Florida's 57-Year Commercial Rent Tax Is Gone: What It Means for Your Lease
The Floridant/10334911

HIALEAH, Fla. - Floridant -- For 57 years, Florida was the only state in the country that charged a sales tax on commercial leases. That changed on October 1, 2025, when House Bill 7031, signed by Governor DeSantis on June 30, 2025, eliminated the tax entirely.

Mason Sharpe, Esq., a Florida-licensed attorney and principal of Sharpe Properties — a commercial real estate company owning and managing industrial and retail properties across Miami-Dade and Broward Counties — has published a detailed analysis of the repeal and its practical implications for tenants and landlords throughout South Florida.

What the Repeal Means in Real Dollars

Under the old law (F.S. Section 212.031), the tax applied not just to base rent but to every dollar billed through the lease: common area maintenance, utilities, insurance contributions, and property tax pass-throughs. Most Miami-Dade tenants paid a combined 3% rate — the 2% state rate plus the 1% Miami-Dade local discretionary surtax.

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The savings are automatic and immediate. No lease amendment was required. No tenant action was needed. For a business paying $8,000 per month in total occupancy costs, that is $2,880 per year — $14,400 over a five-year lease term — staying in the business rather than going to Tallahassee.

Statewide, Florida Realtors estimates commercial tenants are saving $2.5 billion annually.

The Landlord Perspective

Sharpe, who manages industrial and retail tenants across South Florida, notes that the repeal benefits property owners as well: "My revenue did not change on October 1, 2025. I collect exactly what I was always owed. But my tenants keep more of their money. A financially stronger tenant is a better tenant — and that is good for everyone in this transaction."

What It Means for the South Florida Market

Florida now matches Texas, Georgia, and North Carolina at a 0% commercial lease tax rate. For years, site selection consultants used Florida's commercial rent tax as an argument against locating businesses here. That argument is gone.

The full article — including a savings table, the history of the 15-year repeal campaign, and practical notes for both tenants and landlords — is available at: https://www.sharpeproperties.com/florida-commercial-rent-tax-repeal/