Governor Rick Scott today announced his proposed reduction of the sales tax on business rents as part of his 2014-2015 “It’s Your Money Tax Cut Budget.” The Governor made the announcement at an Ace Hardware in Orlando, where he highlighted his commitment to eliminating $500 million in taxes and fees for the upcoming legislative session.
Governor Scott said, “This part of our Tax Cut Agenda is a $100 million reduction in the sales tax on commercial rent, which costs businesses about $1.4 billion per year. This reduction will make it more affordable for businesses to lease space, so they can keep more of the money they earn and create more jobs. Florida is the only state that imposes this tax, and we must keep working to make Florida the best place in the world to start and grow a business.”
Sherri Meadows, President of the Florida Realtors said, “Governor Scott’s proposed reduction in this tax will help economic development councils and industry groups attract new businesses to their regions. It will also begin to eliminate the unfair double taxation that occurs when tenants are forced to pay sales tax on property taxes collected as part of their lease.”
The Governor’s Budget reduces the tax on commercial leases by one half of a percentage point, saving Florida businesses more than $104 million annually. This reduction, combined with the Governor’s $400 million reduction in car registration fees, totals the Governor’s commitment to eliminating $500 million in tax and fees.
John Sebree Senior Vice President of Public Policy for the Florida Realtors said, “Most companies relocating to the Sunshine State are surprised to learn that Florida charges a 6 percent sales tax on commercial real estate leases. Realtors applaud the Governor for his efforts to reduce this tax which will make Florida much more competitive.”
David Hart, Executive Vice President, Florida Chamber of Commerce said, “When Florida stands out as the only state in the nation that taxes commercial leases, word gets around to businesses and CEO’s. Targeted tax reforms are essential to making Florida more competitive, and will provide job creators the opportunity to put more Floridians to work. The Florida Chamber thanks Governor Scott for his focus on securing Florida’s future by reducing commercial property lease taxes.”
Rick McAllister, president and CEO of the Florida Retail Federation said, “Many elements of commercial leases are calculated in the taxable base, so reducing this tax burden will immediately help the bottom line of Florida’s top job creators — small businesses. Because the sales tax on commercial leases is not imposed by most states, reducing it will make Florida a more attractive location for retailers.”
Jonathan Moore, NFIB/Florida Leadership Council Member & Owner of Acquisition Consultants, Inc. said, “We applaud Governor Scott for including a cut in the sales taxes on commercial leases into his budget this year. Florida is the only state that imposes this tax. Any decrease in the rental sales tax serves as a relief for businesses of all types and the potential for employment. Governor Scott is making it clear that Florida is open for business.” – Jonathan Moore, NFIB/Florida Leadership Council Member and owner of Acquisition Consultants, Inc.
Danny Smith, Chairman of the Florida Realtors Commercial Alliance Committee said, “The economic impact of a $100 million reduction in this tax would provide over $500 million in value to Floridians in terms of jobs and economic activity. We appreciate Governor Scott for recognizing the importance of reducing this tax.”