(The Center Square) – Florida’s Unemployment Compensation Trust Fund balance, drained during the COVID-19 pandemic, is expected to exceed its prepandemic level by March, two months earlier than expected, according to the nonprofit group Florida TaxWatch.
That will allow a decrease in state sales tax businesses must pay on payments made to rent or lease of commercial property. The 4.5% business rent tax will be lowered to 2% in June instead of August, according to the Florida Department of Revenue.
Florida TaxWatch said that translates into a $1 billion savings for taxpayers.
The cuts are the result of Senate 50 from the 2021 session, according to TaxWatch. The bill required companies without a physical presence in the state to collect sales tax on products delivered to Florida customers. Those extra dollars replenished the unemployment trust fund, preventing a significant tax increase to employers, TaxWatch said.
The bill also established