Florida Repeals Sales Tax on Commercial Leases

Tampa Bay businesses are celebrating the end of an era. A decades-long burden on Florida’s commercial tenants and landlords is set to end this month.

On September 30, Florida’s sales tax on commercial leases will officially expire. Florida was the only state in the nation to impose such a levy. For business owners across Tampa Bay, the change represents relief and stability.

According to a Tampa commercial real estate agent with Florida ROI Commercial Brokerage, the repeal of the sales tax “marks a milestone for our state’s business community, and it deserves a celebration.” To celebrate, the Florida ROI team hosted a “Lease Tax Repeal Party” on October 1 at New World Brewery in Tampa. The event was open to both commercial landlords and tenants. Florida ROI Commercial Brokerage is headquartered in downtown Tampa and represents tenants and property owners in sales, leasing, and property management.

For years, the lease tax had been constantly changing. In Hillsborough County, the last rate was at 3.5%, but in previous years, it surged to as high as 8.2%. The fluctuations increased costs and created uncertainty into contracts and long-term planning.

Of course, the lease tax was a financial burden, but the constant changes caused tensions as well for tenants, landlords, and property managers. For the most part, those in the commercial real estate field should be happy that the tax is going away.

The repeal is expected to free up capital for businesses of all sizes, but small and mid-sized companies will see the most relief, as lease expenses tend to make up a significant overhead cost. The repeal also removes a barrier to attracting new companies to Florida. This makes the state more competitive with others.

The repeal is not just about saving money. Real estate experts say it shows business leaders that Florida is serious about fostering entrepreneurship.

Benefits of the Repeal

The sales tax repeal will benefit those in the commercial real estate sector in many ways:

• Increased tenant demand. With leasing costs lower, businesses are more likely to expand or move into commercial spaces. This can reduce vacancies and give property owners more stability in rental income.
• Stronger negotiating position for landlords. Without the extra tax burden, landlords may find it easier to finalize lease agreements. The repeal makes lease terms more attractive to tenants.
• Better long-term planning. The unpredictability of fluctuating tax rates previously made budgeting challenging for both landlords and tenants. Eliminating this variable helps with forecasting.
• Competitive edge for Florida’s market. Investors comparing markets across state lines will see Florida as more appealing now. This can drive more capital into the state’s commercial real estate sector.
• Encouragement for small businesses. Many small and mid-size companies will benefit most, as leasing becomes more affordable. This broadens the tenant pool for landlords.

Learn More About Commercial & Retail Leases

While the sales tax on commercial leases has gone away, there are still many variables to consider when drafting a lease. Leases differ from other contracts and there are numerous critical issues to be considered.

Let Orlando commercial & retail lease lawyer B.F. Godfrey from Godfrey Legal guide you. We can provide you with the legal support you need. Schedule a consultation today by calling (407) 890-0023 or filling out the online form.

Source:

tbbwmag.com/2025/09/23/florida-commercial-lease-tax-repeal/