Florida Eliminates Business Rent Tax: What It Means for Commercial Tenants
Important Update Regarding Sales Tax
Florida just made a bold move that’s great news for commercial tenants and real estate investors alike.
On July 15, 2025, Governor Ron DeSantis signed into law House Bill 7031, a $1.3 billion tax relief package that includes the complete elimination of Florida’s Business Rent Tax (BRT)—effective October 1, 2025.
This is a historic win for Florida’s business community—and it’s especially impactful for owners and operators of commercial real estate, like OAK+ELM.
What Is the Business Rent Tax?
Since 1969, Florida has been the only state to charge sales tax on commercial leases—a longstanding burden on local businesses. This tax applied to all types of commercial property: office space, retail buildings, warehouses, land leases, parking spaces, even vending machine areas.
If tenants paid additional costs like insurance or taxes on behalf of the property owner, those payments were also taxed.
With HB 7031, that’s coming to an end.
BRT Will Be Gone by October 2025
Florida has been gradually phasing out the BRT over the last several years:
2017: 6% → 5.8%
2018: 5.8% → 5.7%
2019: 5.7% → 5.5%
2021: 5.5% → 2% (effective summer 2024)
2023: Temporary relief at 4.5%
2025: 2% → 0% (effective Oct. 1, 2025)
This full elimination means businesses across the state will save an estimated $2.5 billion annually—funds that can now be reinvested in growth, hiring, and innovation.
What This Means for OAK+ELM
For us, this is more than a policy change—it’s a strategic advantage.
With assets in Florida and other Southeast markets, OAK+ELM is focused on owning and operating high-quality commercial properties that deliver long-term value to tenants and investors.
Removing the BRT makes Florida:
More competitive nationally for business relocation
A more attractive market for tenants
An even better place to invest in income-producing property
This shift improves net operating income, reduces leasing friction, and increases tenant satisfaction—a win across the board.
Other Highlights from HB 7031
The bill also includes:
A permanent sales tax exemption for hurricane-preparedness and safety supplies
A Back-to-School Sales Tax Holiday every August
A new seasonal tax holiday for hunting and fishing gear
These changes reflect Florida’s continued commitment to both economic strength and resident wellbeing.
Final Takeaway
Florida just became an even smarter place to do business—and Oak and Elm is well-positioned to help tenants and investors take full advantage.
Whether you’re looking to lease commercial space or invest in a growing real estate portfolio, now is the time to explore the Florida market.
Get in touch with OAK+ELM to learn more about available opportunities and upcoming assets.
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