Rick Scott Looks to Cut Business Rental Sales Tax

Gov. Rick Scott held a media event in Orlando on Tuesday, calling for reducing the business rental sales tax by 0.5 percent as part of his proposed budget.

This part of our tax cut agenda is a $100 million reduction in the sales tax on commercial rent, which costs businesses about $1.4 billion per year, Scott said, insisting the tax cut will help businesses expand in the Sunshine State. This reduction will make it more affordable for businesses to lease space, so they can keep more of the money they earn and create more jobs. Florida is the only state that imposes this tax, and we must keep working to make Florida the best place in the world to start and grow a business.

Between this proposal and his call for reducing $400 million in car registraton fees, Scott is looking to cut $500 million in taxes in his proposed budget.

Scotts proposal to cut the business rent sales tax won the applause of some of the leadership of the business community on Tuesday.

"Governor Scotts proposed reduction in this tax will help economic development councils and industry groups attract new businesses to their regions, said Sherri Meadows, the president of the Florida Realtors. It will also begin to eliminate the unfair double taxation that occurs when tenants are forced to pay sales tax on property taxes collected as part of their lease."

When Florida stands out as the only state in the nation that taxes commercial leases, word gets around to businesses and CEOs, said David Hart, the executive vice president of the Florida Chamber of Commerce. Targeted tax reforms are essential to making Florida more competitive, and will provide job creators the opportunity to put more Floridians to work. The Florida Chamber thanks Governor Scott for his focus on securing Floridas future by reducing commercial property lease taxes.