Florida is set to eliminate its long-standing sales tax on commercial leases starting October 1st, marking a significant shift for businesses across the state. This change, part of a broader tax package, is expected to inject substantial savings back into the state’s economy. Alongside this major tax cut, nearly thirty other new laws will also take effect, impacting various aspects of life and business in Florida.
Key Takeaways
- The 57-year-old business rent tax will be abolished on October 1st.
- This elimination is projected to save Florida businesses approximately $1.15 billion in the current fiscal year.
- Nearly 30 new laws will also be enacted on October 1st, covering a range of issues from criminal penalties to animal welfare and housing disclosures.
End of the Business Rent Tax
After more than a decade of advocacy from business groups, Florida will officially end its sales tax on commercial leases. This tax, often referred to as the business rent tax, has been in place for 57 years. Its elimination is a key component of a comprehensive tax package approved by lawmakers in June.
The Florida Chamber of Commerce has been a vocal proponent of ending this tax, highlighting it in their Florida 2030 Blueprint report nearly ten years ago. They argued that the tax made Florida less competitive compared to other states. At its peak, the tax generated around $3 billion annually. The Chamber’s President and CEO, Mark Wilson, stated that the removal of this tax will "lower the cost of doing business in Florida, which will help lower the cost of living here." The projected savings for businesses are substantial, estimated at nearly $1.15 billion for the current fiscal year, with expectations of reaching $1.53 billion in the next fiscal year. This influx of capital is anticipated to be reinvested into job creation, equipment upgrades, and enhanced customer service.
Other New Laws Taking Effect
In addition to the end of the business rent tax, October 1st will see nearly 30 new laws come into effect. These new statutes address a variety of societal and legal matters:
- HB 113: Increases criminal penalties for motorists who flee or attempt to elude law enforcement.
- HB 150 (Trooper’s Law): Establishes a third-degree felony offense for animal cruelty, specifically for restraining dogs outdoors during natural disasters.
- SB 168 (Tristin Murphy Act): Modifies the treatment of mentally ill individuals within the criminal justice system.
- HB 253: Enhances penalties for motorists using vehicle lights to impersonate law enforcement and for tampering with license plates.
- HB 687: Increases penalties for repeat offenses of serious crimes such as driving under the influence manslaughter and vehicular homicide.
- HB 777: Introduces measures to strengthen laws against luring or enticing children.
- SB 948: Mandates that landlords disclose flood risk information and past flooding incidents to prospective tenants.
- HB 1049: Raises penalties for harassing or retaliating against judges and other court officials.
- SB 1386: Imposes stricter penalties for individuals who assault or batter utility workers.
- SB 1804: Makes the sex trafficking of children under 12 or mentally incapacitated individuals punishable by the death penalty.
Sources
- Florida has many new laws hitting the books Oct. 1, Sun Sentinel.
- Florida sales tax on commercial leases ends next week – WFTV, WFTV.