A bevy of business groups have joined forces in opposition to a Senate proposal to lower the tax commercial rents by eliminating a tax credit benefiting another industry.
Eight of the state’s leading business organizations — including Associated Industries of Florida, the Florida Chamber of Commerce, the National Federation of Independent Business, and the Florida United Business Association — sent a letter to Sen. Anitere Flores on Wednesday urging here to “support lowering the sales tax currently charged on all business leases without removing the insurance premium tax credit as proposed.”
Flores, a Miami-Dade Republican who serves as Senate President Pro-Tempore, is carrying the legislation (SB 378). The proposal initially would have paid for a cut in the state’s communications service tax by repealing a tax break for insurers. The move has been a priority for Senate President Joe Negron.
But on Tuesday, the Senate Finance and Tax Appropriations Subcommittee approved an amended version of the bill that would repeal the tax break for insurance companies, and use the money to reduce the tax business pay on their commercial rents. Gov. Rick Scott has long advocated for the reduction, as have business groups.
“The business rent tax is a heavy burden to say the least. It discourages new business start-ups and is subjecting existing Florida businesses to disproportionate regulatory burdens, creating instances of double taxation, and stifling business expansion — ultimately costing Florida jobs,” reads the letter to Flores.
“However, eliminating the insurance premium tax credit as a way to reduce the business rent tax does not solve the problem. In fact, it will likely make the problem worse as insurance companies increase insurance premiums on all Florida insurance holders, including homeowners and business owners,” it continues. “In Senate Bill 378 you are effectively swapping a tax cut for a tax increase that will end up costing Floridians more in the end.”
The letter was signed by Tom Feeney, president and CEO of Associated Industries of Florida; Scott Shalley, the president and CEO of Florida Retail Federation; Mark Wilson, the president and CEO of the Florida Chamber of Commerce; Lance Lozano, chief operating officer Florida United Businesses Association; Bill Martin, CEO of the Florida Realtors; Nancy Stephens, executive directors of Manufacturers Association of Florida; Carol Dover, president and CEO of Florida Restaurant and Lodging Association; and Bill Herrle, Florida executive director of the National Federation of Independent Business.
The group said it sent an identical letter to Negron. The bill now heads to Senate Appropriations.