Business Tax

Reduction of the sales tax on commercial leases, now known as the business tax, continues to be a priority for FR, Florida CCIM Chapter and other and commercial practitioners; since Florida is the only state that charges this tax creating an unfair playing field in Florida.  The initial goal was to get the legislature to stop taxing business in this way, however, over time it became apparent that our best effort would be to work toward reduction of the rate with the goal of phasing it out.  Success has been slow, but the rate was reduced in 2018 to 5.7% and effective January 1, 2020 will be reduced to 5.5%.  The real value here is that there is some momentum in reducing the rate.

Sadowski Trust Fund

The legislative session ended on May 4, and, although the Governor made it a priority to end the raid on the Sadowski Trust Funds for uses other than their intended use, that being affordable housing programs; and, the Senate supported his position, the House did not - and the attempt failed.  Only $200 million has been allocated for affordable housing programs, which will include $115 million to assist Panhandle residents whose properties were devastated by Hurricane Michael, $7 million will go to Jacksonville and $77 million will be distributed statewide.  Clearly, each community must move forward to create their own housing trust funds.