TALLAHASSEE, Fla., May 15, 2019 — Florida Realtors®, the state’s largest professional trade association with more than 187,000 members, applauds Gov. Ron DeSantis’ signing into law House Bill 7123, which includes a .2% reduction to the state tax on commercial leases, known more commonly as the Business Rent Tax (BRT).
“Every single day, businesses both in and outside of Florida must face tough decisions due to the business rent tax, a tax no other state levies,” says 2019 Florida Realtors President Eric Sain, a Realtor and district sales manager with Illustrated Properties in Palm Beach. “Thank you to Governor DeSantis and our Legislature for the third-straight cut to this tax.”
With the signing of HB 7123, the new state tax rate on commercial leases will be 5.5%, down from its original 6% in 2017. In total, the three consecutive BRT cuts will save businesses an estimated $156 million each year they can use to expand, hire more employees, improve benefits and raise salaries.
The BRT cut contained in HB 7123 will become effective on Jan. 1, 2020.