Scissors cutting a one dollar bill, cash money. Inflation, budget cuts and cost cutting concept


In a historic victory for the commercial real estate sector that promises to positively impact the economy, the state of Florida is eliminating its business rent tax — the nation's last remaining statewide tax on commercial leases. The recently signed state budget package marks the culmination of many years of effort by BOMA Florida, a coalition of BOMA local associations throughout the state consisting of more than 1,000 members representing office space and commercial buildings.

Thanks to the leadership of BOMA Florida, the state had been steadily chipping away at the sales tax on commercial leases, which has been in place since 1968. The tax had been as high as 6 percent and by last year had been reduced to 2 percent. The final repeal of the tax, which will take effect on October 1, will save businesses a projected $904.8 million in the next fiscal year. Congratulations are owed to the BOMA Florida coalition for leading the long-term advocacy effort. BOMA Florida tirelessly made the case that the elimination of the tax will generate a significant return for the economy, arguing that the rent tax was holding back economic development and job creation, and creating a competitive disadvantage for Florida compared to other states.

“Florida is the only state in the U.S. that still imposes a statewide sales tax on business rent, and its elimination is a huge step forward for Florida and the country,” says Luci Smith, Chair and Chief Elected Officer of the Building Owners and Managers Association (BOMA) International, and Director of Property Management at Link Logistics. “As a proud Floridian myself, I’ve seen the incredible effort that’s taken place over many years to bring down this tax, and I’m so proud of both BOMA Florida and the state government for finally getting this done.”

Amanda Davis, President of BOMA Florida and Real Estate Manager with CBRE in Jacksonville, believes that the repeal of the business rent tax will directly help Florida businesses, while also producing economic benefits for the entire state. 

She adds, “This achievement would not have been possible without the leadership of former Speaker of the House Lee Moffitt, and the steadfast support of Florida legislators who championed our efforts over the many years it took to repeal the tax on commercial rent.”