CLEARWATER, Fla. — Starting in June, businesses that lease property in Florida will be paying less in rental taxes.

What You Need To Know

  • The state of Florida is lowering its commercial lease sales tax from 4.5% to 2% percent by June 1 

  • Business experts say this will help keep the state competitive in attracting businesses

  • The tax had increased following the pandemic when the Department of Commerce's trust fund was depleted

  • That fund has recently reached over $4 billion, which led to the announced change

Florida’s Department of Commerce announced earlier this month that the state’s commercial lease sales tax rate will go down from 4.5% to 2% by June 1.

The decision was made possible because the state was able to add money back in its reemployment assistance trust fund after it was depleted during the pandemic.

One Clearwater business owner said he was excited at the prospect of pay less tax to rent his facility.

“We were looking for a business that wasn't as stressful as the jobs that we had, we figured this would be nice,” said Michel Napoleon, who is spa director of Essentials Spa in Clearwater.

Napoleon said he and his wife, Marisol, opened Essentials in February of 2020, right before the pandemic.

He said what was supposed to be a time of relaxation, quickly became a source of concern.

“It was quite a learning experience,” Napoleon said.

He said his business was able to survive and, in some cases, thrive with different offerings that allowed them to keep the doors open.

“This was pandemic-proof, so to speak,” Napoleon said. “People were home, people were stressed, and this was a big need.”

In the years that followed, the increasing headache for him, as it was for many businesses in the Bay area, has been the cost of rent.

Especially when you have a spa that’s 5,000 square feet with about 15 treatment rooms.

“The prices aren't cheap,” Napoleon said. “We but we're able to negotiate our rental rate initially. Now, their prices are going up.”

He said inflation has also led to price increases for the products they use, so any lifeline is one they appreciate.

“We can really feel it,” Napoleon said. “So, this change in policy is going to be really good for us.” 

AMPLIFY Clearwater President and CEO Amanda Payne said she believed the tax is unnecessary, so lowering it, and ultimately eliminating it, is the best outcome for businesses like Essentials Spa.

“Between interest rates and rising prices, just because of the limited, limited availability, it's been a challenge,” Payne said.

“We want to remain competitive,” Payne added. “We want to have an environment where people want to continue to move to and bring their businesses to."