Drew Dixon
Now that the Florida Legislature has approved a bill eliminating the business rental tax in the state, a small-business advocacy group is increasing pressure on Gov. Ron DeSantis to sign the measure.
The National Federation of Independent Business (NFIB) already applauded lawmakers and is now urging to get the bill (HB 7031) signed. The tax-cut package has been forwarded to DeSantis.
“The elimination of the business rent tax is something Florida small businesses have worked toward for several years, and now it is finally a reality,” said Bill Herrle, NFIB Florida Executive Director. “Our members encourage Gov. DeSantis to sign the tax cut package, which will permanently eliminate the business rent tax. This is historic legislation that continues to make Florida one of the best states in the nation to own a small business.”
According to NFIB’s latest survey, taxes rose as the number one top problem for small business owners nationwide. The business rent tax elimination will take effect on Oct. 1 and would provide immediate relief to small businesses across Florida.
The measure ends taxes that businesses pay on rental space or buildings. It’s a move that the NFIB, along with small-business owners in Florida, have been arguing to get done for about a decade.
The measure is a significant one that will reduce Florida’s tax revenue. The elimination of the business rent tax is expected to result in approximately $905 million in reduced general revenue for the state. But the tax was an assessment that no other states charged.
Before eliminating that tax, lawmakers had been gradually reducing the levy for years. In recent years, the Legislature steadily rolled back that rate of that tax and last year set the rate at 2% before wiping it out in this year’s Session, which just concluded.
To compensate for some of the lost revenue, state lawmakers proposed that local governments recoup some of the missing funds through local taxes.
Some officials in different counties and the Florida Association of Counties argued they should still be able to levy local sales taxes, which were approved by voters in local referendums. The Legislature’s tax relief plan limits local governments’ ability to collect that.
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Jacob Ogles of Florida Politics contributed to this report.
