The Florida Department of Revenue has decided to suspend its consideration of a sales tax on tenant improvements to commercial property.
For now, at least.
“We are not proceeding with the rule at this time,” DOR spokeswoman Renee Watters said Tuesday.
Commercial real estate brokers and development industry leaders opposed the tax, suggesting it had the potential to have a significant negative impact on the state’s economic comeback.
The Florida Gulfcoast Association of Realtors hosted a meeting of industry leaders and DOR officials in Tampa earlier this month.
Tenant improvements are any type of added or changed development to a real estate structure made to help a lessee conduct business. Industry officials were concerned that a tax would dampen tenants’ willingness to improve and expand their businesses, a key to Florida’s recovery.
Could the proposal return in the future? “That’s what ‘at this time’ generally means,” Watters said.
The state is facing a $2 billion budget shortfall in 2012.
Source: TBBJ
