Effective October 1, 2025, Florida House Bill 7031 (HB 7031, Ch. 2025-208) repeals section 212.031 of the Florida Statutes¹ thereby eliminating sales tax or any applicable discretionary sales surtax² on rent or license fees for the use of real property in the state. Other statutory changes to the state's sales and use tax provisions were also made, including limiting the eligibility for the data center sales and use tax exemption.

Commercial rent tax

Section 212.031 of the Florida Statutes previously imposed a 2% sales tax³ on renting, leasing, letting, or granting a license⁴ for the use of commercial real property (the commercial rent tax). The tenant or person occupying, using, or entitled to use any real property was responsible for paying any applicable commercial rent tax to the immediate lessor or person granting the right to such tenant. The tax was due and payable to the Florida Department of Revenue by the lessor or other person who received the rental or license fee payment.

Effective October 1, 2025, commercial rentals are no longer subject to the commercial rent tax nor any applicable discretionary sales surtax. Lessors must continue filing the applicable returns solely for reporting periods through September 2025.⁵ After the final return is filed, the Florida Department of Revenue will update the lessor's sales and use tax account status to reflect this statutory change. If the lessor's account is also used to report other taxable transactions, the lessor must continue to report and remit sales tax on those transactions.

Examples of commercial rentals subject to the repeal include rentals of commercial office or retail space, warehouses, and self-storage units. However, sales tax and any applicable discretionary sales surtax⁶ continues to apply to: (a) commercial rentals for periods through September 2025⁷; (b) short-term rentals or leases of living, sleeping, or housekeeping accommodations for six months or less; (c) parking or motor vehicle storage areas; (d) spaces for docking or storing boats; and (e) designated tie-down or storage spaces for aircraft at airport locations.

Other provisions

HB 7031 also makes the following changes to the state's sales and use tax laws:

• Back to school sales tax holiday: Florida has enacted an annual back to school sales tax holiday, which occurs annually from August 1 to August 31. A list of the qualifying items exempt from sales tax is available on the Florida Department of Revenue website.
• New permanent sales tax exemptions: Effective August 1, 2025, the following items are permanently exempt from sales tax: (a) batteries; (b) bicycle helmets; (c) carbon monoxide alarms; (d) fire extinguishers; (e) insect repellent; (f) life jackets; (g) portable gas cans; (h) portable generators; (i) smoke detection devices; (j) sunscreen; (k) waterproof tarpaulins; and (l) ground anchor systems and tie-down kits.
• Data center sales and use tax exemption: Effective August 1, 2025, data centers that have a critical IT load⁸ of less than 100 megawatts will not qualify for the exemption provided under section 212.08(5)(r) of the Florida Statutes. Thus, a company that previously qualified for the exemption but does not meet the revised eligibility requirements will no longer qualify for the exemption.
• Repeal of aviation fuel excise tax: Effective January 1, 2026, aviation fuel⁹ will be exempt from excise tax and sales tax. As a result, jet fuel, undyed kerosene and aviation fuel will no longer be subject to the 4.27 cents per-gallon excise tax or sales tax. Retail stations and fixed based operators that sell only jet fuel, undyed kerosene, or aviation fuel will no longer be required to obtain a sales and use tax registration.

Implications

The repeal of section 212.031 of the Florida Statutes eliminates the imposition of Florida sales tax and any applicable discretionary sales surtax on rent or license fees for the use of commercial real property.