The State of Florida Senate Finance and Tax Committee is in support of reducing commercial real estate lease tax. The bill (SB 140) recommends reducing the current 6% tax on commercial real estate leases to 5%. This reduction makes Florida even more attractive, in addition to the perfect weather and beautiful beaches, for homeowners and business owners.
Under the bill, the cut would take effect January 1, 2016. Reduction in the state tax commercial real estate lease percentage will allow Florida to compete for businesses to move to the state.
Governor Scott said, “This part of our Tax Cut Agenda is a $100 million reduction in the sales tax on commercial rent, which costs businesses about $1.4 billion per year. This reduction will make it more affordable for businesses to lease space, so they can keep more of the money they earn and create more jobs. Florida is the only state that imposes this tax, and we must keep working to make Florida the best place in the world to start and grow a business.”
Sherri Meadows, President of the Florida Realtors said, “Governor Scott’s proposed reduction in this tax will help economic development councils and industry groups attract new businesses to their regions. It will also begin to eliminate the unfair double taxation that occurs when tenants are forced to pay sales tax on property taxes collected as part of their lease.”
The economic impact of a $100 million reduction in this tax would provide over $500 million in value to Floridians in terms of jobs and economic activity. To discuss how this may impact your decision about moving your family and businesses to South Florida, please contact Rob Hamman, Sperry Van Ness Commercial Advisors at Robert.firstname.lastname@example.org or the luxury waterfront specialists at Waterfront Properties and Club Communities at INFO@wfpcc.com.