Florida Governor Ron DeSantis approved House Bill 7031 on June 30, 2025, ushering in significant modifications to the state’s tax laws. The bill incorporates updates spanning commercial lease taxation, expanded sales tax exemptions, adjustments to corporate tax language, and new tax credits. Many sections of the legislation will become active at different points through 2025 and 20261.
Elimination of Sales Tax on Commercial Real Estate Leases
For years, Florida levied a state sales tax on commercial property leases, making it an outlier among U.S. states. With HB 7031, this tax will be rescinded for lease payments covering occupancy periods after October 1, 2025. If rent applies to time before October 1, 2025, sales tax will still apply, regardless of when rent is paid. Certain rental categories—such as short-term residential units, parking, docking, and equipment rentals—remain taxable under separate statutes.
Action Tips: Landlords and commercial tenants should review and, where needed, update lease agreements and operational procedures to prepare for the end of this tax1.
Sales Tax Holidays and Permanent Exemptions
The new law introduces or makes permanent several sales tax relief measures benefiting both businesses and consumers:
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Outdoor Recreation Sales Tax Holiday: Between September 8 and December 31, 2025, hunting, fishing, and camping gear will be exempt from sales tax.
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Expanded Admissions Exemptions: Sales and use tax will no longer apply to tickets for live performances (theater, opera, ballet), state park entry, and some recreational activities. This aims to encourage participation in cultural and outdoor activities across the state.
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Precious Metals Tax Relief: All gold, silver, and platinum bullion sales will be tax-free, without the previous minimum transaction threshold.
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Permanent Back-to-School Holiday: Each August, there will be month-long sales tax exemptions for clothing, footwear, backpacks, school supplies, and computers or related accessories.
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Safety and Disaster Items: Permanent sales tax exemptions now cover items like certain batteries, portable fuel tanks, generators, tarps, ground anchors, fire extinguishers, smoke/carbon monoxide detectors, sunscreen, insect repellent, life jackets, and bike helmets.
Business Note: Retailers and service providers should adjust their point-of-sale systems and ensure compliance with the new tax holidays and exemptions1.
Other Notable Tax Law Changes
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Corporate Tax Adjustments: Certain corporate income tax definitions have been updated; businesses should review official guidance for precise implications.
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Property Tax Appeal Procedures: There are now revised requirements for the process of contesting property tax assessments.
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“Home Away From Home” Tax Credit: The law creates a new state tax credit; further details will follow as regulatory guidance is issued1.
Compliance and Next Steps
The changes in HB 7031 will roll out on various dates in 2025 and 2026. Businesses—particularly those leasing commercial property, operating in retail, or offering recreational and cultural activities—should monitor further regulatory guidance and prepare for compliance well ahead of effective dates.
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