In a major win for Florida's commercial real estate market,
Gov. Ron DeSantis signed Florida House Bill (HB) 7031, eliminating
both the State Business Rent Tax and County Surtax on commercial
leases effective Oct. 1, 2025. This change will significantly
reduce occupancy costs for commercial tenants statewide, making
office, industrial and retail space throughout Florida more
affordable and business-friendly.
Since 1969, Florida has required landlords to pay sales tax on
commercial lease payments. These taxes apply not only to base rent,
but also to additional rent charges passed through to tenants, such
as common area maintenance, utilities, insurance, real estate taxes
and property management fees. Landlords generally require these
taxes to be paid by tenants, increasing the overall cost of
occupancy.
