On June 30, 2025, Florida Governor Ron DeSantis signed House Bill 7031 into law, enacting several significant tax changes for businesses and residents. These include the permanent elimination of the state’s business rent tax and the expansion of sales tax exemptions and holidays.
Elimination of the Business Rent Tax
Florida’s repeal of the business rent tax is a notable shift for commercial tenants and landlords. Here’s what you need to know about this change:
- Effective October 1, 2025, Florida will permanently eliminate the sales tax on commercial leases—commonly known as the business rent tax.
- Florida was the only state to impose a sales tax on commercial real estate rentals. This tax previously applied to office space, retail stores, warehouses, parking, and docking spaces, as well as specific licenses for property use.
- The business rent tax rate has been reduced incrementally over the past decade, from 6% to 2% as of June 1, 2024. The new law removes the tax entirely.
- The repeal is projected to reduce state and local revenue by over $1.1 billion in the upcoming fiscal year.
Permanent Sales Tax Exemptions
House Bill 7031 establishes permanent sales tax exemptions on several categories of goods. These changes are designed to reduce costs for both families and businesses.
- Disaster and hurricane preparedness supplies: Batteries, portable generators, tarps, ground anchors, and fuel tanks are now tax-exempt year-round.
- Safety and health items: Fire extinguishers, smoke detectors, carbon monoxide detectors, sunscreen, insect repellent, life jackets, and bicycle helmets are permanently exempt from sales tax.
- Gold, silver, and platinum bullion: Purchases under $500 are now tax-free. Transactions above $500 were already exempt.
- Admission to Florida State Parks: Permanent exemption for state park admission, including annual passes.
For those located in Hillsborough County, be sure to also review the recent sales and surtax increases that may affect your local tax obligations.
Expanded Sales Tax Holidays
Florida has expanded and made permanent several sales tax holidays. These annual events offer targeted savings for families and businesses.
- Back-to-School Sales Tax Holiday: Now permanent every August. Exemptions apply to clothing (up to $100), shoes, backpacks, school supplies (up to $50), learning aids (up to $30), and personal computers (up to $1,500).
- Hunting, Fishing, and Camping Sales Tax Holiday: From September 8 through December 31, 2025, sales tax exemptions apply to a range of outdoor supplies, including guns, ammunition, tents, sleeping bags, and fishing equipment.
Additional Tax Law Updates
Beyond sales tax changes, House Bill 7031 includes several other tax law updates that may affect your business operations. Key points include:
- The state’s conformity to the Internal Revenue Code is updated to January 1, 2025.
- The aviation fuel tax is eliminated as of January 1, 2026.
- The new tax on natural gas fuel is scheduled to take effect on January 1, 2030.
- Admission to NASCAR Cup Series Championship Races at Homestead-Miami Speedway is exempt from sales tax.
Business Considerations
Businesses should carefully review these changes to ensure compliance and maximize available exemptions. Consider the following steps as you update your accounting and payroll processes.
- Businesses with existing commercial lease agreements should review contracts for references to the business rent tax and update accounting systems accordingly.
- The elimination of the business rent tax reduces tenancy costs and administrative burden for commercial tenants.
- Consult with a CPA to ensure compliance with the new tax law and to maximize available exemptions.
Need Help Navigating These Changes?
Florida’s tax landscape continues to evolve. Whether you’re a commercial tenant adjusting to the elimination of the business rent tax or a business owner looking to take advantage of new exemptions, our team is here to help.
Rivero, Gordimer & Company, P.A. has been serving the Tampa Bay business community for over 40 years. Our CPAs can help you understand how these changes impact your operations and ensure you remain compliant. Contact us today to schedule a consultation.
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