Understanding the Impact of HB 7031 on Commercial Real Estate in Central Florida
- TDSCRE
- Sep 15
- 2 min read
Updated: Nov 12
The Repeal of the Commercial Rent Tax
On June 30, 2025, Governor Ron DeSantis signed HB 7031 into law. This significant legislation repeals the state sales tax on commercial real estate leases, effective October 1, 2025. This change marks a pivotal moment for businesses operating in Central Florida.
Florida has long been unique in taxing commercial lease payments. The commercial rent tax was first enacted in 1969. With the passage of HB 7031, Section 212.031 of the Florida Statutes will be repealed, eliminating this tax burden for businesses.
Why This Matters for Businesses
The repeal of the commercial rent tax is more than just a legislative change; it represents a shift in how Florida supports its business community. By removing this tax, the state aims to foster a more favorable environment for businesses to thrive.
Benefits of the Repeal
Cost Savings: Businesses will no longer have to factor the commercial rent tax into their operating expenses. This can lead to significant savings, especially for companies with large leases.
Increased Competitiveness: With reduced costs, businesses can invest more in growth and innovation. This could lead to job creation and a stronger economy in Central Florida.
Attracting New Tenants: The repeal may make Florida a more attractive destination for businesses looking to lease commercial space. This could lead to increased demand for commercial properties.
What Should Businesses Do Next?
As we approach the effective date of this change, it's essential for businesses to prepare. Here are some steps to consider:
Review Lease Agreements: Take a close look at your current lease agreements. Understand how the repeal will impact your financial obligations.
Consult Professionals: It's wise to consult with your accountant or attorney. They can provide tailored advice on how to navigate these changes effectively.
Stay Informed: Keep an eye on updates from the Florida Department of Revenue. They will provide guidance on the implementation of this new law.
The Future of Commercial Real Estate in Central Florida
The repeal of the commercial rent tax is just one of many changes affecting the commercial real estate landscape. As the market evolves, staying informed and adaptable will be key to success.
Embracing Opportunities
With the elimination of this tax, businesses have a unique opportunity to reassess their real estate strategies. Whether you are looking to lease, buy, or sell commercial property, now is the time to explore your options.
Building Relationships
At TDS Commercial Real Estate, we understand the complexities of navigating the commercial real estate market in Central Florida. Our goal is to be your trusted partner in achieving your property goals efficiently and stress-free.
If you're considering a move or simply want to discuss your options, don't hesitate to reach out. We're here to help you make informed decisions that align with your business objectives.
Conclusion
The repeal of the commercial rent tax is a significant development for businesses in Central Florida. As we approach the effective date, it's crucial to understand the implications and prepare accordingly.
This article is for informational purposes only and does not provide tax or legal advice. Please contact your accountant and/or attorney for consultation before implementing any legal or tax-related changes to your business.
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