Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact email@example.com.
SOURCE Florida Realtors
Governor's Budget Includes $100M to Support the Tax Reduction
ORLANDO, Fla., Jan. 28, 2014 /PRNewswire-USNewswire/ -- Florida Gov. Rick Scott joined commercial Realtors and other business owners today to announce that his proposed state budget, which will be released tomorrow, includes $100 million to support a reduction in the state's sales tax on commercial leases.
"As governor, my mission is to make Florida the No. 1 place in the nation to live, work and play," Scott told the crowd of more than 50 area businesspersons gathered at the Conway Ace Hardware in Orlando. "Florida is the only state that imposes a 6 percent sales tax on commercial leases. That's why I'm proud to announce today that, as part of my 'It's Your Money Tax Cut Budget,' we propose a $100 million reduction in the sales tax on commercial rent."
The economic impact of a $100 million reduction in this tax would provide a $500 million value to Floridians in terms of jobs and economic activity, research indicates. Currently, businesses in the state pay a tax on commercial rent and other lease-related charges, such as insurance premiums, property taxes and common-area maintenance fees for such things as landscaping, janitorial services and building repairs.
Florida Realtors 2014 President Sherri Meadows was on-hand for the governor's announcement.
"Most companies relocating to the Sunshine State are surprised to learn that Florida charges a 6 percent sales tax on commercial real estate leases," said Meadows, CEO and team leader, Keller Williams, with market centers in Gainesville, Ocala and the Villages. "For Florida to be competitive with other states and online retailers, and considered pro-business by prospective employers and companies seeking to relocate, we must reduce - and eventually eliminate - the sales tax on commercial leases. Doing so will create jobs and is critical to our state's economic growth and development. We appreciate Governor Scott for recognizing the importance of reducing this tax."
Walter Toole, the president and owner of the Conway Ace Hardware store along with seven other locations in the Orlando area, added, "I think any way you can lower taxes so you can reinvest in your business, it's a good move. Some of our stores we own and others we lease the property, but we pay sales tax on every one and it adds up. You grow your business by putting most of your profits back into the business. The money that's reinvested helps you grow your business, and it's money that goes back into the economy."
Being the only state that has a sales tax on commercial leases puts Florida at a disadvantage for new business, according to Marian Johnson, senior vice president, political strategy for the Florida Chamber of Commerce.
"It does matter to industries and businesses," she said. "They take a look at these things and it does weigh in their decisions to come here or not. Targeted tax reform is a priority for the Florida Chamber of Commerce. We stand behind Governor Scott because we believe eliminating this tax will encourage new jobs and help grow Florida's economy."
Two bills filed for the 2014 Florida legislative session would begin a phase out of the tax: SB 176 by Sen. Dorothy Hukill (R-Port Orange) and HB 11 by Rep. Greg Steube (R-Bradenton) would lower the rate from 6 percent to 5 percent. Florida Realtors, NAIOP Commercial Real Estate Development Association, the Florida Chamber of Commerce and other business groups support the initiatives.
Florida Realtors®, formerly known as the Florida Association of Realtors®, serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 127,000 members in 61 boards/associations. Florida Realtors® Media Center website is available at http://media.floridarealtors.org.
©2012 PR Newswire. All Rights Reserved.