Florida is on the cusp of a major transformation in its tax landscape. Governor Ron DeSantis and the state Legislature have introduced sweeping reforms aimed at reducing the burden on both homeowners and businesses. This article breaks down the key property tax relief proposals and details the successful elimination of the long-standing Commercial Rent Tax, a major win for the state’s business community.
Permanent Relief for Businesses
The Commercial Rent Tax is Gone
In a landmark move, Florida has permanently eliminated its Business Rent Tax (BRT), which was a state-level sales tax on commercial lease payments. Florida was the only state in the U.S. to impose such a tax, and its repeal is seen as a significant step toward a more pro-business environment.
The Repeal of the Business Rent Tax
* Enacting Legislation: The repeal was finalized in House Bill (HB) 7031, signed into law by Governor DeSantis in June 2025.
* Effective Date: The tax is officially eliminated for all rental or occupancy periods beginning on or after October 1, 2025. This eliminates both the state sales tax (which had been reduced to 2%) and any applicable local discretionary surtaxes on commercial leases.
* Impact: This change is anticipated to generate hundreds of millions in annual savings for businesses, which can be reinvested in wages, expansion, or reduced operating costs.
Next Steps for Businesses (Landlords & Tenants)
While the repeal is a major benefit, businesses must take careful steps to ensure compliance during the transition:
Landlords & Property Managers Must Update Invoicing Systems. They must also cease collecting sales tax for rent/occupancy periods beginning on or after October 1, 2025. In addition, they must address Transitional Payments and Rent payments for periods through September 2025. They will remain taxable, even if the payment is received after the October 1st deadline.
Commercial Tenants must Adjust Payment Systems with updated automated rent payments to remove the sales tax component starting with the October 2025 period. They need to also review Lease Agreements to confirm with landlords that reconciliations and future payments correctly reflect the removal of the tax.
Bold Proposals for Homeowners: Florida Property Tax Relief
The state’s efforts to address high housing costs have led to multiple proposals for property tax relief, with some requiring a vote by Florida residents. Property taxes are the primary funding source for local government services like schools and public safety, making large-scale changes a complex legislative challenge.
Key Property Tax Relief Proposals
Governor DeSantis and legislative committees have been working on several significant proposals to ease the property tax burden on homeowners:
* Constitutional Amendment for Total Abolishment: The most dramatic proposal is a push for a constitutional amendment, slated for the 2026 ballot, that could permanently eliminate property taxes entirely, or substantially reduce them, for homesteaded properties. Any constitutional change requires at least 60% voter approval to pass.
* $1,000 Property Tax Rebate: A more immediate measure proposed is a $1,000 statewide homestead property tax rebate for qualified homeowners, potentially going into effect for the 2025 and 2026 tax years.
* Increased Homestead Exemption: Legislators have considered raising the current homestead exemption (which is up to $50,000) to a much higher value, with figures like $75,000 or even $100,000 being discussed. A proposal for a significant $500,000 homestead exemption has also been put forward, primarily targeting non-school taxes.
* Assessment Cap Modification: Discussions include modifying the “Save Our Homes” assessment growth cap from the current limit (the lesser of 3% or the Consumer Price Index) to a flat 3% cap over a three-year period.
Next Steps for Property Tax Reform
The comprehensive reform proposals are still under negotiation and development. The path forward for major property tax relief is centered on the legislative process:
* Legislative Review: The Florida House Select Committee on Property Taxes continues to review various proposals to find a financially viable and politically agreeable path forward.
* Formal Proposal & Vote: A formal, agreed-upon proposal is expected to be finalized for the 2026 statewide ballot.
* Funding Challenge: A critical hurdle is identifying a stable, alternative funding source to replace the billions in revenue that property taxes currently provide for local governments and schools. Ideas have included adjustments to the state’s sales tax or diverting other revenues.
For Florida residents and businesses, the upcoming years promise significant changes to the tax structure. While the elimination of the commercial rent tax is a done deal, the future of residential property taxes remains a top priority with major developments expected in the lead-up to the 2026 election.
MUST READS
The Steps In Starting A Business In Miami Starts With A Lawyer
Hollywood News: The Debate on AI And If It Will Replace Actors and Creators? – News Talk Florida
Viorica Bruni Editor Athletica Sports Web Publication and Content Creator News Talk Florida
