The state real estate advocacy group Florida Realtors has released research that the organization says backs up its claim that eliminating business real estate rent taxes would benefit the state.
According to the findings, eliminating real estate rental taxes for businesses would grow the economy of the Sunshine State by $19.7 billion over the next half decade. Another 58,653 jobs would be created in five years, if the business real estate rent tax ends.
Ultimately, new residents coming to Florida are numbering so many, the study concluded the business real estate rent tax is becoming obsolete.
"Nearly 1,000 people move to Florida every day. It is essential to remove this tax burden to allow for more investment in housing, retail, and development to support growth and keep Florida one of the top-performing economies in the world's largest economy," stated the study's narrative in the report, which was published Tuesday.
The study, entitled "An Economic Impact Analysis of Eliminating Florida's Commercial Rent Tax," concluded state business real estate rental taxes have been reduced so many times, it's essentially time to do away with them.
"This tax rate has already been reduced several times, and it is expected to be reduced to 2% within the current state fiscal year. Eliminating this tax from the expected lower rate generates significant returns to the state economy."
The 21-page report detailing the study was conducted by Regional Economic Impact Consulting Group, founded by two former economists for the state of Florida. It claimed that Florida's rapid growing population will offset any need for a commercial real estate rent tax.
The study acknowledged that state government will lose tax revenue if the business real estate rent tax is eliminated. But the burgeoning increase in state residents will far offset any tax revenue decline, according to the analysis.
"The study shows the state will grow by $6.52 for every dollar of lost revenue when comparing the initial loss to the overall economic gain. When the new tax collections mitigate the initial state losses, the increase becomes $8.39 per dollar of lost revenue."
No comments:
Post a Comment