TThe State of Florida is reducing a sales tax, known as the Business Rent Tax, on the total rent charged for the right to use or occupy commercial real property.

Beginning January 1, 2018, the reduction, from 6 to 5.8 percent, will result in over $25 million in immediate savings for Florida’s businesses that will now be returned to local communities. Additionally, it is projected that Florida’s businesses will save over $61 million annually moving forward.

Commercial real property can include land, buildings, office or retail space, convention or meeting rooms, airport tie-downs, and parking and docking spaces. In addition, if the tenant makes payments such as mortgage, ad valorem taxes, or insurance on behalf of the property owner, such payments are also classified as rent.

With small businesses, startups and entrepreneurs typically spending a larger percentage of their money toward rent, these savings could be used to create jobs, invest in new technology or provide new employee benefits.