NAIOP 2019 Legislative Initiative: Business Rent Tax
NAIOP’s efforts to further lower taxes that businesses pay on commercial leases in Florida cleared its first hurdle Monday at the state Capitol with passage of a measure to slash the so-called business rent tax from 5.7 to 4.2 percent.
Florida is the only state in the nation that taxes the rent and CAM paid on office, industrial and retail leases. The Senate Commerce and Tourism Committee unanimously passed the measure as part of the chamber's 2019 tax cut package FL SB1112 19R. The legislation still has to clear the Senate Finance and Tax Committee and the Appropriations Committee and a companion bill has yet to be filed in the House.
“The tax makes Florida less competitive when national and multi-national corporations analyze the bottom-line economics of where to relocate or expand a business unit in the United States, and it robs our local and regional businesses of vital capital to grow and hire,” says Darcie Lunsford, president of NAIOP South Florida. “This business rent tax is not only levied on the rent businesses pay, but also the operating expenses of a commercial property, which includes property taxes. In essence it taxes a tax.”