Repeal of Sales Tax on Commercial Leases (HB 7031)

Florida Commercial Rent Tax Repeal: What HB 7031 Means

The Florida commercial rent tax repeal took effect on October 1, 2025, under HB 7031. This change removes the state sales tax and county discretionary sales surtax from qualifying commercial rent for occupancy periods beginning on or after that date. Read the Florida Senate’s HB 7031 summary.

For businesses leasing office space, the repeal removes a tax expense from qualifying rent. It also gives tenants and property owners a reason to review rental invoices and accounting records.

Which Commercial Rentals Qualify?

The repeal covers commercial office space, retail space, warehouses, and self-storage units previously taxed under section 212.031, Florida Statutes.

However, separate taxes still apply to certain rentals. These include short-term accommodations, motor vehicle parking or storage, boat docking or storage, and aircraft tie-down or storage spaces. See the Department of Revenue’s guidance.

The Occupancy Period Determines the Tax

The Florida commercial rent tax repeal depends on the rental or occupancy period, rather than the payment date.

For example, rent covering September 2025 remains taxable even if the tenant pays it in October. Qualifying rent for occupancy periods beginning on or after October 1, 2025, is no longer subject to these taxes.

If a landlord incorrectly collected tax on qualifying October rent, the tenant must request the refund from the landlord. The Department of Revenue explains these transition rules.

Review Your Office Leasing Budget

When comparing offices, look beyond the advertised rent. Review the space, location, lease terms, and any additional charges listed in the agreement.

Ask for a clear breakdown of monthly costs. This can help you compare properties and understand how each option fits your business budget.

For an existing lease, review your invoices with the property manager. Identify the occupancy period attached to each payment and ask about any tax charges that appear incorrect.

Explore Office Space for Your Business

Highlight Realty Network helps businesses explore professional and medical office leasing opportunities.

Visit our office leasing page to begin your search. You can also contact our team to discuss your space requirements or schedule a showing.