M. Scott Kleiman, Law Firm of Kalis & Kleiman
(954) 791 – 0477
Florida’s Legislature Tackles Commercial Lease Taxes
Davie, Florida – The Florida Legislature is tackling two major bills this session that could impact commercial lease taxes.
The first Senate bill is SB 176 - Tax on Sales, Use and Other Transactions. The purpose of the bill is to reduce the tax levied on rental or license fees charged for the use of real property effective on a certain date, etc. The bill’s proponents hope to lower the commercial lease tax rate from 6 percent to 5 percent. Today, Florida is the only state that collects sales tax on commercial rent.
A similar House bill is HB 11 - Tax on Sales, Use and Other Transactions. This bill provides for incremental reduction of tax imposed on rental or license fees charged for use of commercial real property; provides for future repeal of tax.
While many would like to see the taxes go away completely seeing it as a disadvantage in growth and recruitment of new businesses to the State, others see it as a large loss in tax income, approximately $1.3 billion, and a loss of jobs. The Florida House of Representatives will reconvene on March 19, 2014 to discuss and debate the matter.
The attorneys at KALIS & KLEIMAN have more than 50 years of combined experience and extensive knowledge in both State and Federal laws governing Real Estate and Commercial Leases. We regularly represent owners, developers, investors, lenders, borrowers, landlords, tenants, and real estate professionals in matters involving acquisitions, financing, leasing, permitting, land use and zoning, development, and tax planning. If you have questions regarding your commercial lease contact us at 954-791-0477.
The law firm of Kalis & Kleiman focuses on Commercial and Real Estate Law and Wills, Probate and Trusts. The firm was founded in 1996 and is headquartered in Davie, Florida, at 7320 Griffin Road, Suite 109. Kalis & Kleiman can be contacted at 954.791.0477 with additional information about the law firm on their website at http://www.kaliskleiman.com.