One seems to be the lucky number in December, with Florida’s Business Rent Tax dropping 1% on December 1st from 5.5% to 4.5%. This colossal news is a tremendous win, helping countless businesses to expand and become more successful.

From commercial offices, retail space, warehouses, and self-storage units, the commercial landlord and management companies who paid the 5.5% will be able to spend less money and spend more time growing their business.

This reduced business rent tax has been a huge priority and continues to be a high aim for Florida Realtors®. Chris Krzemien, President of Broward, Palm Beaches & St Lucie Realtors® said, “This news is a huge win for our members and provides many opportunities for them to generate more business opportunities and create a footprint in the community.”

During the month of December 2023, it is concurred to have the 4.5% applied, even if such amounts are prepaid before that time. This savings in local businesses is the fuel for your businesses to grow and generate new opportunities in the workplace. This is pivotal for attracting out-of-state businesses and encouraging Florida’s home clientele base to expand within the state.

Florida remains the only state in the country to levy this tax, and the reduction represents a massive triumph of success for local real estate professionals. The Florida Realtors®, The Florida Chamber of Commerce, and others who advocated for a further reduction this year led to the victory of Friday’s 1% that is effective for eight months, giving time for the unemployment trust to make its way around and restore itself.

In the next year, individuals can anticipate further developments and changes in various aspects. Specifically, in the middle of 2024, commercial renters and landlords in Florida can expect a further reduction in tax rates. This reduction is a result of the legislature's authorization during the 2021 legislative session to decrease the state's business rent tax rate to 2%. 

With this legislative decision in effect, it presents an opportune time for businesses to strategize and plan. It is an ideal moment to explore new techniques, innovations, and business models that can contribute to the growth and expansion of their enterprises. Each saved penny from reduced taxes can be utilized to incorporate new initiatives, paving the way for fresh business opportunities and broadening horizons.

Samantha Minns
RWorld Content Writer
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Source: Florida Realtors®