Florida Continues to Lower Tax Burden for Business Owners

TALLAHASSEE, Fla.— Today, FloridaCommerce announced that thanks to Florida’s healthy economy, Florida’s Commercial Lease Sales Tax rate will be reduced from 4.5 percent to 2.0 percent, providing Florida employers with at least an estimated $1 billion in tax relief. Effective June 1, 2024, Florida business owners will have a 2.5 percent tax reduction. This reduction is a result of Florida’s dedicated efforts to efficiently reach the threshold for lowering Florida’s Commercial Lease Sales Tax as outlined in SB 50.

“Thanks to Governor DeSantis’ strong fiscal policies, Florida continues to alleviate tax burdens for Floridians and keeps our economy resilient to federal pressures,” said Florida Secretary of Commerce J. Alex Kelly. “By slashing Florida’s Commercial Lease Sales Tax by more than half, we are easing the strain on Florida employers making it easier for them to grow their business, hire new employees and continue to thrive.”

Florida’s continued investments into the economy benefits everyone who participates in the economy. Florida’s continuing economic successes include:

Florida's statewide unemployment rate has been lower than the national rate for 40 consecutive months.
More than 2.9 million new businesses have been created since 2019, 2.5 million of them created since January 2020.
More than 761,000 people are participating in Florida’s workforce than in February of 2020.
Florida’s GDP grew at a real rate of 6.1 percent in the 3rd quarter of 2023, faster than the national rate of 4.9 percent. Florida’s GDP growth has exceeded the nations for eleven consecutive quarters since the first quarter of 2021.
Florida welcomed a total of 8.3 million overseas travelers in 2023, an increase of 18.3 percent over 2022.

Starting in July 2022, Florida began replenishing the state's Reemployment Assistance Trust Fund after the increase in reemployment assistance benefits payments nearly depleted it in 2020. The Florida Department of Revenue directed by the Florida legislature, distributed $90 million monthly to replenish Florida’s trust fund, and as of March 21, 2024, the trust reached the $4.1 billion threshold. Since the threshold was met, Florida can now reduce the tax.

Florida maintains fiscal prudence with no state income tax and one of the lowest per capita tax burdens of any state in the nation. And, at the Governor’s initiative, Florida has paid down debt and maintained a healthy budget surplus. These tax reductions build on the achievements of the 2024 Legislative session, in which the Governor fought to continue to provide tax savings for Floridians. The Legislature has provided a budget that includes nearly $1.5 billion in tax savings.