Apr 22, 2021
NAIOP Florida Legislative Efforts
Result in Major Reduction to the Business Rent Tax
TALLAHASSEE, Fla. (April 20, 2021)
A significant cut to the Business Rent Tax – the sales tax on rents under commercial leases – is on the horizon.
The Florida chapters of NAIOP, the Commercial Real Estate Development Association, have long recognized that this tax, which is unique to Florida, is an undue burden on commercial landlords and tenants. Due in part to NAIOP’s continued advocacy over the past several years, incremental reductions have been achieved. Now, with the passage of SB50 on April 19, 2021, which enforces Florida’s existing sales tax on online purchases, a truly meaningful cut will be made.
The initial proceeds from the online sales tax will be directed to the unemployment tax fund for businesses. When that fund collects $4,017,000,000, which could occur as soon as 2023, the Business Rent Tax will automatically be reduced from 5.5% to 2.0%.
This is projected to save Florida businesses over $1,000,000,000 in taxes annually that can be reinvested into their companies, employees and communities.
“This success is a credit to NAIOP Florida’s tireless effort and validates our belief that the Business Rent Tax is bad for business. It is real progress toward our ultimate goal – the elimination of this onerous tax,” says Trey Wilson, NAIOP Florida’s 2021 President and a partner at the law firm of Driver, McAfee, Hawthorne & Diebenow, PLLC in Jacksonville.
Leadership from each of Florida’s five NAIOP chapters – Tampa, Central, Northwest, Northeast and South Florida – actively engaged lawmakers in multiple virtual visits and letter-writing campaigns during the 2021 legislative cycle. A central focus of those visits was lowering, and eventually eradicating, the Business Rent Tax.
Vince McCormack, President of NAIOP Northeast Florida and President of Perdue Office Interiors added “This is a huge win and leap forward for our industry and state in leveling the playing field for businesses. We are proud of our role in the reduction of the Business Rent Tax and look forward to carrying the momentum forward over the next several years.”
For more information contact NAIOP of NEFL VP’s of Public Affairs, Katie Kirchner, firstname.lastname@example.org (904) 242-2828 ext 42 or Justin Markley,
email@example.com (904) 367-2020 for more details