Florida has officially eliminated its 57-year-old Business Rent Tax (BRT) on commercial leases, a move projected to save businesses $2.5 billion annually. This significant legislative change, championed by Florida Realtors, aims to enhance the state’s economic competitiveness and encourage business expansion.
Key Takeaways
- The repeal of the Business Rent Tax took effect on October 1, 2025.
- Businesses in Florida will save an estimated $2.5 billion each year.
- The tax had been in place since 1968, with rates fluctuating over the decades.
- Advocacy efforts by Florida Realtors and other business groups were instrumental in achieving the repeal.
A Long-Awaited Repeal
The Business Rent Tax, which had been a fixture of Florida’s tax code since 1968, has finally been abolished. This landmark decision is expected to provide substantial financial relief to commercial tenants across the state. Florida Realtors, a key advocate for the repeal, highlighted that this change removes a long-standing barrier for companies considering relocating or expanding within Florida.
Economic Impact and Business Benefits
The elimination of the BRT is anticipated to inject $2.5 billion annually back into Florida’s economy. This capital can be reinvested by businesses into various areas such as hiring more employees, purchasing new equipment, improving employee benefits, and increasing salaries. Small business owners, in particular, are expected to benefit from having more resources to grow and potentially lower costs for consumers, thereby strengthening local economies.
The Advocacy Journey
The effort to repeal the Business Rent Tax was a multi-year campaign, spearheaded by organizations like Florida Realtors and the MIAMI Association of REALTORS®. The movement gained traction after research revealed Florida was the only state imposing a sales tax on commercial leases. Lawmakers gradually reduced the tax over the past decade, culminating in its full repeal through legislation passed in June 2025.
What the Repeal Entails
Effective October 1, 2025, the repeal applies to all rent and license fees for commercial real property. However, rent covering periods up to September 30, 2025, remains taxable, even if paid after the repeal date. The repeal does not extend to short-term residential rentals, parking, or storage fees, which continue to be taxed under different provisions of Florida law.
Preparing for the Change
Businesses, landlords, and property managers are advised to update lease templates and accounting systems to reflect the removal of the BRT. Invoices for rent and common area maintenance should be reviewed to ensure that charges for occupancy periods after September 30, 2025, are no longer subject to tax. This proactive approach will help ensure that businesses immediately recognize the intended savings.
Sources
- Florida Ends 57-Year Tax on Commercial Leases Today, | Florida Realtors.
- Florida Ends Commercial Rent Tax in Major Win for REALTORS®, CommercialSearch.