Tax insight

Florida repeals sales tax on commercial rent, expands exemptions for aviation fuel, and creates sales tax holidays

Insight
5 minute read
July 17, 2025

What happened?

Florida on July 1, 2025 enacted H.B. 7031 which repeals sales and use tax on commercial real property rentals, extends the application deadline for the data center property exemption by 10 years, creates an exemption for aviation fuel, creates permanent and seasonal sales tax holidays, provides sales tax relief on exports, and provides audit commencement clarification.

Why is it relevant?

In recent years, Florida has initiated several rate reductions for the sales tax on commercial rentals. The legislation’s repeal of the tax can reduce sales tax exposure for commercial landlords and tenants in Florida. Companies have additional opportunities to reduce tax with new exemptions, sales tax holidays, and sales tax relief on exports.

Actions to consider

Landlords and tenants in Florida should confirm that tax will not be collected after the repeal is effective October 1, 2025. Companies should stop paying tax on aviation fuel and consider data center specifications that may qualify for the new exemptions, evaluate whether export certificates may be applicable, and review audit response policies and processes.