Florida Repeals Sales Tax on Commercial Rentals, Extends Data Center Exemption, Introduces Tax Holidays

Florida enacted House Senate Bill 7031 on June 30, 2025
Repeals sales and use tax on commercial real estate rentals
Extends data center property exemption deadline by 10 years
Creates exemption for aviation fuel
Establishes permanent and seasonal sales tax holidays
Provides sales tax relief on exports
Business rent tax of 2 percent no longer applicable from October 1, 2025
Beneficial for landlords and tenants in Florida
Businesses can deactivate or cancel sales tax accounts
Final tax return and payment required within 15 days of account closure
No longer responsible for collecting local sales and use tax on commercial rentals
Data center exemption certificates extended to June 30, 2037
New requirements for data center exemption include 100 megawatts IT load and USD 150 million investment
Unclear if new exemption rules apply to existing data centers
Florida was the only state with sales tax on commercial rentals
Repeal expected to reduce tenancy costs and administrative burden
Data center operators must assess applicability of new rules

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.