied a special tax on commercial rental payments, which once stood at 6%. As the only state in the country to apply such a tax, it has hindered the state’s economic growth, impacted businesses of all sizes, and undermined Florida’s market competitiveness with other states.

Brian DePotter, NAIOP of Florida’s current president, made the following statement:

“We commend Governor [Ron] DeSantis and the Florida legislature for their vision and leadership in eliminating this outdated and anti-competitive tax. This change will reduce costs for small and large businesses alike, encourage job growth, and make Florida an even more attractive destination for companies looking to invest and expand.”

The permanent elimination of the tax contained in House Bill 7031 will provide financial relief for tenants dealing with inflation and rising operating costs. Elimination of the tax also ensures that Florida remains competitive with other states in attracting and retaining private sector investments that drive economic growth and job creation.