Florida’s business landscape experienced a major shake-up on October 1, 2025. The 57-year-old sales tax on commercial leases was officially repealed. For decades, Florida was the only state in the U.S. to impose this unique tax. Its removal has been hailed by commercial property owners, tenants, and economic development advocates alike.
A historic move for Florida’s economy
The tax, originally established in 1968, charged a state sales tax on the rental amount paid on commercial property. Landlords and commercial tenants across a variety of sectors—retail, office, and industrial—had long argued that it placed Florida at a competitive disadvantage compared to other states.
After years of lobbying by real estate professionals and business groups, the repeal has taken effect and is expected to stimulate new investments in the state. Many experts believe it will make Florida more attractive to both out-of-state and expanding local businesses by reducing operational costs and encouraging new leases.
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Implications for businesses and landlords
Businesses that lease space now get immediate relief. The tax’s absence creates lower occupancy costs. This may free up capital for expansion or hiring. Landlords anticipate a rise in occupancy rates. They also expect a broader range of tenants. This includes small startups and larger corporations.
This change introduces new opportunities. Some property owners note that lease agreements need renegotiation. This reflects the tax’s absence. Industry advisors recommend reviewing contracts, as well as consulting with legal counsel. This ensures compliance and transparent leasing terms.
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Looking forward: economic impact
Industry analysts are optimistic that the repeal will spur commercial growth, revitalizing office parks and retail centers that have struggled through shifting market trends. By eliminating this longstanding barrier, Florida positions itself as a more dynamic, business-friendly environment.
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This article is based on the original piece published on the Florida Realtors website. That article covers the repeal’s background, its anticipated impact on the business and real estate community, and reactions from key industry stakeholders.