A study conducted by the Regional Economic Consulting Group indicates that eliminating Florida’s commercial rent tax could boost the state’s economy by over $19.7 billion and create around 59,000 jobs

A study released by the Regional Economic Consulting Group (REC Group) has highlighted potential economic benefits of eliminating Florida’s tax on commercial leases, suggesting a significant boost to the state’s economy.

According to the findings, doing away with the state’s commercial rent tax could lead to more than $19.7 billion in new developments statewide over five years, creating approximately 59,000 jobs in construction and related operations. The study projects an initial revenue loss of $976.8 million from the tax cut, which could be offset by increased tax revenues generated from the ensuing economic activities — $193.8 million from construction and $24.1 million from operations and maintenance.

The tax rate has already been reduced several times, and it is expected to be reduced to 2 percent within the current state fiscal year.

“Eliminating this tax, even from the expected lower rate, would result in significant returns to the state economy,” reads the report. “While the full elimination presents a reduction to the State’s coffers, the full economic benefits to Florida’s economy more than exceeds the loss to the government.”

It is expected that removing the Commercial Rent tax would lead to a significant increase in jobs and employment, the study claims, as the construction of new commercial and residential properties will create 47,616 jobs, and it is expected that 11,037 jobs will be created during the five years of operations and maintenance of these properties.

The analysis utilized a combination of static and dynamic models to assess both the immediate and long-term impacts of this policy change. It suggests that for every dollar lost in revenue, the state’s economy could grow by $6.52, a figure that improves to $8.39 when accounting for the new tax collections that would mitigate the initial losses.

“Nearly one thousand people move to Florida every day,” the report continues. “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.”