By: Colby Keefe, Esq.

Beginning October 1, 2025, commercial landlords will no longer be required to pay sales tax on the rent payments received from their tenants. HB 7031, which was signed into law by Governor Ron DeSantis on June 30, 2025, will repeal Section 212.031, Florida Statutes.

What Does the Business Rent Tax Repeal Cover?

The elimination will effect only those payments made toward charges that are levied on October 1, 2025 and later. If a tenant is delinquent in paying rent, for example, and pays a September 2025 rental charge on October 1, 2025, the sales tax will apply at the existing 2.0% rate because that rate did apply the time the September 2025 rent was due.

A Gradual Phase-Out Since 2017

While a full repeal may be a surprise to some, the business rent tax imposed by s. 212.031 has been steadily reduced each year since 2017. At its highest, it was 6% in 2017. Between 2017 and 2024, it dropped incrementally from 5.8% to 5.7%, then was further reduced to 5.5% and later 4.5% before reaching its current rate of 2% in 2024. With this new law, the business rent tax imposed by s. 2120.31, Fl. Stat. will be repealed and eliminated entirely.

Discretionary Sales Surtax (DSS) Still Applies

Local governments still have authority to charge a discretionary sales surtax (“DSS”) under Section 212.055, which applies to commercial property leases. The bill does add language which provides express authority for a levying local government (the Board of County Commissioners or the School Board) of any discretionary sales surtax that does not have an expiration date to reduce or repeal that surtax with a two-thirds vote of the board, beginning four years after a surtax is levied. The reduced rate can be any lower rate otherwise allowable under the applicable statutory provision. A reduced or repealed rate is effective on the January 1 following the board’s vote, or on any subsequent January 1 as provided by the board.

Current DSS Rates for Southwest Florida

The DSS for each county in Florida can be found here. The DSS for the tri-counties is as follows:

• Lee: 0.5%, which is currently set to expire on December 31, 2028.
• Collier: 0.0%
• Charlotte: 1.0%, which is currently set to expire on December 31, 2026.

Action Steps for Commercial Landlords and Property Managers

Landlords and their property managers should ensure that common area maintenance (“CAM”) charges and rental charges are updated to reflect this reduction beginning on October 1, 2025.