Florida businesses and homeowners could save billions under Governor DeSantis’s ambitious 2025-26 tax relief plan, headlined by the elimination of the state’s unique commercial lease tax. The governor’s plan looks to provide over $2 billion in tax relief to Florida residents. The main driver of tax relief is the proposed elimination of the business rent or commercial lease tax. While the rate for the rent tax has been significantly reduced in recent years, its elimination will be welcomed by taxpayers. The rent tax is a burden on taxpayers, financially and administratively, and Florida is the only state that currently imposes a sales tax on the lease of commercial real property.
The governor’s proposal also includes a one-year exemption on the intangibles tax. The exemption would apply to the first $500,000 of residential mortgages between July 1, 2025 and June 30, 2026. The exemption would be limited to owner-occupied primary residences.
The tax relief proposal includes an assortment of sales tax holidays which have been a staple in Florida’s budgets in recent years. The proposed sales tax holidays include the following:
- Freedom Month – exemptions for outdoor recreation purchases subject to limitations
- Back to School – exemptions for clothing, school supplies, computers, and even jigsaw puzzles
- Tool Time – exemptions for tools and equipment
- Second Amendment Summer – exemptions for ammunition and firearms
- Disaster Preparedness – exemptions for items used during disasters such as generators
- Marine Fuel Tax – reduction in motor fuels taxes used in boats
Residents and businesses should monitor the Florida Department of Revenue website for details on each of the exemptions if the legislation is enacted. The governor’s press release can be viewed here.
If you have questions on State and Local Tax matters, please contact the HBK SALT Advisory Group at hbksalt@hbkcpa.com.
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