Florida lowers commercial lease sales tax rate, providing $1 billion in relief

TALLAHASSEE, Fla. – Starting June 1, Florida’s Commercial Lease Sales Tax rate will be reduced from 4.5% to 2%, providing employers with approximately $1 billion in tax relief.

The reduction is a result of “dedicated efforts to efficiently reach the threshold for lowering Florida’s Commercial Lease Sales Tax” which is part of legislation that was signed back in 2021, according to an announcement from FloridaCommerce.

The department said the fund was “nearly depleted” in 2020 due to an “increase in reemployment assistance benefits payments” and as a result the state began replenishing the fund in 2022.

The Florida Department of Revenue gave $90 million monthly to replenish the trust fund, which has reached the $4.1 billion threshold.

The department said since the threshold was met, the state is now able to reduce the tax.

“By slashing Florida’s Commercial Lease Sales Tax by more than half, we are easing the strain on Florida employers making it easier for them to grow their business, hire new employees and continue to thrive,” Florida Secretary of Commerce J. Alex Kelly said.

This past legislative session, lawmakers passed a $1.5 billion tax relief package which includes major tax holidays.

The department also announced that more than $1.5 million in funding is available to eligible organizations and local governments for “community planning and strategic economic development initiatives.”

$1.5 million is available through the Community Planning Technical Assistance Grant Program. Additionally, over $65,000 is available through the Competitive Florida Partnership Grant Program. 

The Community Planning Technical Assistance Grant Program is for municipalities, counties, and regional planning councils to “help communities address various planning initiatives, such as economic development, resiliency strategies and critical local planning issues.”

Since 2019, $4.7 million has been awarded to more than 90 communities through the Community Planning Technical Assistance Grant Program.

The Competitive Florida Partnership Grant Program is for municipalities, counties and regional planning councils to “create an economic development strategy through innovative planning and public engagement.”

The Competitive Florida Partnership Grant Program awarded 30 communities with $1.1 million.

The program is part of Gov. Ron DeSantis’ plan to “cultivate local economies and stimulate aggressive economic growth for small businesses,” the announcement said.