A Florida Chamber-backed bill that calls for lowering the sales tax on commercial leases by one percent passed unanimously out of the Senate Community Affairs Committee today.
SB 140, sponsored by Sen. Dorothy Hukill (R- Port Orange), will help keep the cost of doing business lower by reducing the financial impact on businesses that lease space. This will help Main Street small businesses and corporations that lease commercial space.
Currently, Florida is the only state in the country that charges a sales tax on commercial leases and in some instances, businesses are subject to “double” taxation through the tax imposed on commercial leases. Businesses may find themselves paying property taxes as well as an additional sales tax on the property tax charged as rent.
Visit our Targeted Tax Reform page to learn where we stand on Commercial Lease Taxes, Communication Services Taxes and more.