Big news for Florida’s commercial real estate market: Governor Ron DeSantis has officially signed HB 7031, a landmark law that permanently eliminates the 4.5% state sales tax on commercial lease payments, effective October 1, 2025.
This bold move is expected to significantly lower leasing costs and attract even more business investment across the state. Here’s what landlords, tenants, and property managers need to know.
Suggestion: Did you know a retail tenant in Orlando could save up to $5,000 per year thanks to this change?
On October 1, 2025, HB 7031 repeals Florida’s statewide 4.5% sales tax on commercial-lease payments. Whether you’re a restaurant owner or a boutique retailer, here’s what it means for your bottom line—and for landlords—across the Sunshine State.
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What Does HB 7031 Change?
Prior to this law, Florida was the only U.S. state to impose a sales tax on commercial lease payments. HB 7031 repeals the state-level 4.5% tax, offering a financial relief to:
- Office tenants
- Retailers
- Industrial and warehouse operators
- Commercial landlords and property managers
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Who Benefits Most?
This tax repeal will benefit both tenants and landlords:
- Tenants save thousands annually on base rent
- Landlords can offer more competitive lease terms
- Property managers see increased demand and fewer barriers to entry
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Are There Any Exceptions?
Yes — while the state sales tax is eliminated, local surtaxes may still apply depending on the county. Businesses should consult with a commercial real estate expert or tax advisor to calculate their final cost.
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Why It Matters for Florida’s Economy:
- Makes Florida more business-friendly
- Encourages expansion and relocation
- Boosts demand for retail, office, and warehouse leases
Curious how this law impacts your current or future lease?
Contact The List Orlando today for an expert review of your lease terms and available tax-saving opportunities.
