Question 1

Does the commercial rent tax repeal change whether I should buy my building?

Accepted Answer

It changes the comparison, and most operators have not rerun it. HB 7031, signed June 30, 2025, repealed section 212.031, Florida's sales tax on commercial rent, effective October 1, 2025, county discretionary surtax included. The repeal keys to the occupancy period, so rent for occupancy before that date stays taxable whenever paid. For years, that tax was one of the clearest arguments for owning rather than leasing in Florida, because an owner-occupant paid no rent to tax. That specific argument is now gone, and the buy case has to stand on amortisation, fixed occupancy cost, and the equity you build instead. We would rather you hear that from us than find it in your accountant's year-end letter. Talk to a Florida CPA about your own numbers.

Question 2

What will the Florida closing taxes add to an SBA purchase?

Accepted Answer

0.7 percent on the deed and 0.55 percent on each recorded mortgage. Deed stamps run 70 cents per $100 of consideration under section 201.02(1)(a), statewide except Miami-Dade, and consideration includes any mortgage or lien assumed. Mortgage stamps at 35 cents per $100 under section 201.08 plus the nonrecurring intangible tax at 2 mills under section 199.133 come to 0.55 percent, uncapped. On a $2,000,000 building financed at 90 percent, that is $14,000 of deed stamps and $9,900 on the $1,800,000 of debt (2,000,000 x 0.7% = 14,000; 1,800,000 x 0.55% = 9,900). One 504-specific point worth raising with your lender early: a 504 structure records more than one mortgage, and the tax attaches to each recorded instrument. Ask how your file will be papered before you budget the closing.

Question 3

How will Florida property tax hit my occupancy cost after I buy?

Accepted Answer

It steps up the year after closing, and the cap that follows misses the biggest line. Section 193.1555 covers commercial property, capping annual reassessment increases at 10 percent, but the cap resets on any sale, foreclosure, or transfer of legal or beneficial title, so your first full year is assessed at just value with no carryover from the seller. Then the cap applies for all levies other than school district levies, which are usually the largest component of the bill. Assessment date is January 1. If you disagree with the value, section 194.011(3)(d) allows a Value Adjustment Board petition within 25 days of the TRIM notice mailing, which arrives in August and is not a fixed date, so watch for it. Section 197.162 also discounts the bill 4 percent if you pay in November.

Question 4

Does Florida tax my business income on top of this?

Accepted Answer

No personal income tax, and the corporate tax depends on your entity. Florida Constitution Article VII section 5(a) bars a state tax on the income of natural persons, and changing that takes a constitutional amendment, not a session, which is worth something on a 25-year hold. The corporate income and franchise tax is 5.5 percent for tax years beginning on or after January 1, 2022, after a $50,000 exemption. An LLC taxed as a partnership or a disregarded entity is not itself subject to it; an LLC electing corporate treatment is, and a corporate member of a partnership reports its share. Because an SBA file usually involves an operating company and a real estate holding entity, this is a structure question worth putting to a Florida CPA before you apply.

Question 5

How should I read the title and closing side of a Florida SBA deal?

Accepted Answer

The premium is fixed by the state; the service and the custom are not. Section 627.782 requires the Financial Services Commission to set the premium title insurers charge in Florida and provides that the rates apply throughout the state, so shopping title carriers on price does not work here. What varies is settlement fees, endorsements, and whether the agency can handle an SBA and CDC document set on a deadline. Florida is not an attorney-closing state; title companies and attorneys both close, and licensed title agents handle escrow and disbursement. Who customarily pays the owner's policy is county custom rather than law, so an Orlando file and a Miami file allocate it differently on identical contract language. Expect 30 to 90 days on an SBA timeline, which leaves room to get this right.

Question 6

What happens if an SBA-financed Florida property goes into default?

Accepted Answer

The lender goes to court, because Florida is judicial for everything. Chapter 702 governs commercial property with no power of sale and no commercial exception, so the process runs materially slower than a deed-of-trust state. We will not publish a Florida day count, because no reliable series exists. On the back end, section 45.031 has the clerk sell not less than 20 and not more than 35 days after final judgment, with a 5 percent deposit from the winning bidder and objections due within 10 days of the certificate of sale, and section 45.0315 provides that after that point there is no right of redemption. For an owner-occupant borrower the practical read is that a Florida workout has time in it, but the ending is clean. Personal guaranties on SBA paper are a separate matter for your counsel.

Question 7

What size Florida SBA loan can I get, and how much do I put down?

Accepted Answer

$350,000 to $5,000,000 and up, with financing up to 90%. On a $2,000,000 Florida building that is $1,800,000 financed and $200,000 from you (2,000,000 x 90% = 1,800,000), before closing costs. Terms run up to 25 years on 7(a) and 504 structures. The property must be owner-occupied commercial real estate, meaning your business operates from it. Add the Florida transaction taxes on top of the down payment. Subject to underwriting.

Question 8

Is there a credit requirement, and how long does a Florida SBA file take?

Accepted Answer

SBA underwriting looks at the business, the guarantors, and the property together. There is no hard credit pull to start a file with us, and we will tell you early whether the structure fits. Plan on 30 to 90 days to close, which is the honest range for SBA and is why we raise the Florida title and tax items at the start rather than at the closing table. If you need to move faster than that on the real estate, a Florida commercial bridge is the usual answer while the SBA file is worked. Subject to underwriting.

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