Scott Shalley: Business rent tax — Florida’s unwanted distinction

There is no denying that disagreements abound in Tallahassee as leaders work to finalize a state budget. While the divides are challenging, all who serve have shown a shared commitment to ensure that Florida remains the best state in the nation to work, play and prosper.

Florida consistently leads the way to break down barriers, eliminate unnecessary mandates and adopt smart regulations. The forward-thinking, innovative solutions we pioneer here often set the national policy agenda.

But there’s one distinction that we’re much less likely to boast: Florida is the only state in the nation that charges a business rent tax on commercial property. Not New York. Not Connecticut. Not even California.

That means every time employers pay rent, they’re also forced to fork over a chunk of change to the state government.

There are hundreds of thousands of employers in Florida who currently pay an additional 2% tax on rent for office space, operations facilities, storage warehouses and more. Collectively, businesses that operate in Florida pay more than $1 billion every year to bloat the government.

This hefty tax on top of other challenges Floridians face – inflation, supply chain disruption and high labor costs – makes it challenging to grow, create jobs and prosper. In a state known for economic freedom and growth, this tax is the last remnant of a bygone era.

As national leaders work to bring production of goods back to America, Florida should be first on the list for businesses seeking to expand, relocate or start new ventures. The Sunshine State needs to stand out for all the right reasons, not for our “Florida Only” tax on business rent.

Fortunately, we’re moving in the right direction. Since 2018, Florida lawmakers have steadily reduced the rent tax from 6% to 2% in 2024. In doing so, our leaders have provided more than $1.2 billion in annual tax relief to businesses.

These reductions have enabled businesses to create new jobs and hire additional team members, benefiting all Floridians.

Let’s keep up the momentum by eliminating the business rent tax altogether.

As we navigate uncertainties in the global economy, eliminating the business rent tax is more important than ever. It would provide more than a billion dollars in meaningful tax relief and a much-needed boost to the Sunshine State. It would send a powerful message to job creators: Florida isn’t just a good place to do business – it’s the best.

On behalf of Florida’s more than 387,000 retail businesses, which include global brands, generational businesses and unique local boutiques, I encourage our elected officials in the House and Senate to eliminate Florida’s business rent tax. Say goodbye to this unwanted distinction and roll out the welcome mat for new businesses, economic growth and job creation.

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Scott Shalley is the president and CEO of the Florida Retail Federation.